Kislak Uses Unusual 98-Year Ground Lease for Rutherford MF Deal

RUTHERFORD, NJ—The Kislak Company Inc. helped a client use a novel 98-year ground lease to take control of the Union Bridge Apartments, the largest multifamily property in Rutherford, with 115 units located at 152 Grand Avenue and 153 Darwin Avenue. The tranasaction included an initial payment of $9,980,000 and will include annual payments of an undisclosed amount over the life of the lease.

“There was no change of title, that’s something that the owner was very specific about,” Kislak vice president Andrew Scheinerman tells GlobeSt.com exclusively. “Because it was 98 years, the bank treated it like a normal mortgage, 75% financing, and my buyer will pay the owner a ground lease payment every year. Over the course of the next 98 years, this is a $70 million lease, essentially.”