Developer ground lease is expiring...should I sign a ground lease myself?
Hi,

&amp;#x200B;

I want to sign a ground lease on a retail center whereupon I propose constructing, entitling, and operating my business. The term of the proposed lease will be 25 years with two 10 year options to renew. I am leasing the property from a developer whom initially ground leased the vacant land decades ago from the original owners.

However, the initial term of the developer's ground lease is expiring soon. My broker is going to receive more information soon, but the preliminary information that I have is something along the lines of their initial term expiring within the next three years, with one ten year option to renew (they may have more, I am waiting for that information).

What are the implications for my business in the case that the developers do not have more options to renew? I am afraid that my leasehold would be voidable and the original owners would have the ability to step in at any time and kick me out before the expiration of my initial term.

If this is the case, what are some of my options to provide myself with a safeguard and realize my lease throughout its term? Can I negotiate with the original owners? Should the development company? Or am I just "stuck" and taking the investment risk? I fully intend to consult my legal council for the leasehold, if there's any specific clauses that would be pertinent to discuss that you may have experience with, please let me know 

Thanks in advance
[{"id": "e86ykr2", "text": "The term of the ground lease is too short. Lenders want to see a ground lease with a term that\u2019s 5-10 years longer than the amortization of the loan they are providing ", "replies": [], "depth": 1}, {"id": "e86yph6", "text": "You need to look at the terms of your lease. If the ground lease expires and the owner of the land takes over ownership of the buildings, your lease is likely still enforceable. Unlikely that they can just kick you out ", "replies": [{"id": "e86yvay", "text": "Lessor would be the development company and owners? Just getting ideas to bounce off my attorney", "replies": [{"id": "e8gpkqk", "text": "Your lawyer will know what to do. You  need a subordination and non disturbance agreement signed by the landowner who is leasing to your landlord.  You need this executed before you sign a ground lease. Then, all of these documents need to be recorded. I also agree with another commenter that you should have more term on the ground lease if you\u2019re building improvements. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e89sgns", "text": "The developer is likely prohibited from leasing to you for a term longer than the ground lease.  The ground lease may also require that the fee owner consent to any (sub)lease. You need to speak with an attorney but you should try to structure the deal so that ground lease is renewed/amended at the same time as your deal. Also, get ground lease SNDA.", "replies": [], "depth": 1}]