The scenario is the following:
The land lessor wants to lease their ground on a 100-year ground lease.
They want annual escalations in ground rent at 3.2% (their estimate of the
inflation rate). If the land value in a "for sale" scenario is $5,000,000,
what should the year-one ground rent payment be? We would very much
appreciate it if anyone out their who understands the economics of this type
of calculation would have a suggestion for a structure that would make
sense.