The Real Deal Miami

Selling condos with master leases

June 23, 2009 03:43PM

As developers in places like New York and Miami look for ways to sell off condo inventory, some are turning to guaranteed income assets, also called master leases. Broker Rodrigo Nino, founder of Prodigy Network, has started using these leases, in which the developer leases out or promises to lease a condo, puts up to three years worth of rent in an escrow account, and then sells the property to an investor, who is guaranteed rental income at least until the money in the escrow account runs out. Nino is using this method to sell units at William Beaver House in Manhattan.