Irwin Katsof, Lady Margaret Thatcher and Tom Brokaw. Former Attorney General of the United States John Ashcroft, Former Prime Minister of Great Britain and Northern Ireland The Right Honorable Sir John Major, KG, CH and Irwin Katsof. Former President Bill Clinton with Irwin Katsof. Michael Douglas, President Mikhail Gorbachev, Raisa Gorbachev and Barbara Walters.
 


TERRA - PRODUCTS AND SERVICES

Terra Partners offers a variety of innovative transactional techniques. The proprietary Terra Partners concepts are at the forefront of business leasing technology. To learn more about our products please fill out an contact inquiry and someone will contact you shortly. Following is an overview of Terra Partners' two primary lease products.

Terra Advantage Lease TM

Terra Partners has developed an innovative lease structure, the Advantage Lease, for leases of land and improvements optimized to provide the lowest cost of leasing land available in the market today. The Advantage Lease is a specialized triple-net, bond-type lease designed to provide investment-grade companies the benefits of a long-term operating lease with the lowest possible impact on earnings, and the lowest possible economic cost.

What are the Benefits of the Terra Advantage Lease?

  • Total operational control for 30 to 40 years
  • 15 to 25 years of free rent
  • Rent rebate at end of term equal to 40% to 70% of original property value
  • Rent based on lessee's credit
  • Operating lease accounting treatment
  • Lowest impact on earnings
  • Total control during construction of build-to-suits
  • Right to substitute properties
  • Structuring flexibility to match company financial goals



The Terra Advantage Lease is ideally suited for:

  • Investment-grade companies with real estate assets valued above $25 million
  • Long-term occupants who can commit to the property for at least 15 years
  • Refinancing synthetic leases
  • Build-to-suits
  • Property portfolios



Terra Ground LeaseTM

Terra Partners has developed an innovative ground lease structure optimized to provide the lowest cost of leasing land available in the market today. Best suited for properties with significant land value, the Terra Ground Lease provides low GAAP rent expense, operating lease treatment, and is tax efficient when compared to ownership.

What are the economic benefits of the Terra Ground Lease?

  • Economic savings of 14-18% of land value compared to ownership
  • Operating lease treatment for accounting purposes
  • Lowest GAAP rent expense: +/- 2.5% of proceeds fixed for 99 years
  • 99-year term offers long-term control • Flexibility: Right of substitution after five years and purchase options


The Terra Ground Lease is ideal for companies with the following characteristics:

  • $50 to $175 million of land value within a single property or a portfolio of properties
  • A minimum S&P (or equivalent) credit rating of BB
  • A desire to monetize owned real estate and re-deploy capital for core business initiatives, debt reduction, acquisitions, stock repurchase, etc.



The Terra Ground Lease is best suited for properties with significant land value.


Low GAAP and after-tax rent expense: