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Menu
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    • Ground Lease Fund
    • Europe Fund I
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Frequently Asked Questions

Who is SANTÉ Realty?

SANTÉ Realty Investments was formed by the Small family as the primary way to accomplish its mission of creating permanent income for their special needs daughter and to contribute to their charitable endeavors. Their initial mission grew into a larger purpose driven vision to join other families and use money making real estate to generate perpetual income while providing long-term wealth enhancement.

What is SANTÉ Realty’s mission?

SANTÉ Realty Investments is a purpose-driven company working to positively impact the next generation by investing in money making real estate.

What is SANTÉ Realty’s track record?

SANTÉ Realty Investments has more than a decade experience managing a total of $2.5 Billion of real estate assets both in investments and advisory & management services. The company manages several properties in the United States of America and has experience in 7 countries worldwide. Our results prove that we have achieved an above average return to investors in properties being contributed to the Funds.

What is SANTÉ Realty Multifamily Fund III?

The SANTÉ Realty High Yield Fund III, LLC owns Multifamily investment properties through Single Purpose Entities (SPEs) with SANTÉ Realty Investments and its affiliates managing them to ensure maximized distributions of profit to investors.

What are the Funds' expected returns?

SANTÉ Realty Investments focuses on high conviction investment theses that deliver institutional investors superior returns on a net basis. Our Funds deliver returns commensurate with each dedicated focus from core and core plus to international opportunities.

What is SANTÉ Realty Fund II?

SANTÉ Realty Fund II is the latest fund offering from SANTÉ Realty Investments with an investment thesis designed around the acquisition of ground leases and select NNN lease real estate projects throughout strategically identified markets across the US.

What do you invest in?

The SANTÉ Realty Investments provides private equity fund investments in niche real estate based on distinct investment thesis where the firm has a high conviction of being able to deliver superior returns to its institutional investors.

What exactly is a ground lease?

A ground lease is a structure whereby the landlord owns the ground, and the tenant owns the improvements constructed on the ground. The land is leased on a long-term, triple net-lease basis to the tenant who then pays monthly payments to the landlord.

Who qualifies to invest in SANTÉ Realty properties or funds?

SANTÉ Realty Investments is only able to accept Accredited Investors as defined by the Securities and Exchange Commission under rule 501 of Regulation D.

Where does SANTÉ Realty Invest?

SANTÉ Realty Investments invest in real estate assets across the United States and through its Luxembourg subsidiary in Europe.

Why does SANTÉ Realty Invest internationally?

SANTÉ Realty uses its investments in Europe to geographically diversify their investment opportunities for our institutional investors. The benefit of providing both U.S. and international investments is that our investors gain exposure to different currencies as well as separate political influences.

Who do I contact about investment opportunities?

Please reach out to InvestorRelations@santerealty.com.

How long are ground leases?

Ground leases can be established for up to 99-years in the United States, which is the duration of a SANTÉ Standard Ground Lease™.

How much of a property's total value would SANTÉ Realty Invest for a ground lease?

SANTÉ Realty Ground Lease Fund typically invest 25-30% of the total property value in a SANTÉ Standard Ground Lease™.

What is the maximum amount of the property's stabilized Net Operating Income (NOI) allocated to pay the ground lease?

The maximum percentage of the property’s stabilized NOI to pay the ground lease is up to 25% (i.e., 4:1 ratio).

Why have building owners historically not preferred utilizing a ground lease?

The reason that building owners did not prefer utilizing ground lease in the past is because there were fair market adjustments in lease payments, which made it unpredictable for building owners. SANTÉ Standard Ground Lease™ do not have fair market adjustments, therefore providing a predictable and reliable solution for building owners.

What happens to “additional collateral” of the building improvements at the end of the ground lease term?

Building improvements revert to the fee simple ground owner, although the vast majority of the time a ground lease extension is agreed to between the parties years, if not decades, in advance of the expiration of the original 99-year ground lease term.

How does the ground lease owner protect themselves from building improvements’ deferred maintenance?

Under a SANTÉ Standard Ground Lease™, we would have reserves maintained by the building improvement owner to ensure no deterioration in the building improvements.

How do lenders view and underwrite loans on building improvements subject on a ground lease?

Typically, lenders view the ground lease payment as an additional property tax. Therefore, it is quite straightforward to underwrite a building on a ground lease for lenders. In fact, the SANTÉ Standard Ground Lease™ avoids fair market adjustments, which is preferred by building improvement lenders.

Who pays the property taxes when different parties own the building improvements and the fee simple ground?

The owner of building improvements pays the property taxes as part of a NNN commercial lease with the fee simple ground owner.

What happens if a building subject on a ground lease incurs an significant insurance loss?

The fee simple ground owner typically has a clause that building owner must continue paying ground lease payments and restore building to condition just prior to insurance loss. Under a SANTÉ Standard Ground Lease™, these insurance proceeds must be used for this remediation.

What happens to the tenant lease payments if the building owner doesn’t pay their monthly ground rent?

Under a SANTÉ Standard Ground Lease™, an Assignment of Rents is implemented with tenants of the building to ensure that the ground lease payment (as well as property taxes and property insurance) are paid in full.

What rights do lenders on the building improvements have if their borrower goes into default?

The mortgage lender may step into the place of the building improvements owner and make the agreed upon monthly ground lease payments as well as the NNN charges such as property taxes and property insurance.

What impact does a ground lease have on the tenants of the building improvements?

None. Under a SANTÉ Standard Ground Lease™, there is no communication with the tenants of the building improvements whatsoever.

What capital improvement requirements are building owners typically required to do when there’s a ground lease in place?

The building improvements owner is required to keep the property in good condition. Under a SANTÉ Standard Ground Lease™, reserves or deferred maintenance are typically required to be held in escrow to ensure the building does not incur deferred maintenance during the duration of the ground lease.

Can the owner of the building improvements buy-back the land or cancel the ground lease?

Yes, after an agreed upon initial period a SANTÉ Standard Ground Lease™ may be canceled if the building improvements owner pays for the land using a predetermined formula similar to a prepayment penalty on a mortgage.

Can the building improvements owner change the functional use of their property?

Yes, given the long duration of a SANTÉ Standard Ground Lease™ and the probability of technological, demographic, and functional use changes over that time horizon, a building improvements owner can get approval from the fee simple ground lease owner to update the intended use of the property.

Does SANTE Realty Investments invest in vacant land or pre-development parcels?

No, a SANTÉ Standard Ground Lease™ is only implemented on stabilized, cash-flowing properties.

Can the building improvements owner sell their property?

Yes. Just as properties are bought and sold every day subject to the encumbrance of property taxes, building improvements on ground leases can be readily bought and sold.

4939 W Ray Rd., #4-507
Chandler, Arizona 85226

68 Avenue de la Liberté
L-1930 Luxembourg

+1 480.398.4954

Info@SanteRealty.com

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1All projections and forward-looking statements are based on the information available to the Fund and its analysis of the same. They are not promises of performance or specific returns, and all case studies and historical statements are provided for informational purposes. They are not promises of future performance or specific returns.