My family owns a valuable piece of land (10 Acres) on the St Johns River south of Jacksonville. I would never sell this property due to family history but might consider doing a commercial ground lease for a condominium or town home community. Is this a common practice for this type of community? My thought was to receive a condo or town home and dock slip for each of my family members (with all taxes and fees paid by developer) plus a monthly payment in exchange for the land use. Any thoughts on this scenario?
Condos are a form of ownership, so you can't ground lease to them. Apartments for rent would be more feasible, but pretty unlikely because usually the owner handles management and there's no real benefit for a company to come in and land lease an apartment building and have to manage the property. Your best bet is commercial for a ground lease. If you can get in a ground lease tenant, or even a NNN lease, you are way better off.
You could also partner with a developer for the site and thus keeping the land and any improvements in your family portfolio.
@Thomas Hallowes , A partnership like @Derek Carroll mentioned might be an attractive solution. If it is a trophy piece of land on the ICW it might have great potential as a resort type facility. In that event you could have your cake and eat it to - Partner with a builder manager. Retain ownership (or partial ownership). Have suites/rooms available at all time for your family members. And create a very nice trophy retail cash flow opportunity.
Thanks very much for the advice.