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Ground Lease Sourcing
Identifying land positions beneath long term tenants for investors seeking bond-like income.
Ground lease sourcing identifies land positions beneath long term tenants for Orange County investors seeking bond-like income. This service focuses on ground lease outparcels where investors own the land and tenants own improvements, providing predictable NNN income with minimal management responsibilities. We evaluate ground lease terms, tenant credit, and lease duration to ensure replacement properties meet 1031 exchange requirements. The sourcing process includes coordination with qualified intermediaries to structure compliant exchanges within the 45 day identification and 180 day closing timelines. Orange County investors benefit from access to ground lease opportunities that provide stable, long-term income streams.
What is included
- Ground lease opportunity sourcing and evaluation
- Lease term and rent structure analysis
- Tenant credit verification and security assessment
- Property value and lease expiration impact review
- Qualified intermediary coordination for exchange structure
- 45 day identification deadline tracking
- 180 day closing timeline management
- CPA and attorney collaboration support
Common situations
- Orange County investor seeking bond-like income with minimal management
- Family office diversifying into ground lease portfolio for stable cash flow
- Investor preferring long-term ground lease income over property management
Frequently asked questions
What is a ground lease and how does it work in Orange County, CA?
A ground lease occurs when an investor owns land and a tenant owns improvements on that land. Orange County investors receive ground rent payments while tenants maintain and operate the improvements, creating bond-like NNN income streams.
What identification rules apply to ground lease properties?
Ground lease properties must be identified within 45 calendar days after closing your relinquished property in Orange County, CA. The same three property rule, 200 percent rule, or 95 percent rule options apply to ground lease identifications.
How is boot calculated in ground lease exchanges?
Boot occurs if you receive cash or if debt replacement creates a shortfall. We structure ground lease transactions to minimize boot by matching debt levels and ensuring all consideration qualifies as like-kind property for Orange County investors.
What lease terms are typical for ground lease outparcels?
Ground leases typically range from 20 to 99 years with fixed or escalating rent structures. We evaluate lease terms to ensure Orange County investors understand income projections and lease expiration impacts on property value.
How do you verify tenant credit for ground lease properties?
We review tenant financial statements, credit ratings, and operating history. For Orange County investors, we verify tenant creditworthiness and assess ground lease security before recommending properties as replacement options.
Do California transfer taxes apply to ground lease acquisitions?
California transfer taxes apply to ground lease properties located in California. A 1031 exchange defers income tax but does not remove transfer or documentary taxes. Orange County investors should budget for transfer taxes when acquiring in-state ground leases.
Example of the type of engagement we can handle
Example capability
Service type:
Ground Lease Sourcing
Location:
Orange County, CA
Scope:
Source ground lease outparcel opportunities for $2.5 million exchange
Client situation:
Investor closing on Huntington Beach property seeking passive ground lease income replacement
Our approach:
Identified four ground lease opportunities, evaluated lease terms and tenant credit, analyzed rent structures, coordinated qualified intermediary setup, tracked identification deadlines
Expected outcome:
Two ground lease properties identified within 45 day window, underwriting completed, closing coordination underway
Contact us to discuss your situation in Orange County, CA. We can share references upon request.
Educational content only. Not tax, legal, or investment advice.
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Identification rules
Three Property Rule
Identify up to three candidate properties anywhere in the United States, regardless of value, within 45 days.
Two Hundred Percent Rule
Name more than three properties as long as the combined value stays within 200 percent of the relinquished sale price.
Ninety Five Percent Rule
If you exceed those limits, acquire at least 95 percent of the total value identified to keep the exchange compliant.
Identification letter helper
Identification Letter 11/16/2025 Qualified Intermediary, Please accept this written identification for my pending Section 1031 exchange in Newport Beach, CA. Replacement properties: 1) ____________________ 2) ____________________ 3) ____________________ I confirm these properties meet the like-kind and value requirements as of today. Signature ____________________
Timeline tracker
Day 0
Close relinquished property in Newport Beach, CA.
Day 15
Secure intermediary receipts and wire instructions.
Day 30
Begin physical and financial due diligence on preferred assets.
Day 45
Submit identification letter with up to three properties.
Day 90
Lock financing, finalize PSA adjustments, order closing docs.
Day 180
Complete closing with escrow and intermediary coordination.
1031 Exchange Orange County
Kick off Ground Lease Sourcing today.
Share your timeline and we will deliver compliant identification support within one business day.