Peer case
The ground-lease reset and operator subordination were priced before LOI
How and who for the hotel job—verified when attested.
Job: Read the ground lease and the management agreement
Lease + HMA clauses abstracted pre-LOI
Verified18 / 18
Leasehold tail after extension
Verified46 years
Claim
Pre-LOI abstraction of ground-lease rent resets, remaining term, and management termination rights.
Evidence
Leasehold abstraction memo, lender mortgageability checklist, and signed LOI rider.
Caveat
Commercial underwriting abstraction only — hospitality real-estate counsel still drafts and opines on the estoppel and SNDA.
Situation
A waterfront hotel carried 31 years remaining on a municipal ground lease with a fair-market-value rent reset in year eight and a brand management agreement without a clean sale termination right.
Approach
Redstone Advisory and Sable Desk abstracted the ground lease and HMA side by side before LOI, modeling the year-eight rent reset, lender leasehold mortgageability threshold, and operator performance-test cure rights.
Outcome
Buyer conditioned the LOI on a 15-year ground-lease extension letter and a subordinated incentive-fee hurdle, avoiding an unfinanceable leasehold maturity cliff.
“Reading the ground lease and the management contract before we named a cap rate saved the entire deposit.”
Who did the work
- 8.2
- 8.9