United States
US owners have the richest menu: contribute land for LP equity and let the waterfall pay you first, or keep the fee simple and sign a 99-year ground lease that pays rent forever. Never sign a subordinated ground lease without understanding you could lose the land.
Miami 21 FLR + Live Local bonuses set the envelope; underwrite insurance loads and FIRPTA on foreign exits. TX: entitlement risk low, carry cost = property tax.
- Title system
- County deed recording + private title insurance (no state guarantee); ALTA survey/escrow closings.
- Foreign ownership
- Open federally (FIRPTA 15% withholding on foreign sellers); state 'countries-of-concern' bans: FL SB 264, TX SB 17 (2025); CFIUS near military sites.
- Authorities
- County recorders + municipal planning/zoning: Miami 21 form-based code; Houston no zoning; Austin/Dallas conventional.
- Zoning metric
- Miami 21 FLR by transect (T6-8 ~5 up to T6-80 core) + public-benefit bonuses; FL Live Local Act density preemption; Texas FAR/height districts or none.
- Height control
- FAA flight-path caps; Miami 21 transect storey caps; Austin view corridors; few Texas limits.
- Building code
- Florida Building Code (Miami-Dade HVHZ wind) — IBC family; Texas local IBC adoptions; post-Surfside condo inspection laws.
- Approvals & timeline
- Miami site plan + permit ~8–16 mo (Live Local expedited); Texas 3–9 mo (Houston fastest); rezonings add 6–12 mo. (~6–16 months)
- Transfer taxes & fees
- FL doc stamps ~0.6–0.7% + title premiums; Texas: no transfer tax but heavy property tax (~1.6–2.2%); FIRPTA on exit.
- Foreign capital
- EB-5 ($800k TEA) as golden-visa analog; FinCEN beneficial-ownership reporting in Miami; insurance cost now central to underwriting.
Common JV structures
Land-as-Equity SPV
20–50%Owner conveys land into a new project company at an agreed value; that value becomes the owner's equity stake. Developer and investors contribute cash and expertise; profits distribute through a waterfall (capital back → preferred return → promote).
Ground Lease JV
4–6%Owner keeps the freehold and grants a 49–99 year lease. Developer builds and owns the improvements for the term, paying ground rent (often ~4–6% of land value, with resets). Land and buildings revert to the owner at expiry.
Option Agreement
75–90%Developer pays a small option fee for the exclusive right (3–10 years) to buy the land after securing planning, at market value minus an agreed discount (typically 10–25%).
Forward Funding / Forward Sale
5–15%An institution buys the land day one and funds construction in draws (forward funding), or contracts to buy the completed building at a fixed price (forward sale). The developer earns a development margin; the owner usually exits cleanly at the land sale.
Landowner Mezzanine / Deferred Consideration
8–15%Owner sells to the developer's SPV but leaves 30–70% of the price in as a loan (second charge behind the senior lender) or as deferred payments tied to sales milestones — the owner becomes the project's mezzanine lender at ~8–15%.
- ⚠ Florida insurance + condo assessment crisis
- ⚠ Rate-sensitive capital stacks
- ⚠ Tariff-driven material cost volatility
Insurance and tariffs are the two live cost variables.