Maximize Returns with a Sundial Ground Lease
- Reduced equity requirement
- Increased cash-on-cash and IRR returns
- Improved leverage and financeability
- Flexible and tailored structure
- Ultra long term and low cost capital
- Significant tax advantages
01 — Uses
Enhance New Acquisitions
- Improve going-in cap rate
- Reduce equity requirement
- Increase cash-on-cash and IRR returns
Strengthen Refinancings
- Lower cost of capital
- Increase aggregate proceeds
- Lessen interest rate risk
02 — Key Benefits
Key Aspects of a Sundial Ground Lease
Ultra Low Cost
Sundial’s cap rate is priced considerably tighter than overall asset cap rate.
Leasehold Lender Friendly
Leasehold can be repeatedly mortgaged for attractive aggregate proceeds.
Tax Advantaged
All asset depreciation retained by Leasehold.
Maximized Returns
Leasehold returns maximized with predictable and financeable structure.
Non-invasive ground lease
Sundial’s ground rent only represents 20-30% of asset NOI.
Leasehold NOI
70
-
80
%
of Asset NOI
Ground Rent
20
-
30
%
of Asset NOI
03 — opportunities
Available for
all asset classes across the United States
- Office
- Retail
- Multifamily
- Hospitality
- Industrial
- Student Housing
- Self Storage
- Office
- Retail
- Multifamily
- Hospitality
- Industrial
- Student Housing
- Self Storage
04 — Capitalization
Illustrative Structure Comparison
Traditional Financing
$
35
M
Equity
$
65
M
Property Loan
Sundial Ground Lease
$
23
M
Equity
$
42
M
Leasehold Loan
$
35
M
Ground Lease
- Significantly reduced equity
- Strengthened going-in cap rate
- Enhanced cash-on-cash, IRR, and multiple
- Improved DSCR and debt yield for Leasehold Lender
- All deprecation retained by Leasehold
- Ultra long term and low-cost capital
- Financeable, non-invasive, and accretive structure
Traditional Financing
$
10
M
Equity
$
10
M
Loan
Sundial Ground Lease
$
10
M
Equity
$
10
M
Loan
$
10
M
Ground Lease
- Significantly Reduced Equity
- Strengthened Going In Cap Rate
- Enhanced Cash on Cash, IRR, and Multiple
- Improved Coverage and Debt Yield for Leasehold Lender
- All Depreciation Retained by Leasehold
05 — About
was formed as
a joint venture between
AGW Partners LLC and
Gould Investors L.P.
We seek long-term appreciation underlying risk-mitigated commercial real estate investments.
Through Sundial, we acquire ground leases with safe, patient, and bond-like returns.
Sundial’s affiliates have significant experience forming and scaling specializations in real estate.
