Asset management firm Kawa Capital Management has launched Ground Lease 2.0, a new investment platform that will expand the company's existing exposure to ground leases. The firm will deploy capital on ground leases in secondary and tertiary markets, and it is offering attractive terms with 70% loan-to-cost.

"We have seen a surge in demand for ground leases. We got into this space five years ago, and we have completed 28 transactions with more than $1 billion in transaction value," Jacques Holzmann, director at Kawa Capital Management, tells GlobeSt.com. "Over the last two years, there are a lot more competitors.

Holzmann welcomes the competition, which he says will only help to increase activity and awareness about the niche asset class. "I think that is a good thing because there are more people to educate the market," he says. "There are more people looking at the ground lease as an alternative form of financing. As banks and lenders get comfortable lending on leaseholds, the market continues to ramp up."