NNN Ground Lease vs. Fee Simple Cap Rate Solver

Underwrite corporate investment-grade ground leases, tenant-funded building improvements, reversionary rights, and inflation-hedged bond-equivalent yields.

Ground Lease Terms & Rent

Initial Annual Ground Rent ($ / yr)

Initial Primary Lease Term (Years - e.g. 20 yrs)

Rent Escalation Rate (% every 5 years - typically 10%)

Acquisition Cap Rate (% - e.g. 4.75%)

Valuation & Yield Over Term

Institutional Property Purchase Valuation

$3,052,632 Asset Value

Year 20 Escalated Annual Rent

$192,995 / yr (+33.1% Growth)

20-Year Cumulative Cash Distributions

$3,371,250 Total Pure Cash