For Kamehameha Schools, being a ‘residential’ lessor for most projects on O‘ahu is not part of its long-term objectives. Kamehameha School began its multifamily leased fee sales program in 1991, nearly two decades ago, selling directly only to lessees. Prudential Locations has been retained to assist with sales of the remaining leased fee interest in hundreds of residential condominium units either to lessees or to investors. (The fee simple condominium apartment unit that is subject to a long-term lease is referred to as the “leased fee” or the “leased fee interest.”)
Investors have the opportunity to purchase the leased fee interest under specific condominium apartment units around O‘ahu, and assume the lessor’s position for those assets.
By purchasing the leased fee, you receive the benefit of lease rent income either monthly or semi-annually, and the ownership of the condominium apartment unit (land and improvements) at the end of the lease term. Pursuant to the lease contract, when the lease terminates or expires, you would own the unit in fee simple and the then lessee is required to vacate the unit. You should have the benefit of the fee simple market value of the unit at that time.
What types of investors would benefit from this opportunity?
- Those that have a longer time horizon for their investment needs.
- Investors who want to use real estate to transfer assets to children and grandchildren.
- Those that would like to own one or more properties by using less cash up front.
- Investors who want to diversify their real estate investment portfolio.
If you are interested in finding out more about leased fee investments contact us.