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.
SANTÉ Realty Investments is a purpose-driven company working to positively impact the next generation by investing in money making real estate.
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.
SANTÉ Realty Investments typically works with institutional investors including sophisticated family offices and ultra high-net-worth individuals who all must qualify as Accredited Investors as defined by the Securities and Exchange Commission under rule 501 of Regulation D.
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.
Ground leases can be established for up to 99-years in the United States, which is the duration of a SANTÉ Standard Ground Lease™.
SANTÉ Realty Ground Lease Fund typically invest 25-30% of the total property value in a SANTÉ Standard 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).
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.
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.
Under a SANTÉ Standard Ground Lease™, we would have reserves maintained by the building improvement owner to ensure no deterioration in the building improvements.
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.
The owner of building improvements pays the property taxes as part of a NNN commercial lease with the fee simple ground owner.
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.
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.
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.
None. Under a SANTÉ Standard Ground Lease™, there is no communication with the tenants of the building improvements whatsoever.
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.
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.
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.
No, a SANTÉ Standard Ground Lease™ is only implemented on stabilized, cash-flowing properties.
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.
SANTÉ Realty Investments invest in real estate assets across the United States and through its Luxembourg subsidiary in Europe.
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.
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.
Please reach out to InvestorRelations@santerealty.com.