Tynan Village Ground Lease

Investment Overview

Newmark, as exclusive advisor, is pleased to present the Tynan Village Ground Lease, a ±254,390-square-foot (±5.84-acre) leased fee interest located at 323 Front Street in Salinas, California, ground leased on an absolute net basis to the Housing Authority of the County of Monterey (HACM) — a public-agency credit underpinned by Monterey County’s ‘AA’ Issuer Default Rating from Fitch. With ±28 years of base term remaining, 1% annual escalations, and five seven-year extension options running through 2090, the offering delivers truly passive, management-free income — and all improvements (171 residential units plus ±13,250 SF of ground-floor commercial) revert to the fee owner at lease expiration.

Investment Highlights

• PUBLIC-AGENCY CREDIT: Ground leased to the Housing Authority of the County of Monterey, underpinned by the County's 'AA' Issuer Default Rating from Fitch
• ABSOLUTE NET STRUCTURE: Lessee pays all taxes, insurance, and maintenance — truly passive income ideal for 1031 buyers
• LONG-TERM INCOME: ±28 years of base term remaining, plus five 7-year options extending through 2090
• CONTRACTUAL GROWTH: 1% annual escalations grow ground rent from $220,996 today to $291,999 in the final base year
• REVERSION OF IMPROVEMENTS: 171 units + ±13,250 SF of commercial revert to the fee owner at lease expiration
• ATTRACTIVE LAND BASIS: $17.55/SF for ±5.84 acres of MX-zoned infill minutes from downtown Salinas and Hwy 101
• MARKET RESETS WITH A FLOOR: Option-period rent resets to prevailing market ground rent (never below the prior year's rent), then escalates 1% annually — upside capture with downside protection