CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - THURSDAY, JANUARY 16, 2025

A Funny Thing Happened to My Ground Lease in Bankruptcy Court

Exterior Courthouse

Ground leases have been around since the Middle Ages and bankruptcy laws have existed since at least Roman Times.

November 25, 2024
Christopher F. Graham & Morgan A. Goldstein - White and Williams LLP

EXECUTIVE SUMMARY
Ground leases are an important – if somewhat unusual – part of the real estate finance industry. Because they typically cover large expensive properties like Rockefeller Center and The Empire State Building, to name two, and last a long time (99 years and up to start) the likelihood of something unexpected or unintended happening is high. This likelihood increases dramatically if, as highlighted below, one or both of the lease parties’ files for bankruptcy. Accordingly, real estate professionals should take note and take care when entering into any transaction involving a ground lease.

Reprinted courtesy of Christopher F. Graham, White and Williams LLP and Morgan A. Goldstein, White and Williams LLP

Mr. Graham may be contacted at grahamc@whiteandwilliams.com
Ms. Goldstein may be contacted at goldsteinm@whiteandwilliams.com


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