A ground lease refers to a long-term lease of real property which at the outset of the lease may be unimproved. The Bank may be approached by the ground lessee to finance construction of improvements (office building, retail shopping center, etc.) on the real property. In exchange for financing the construction of improvements, the Bank obtains a mortgage on the leasehold estate of the ground lessee and the improvements being constructed. The office building, shopping center or other structure falls into the category of leasehold improvements. This is a complex area of financing and Bank Counsel should be consulted at all stages on the transaction.