A geospatial modeling system may include a geospatial model database and a processor. The processor may cooperate with the geospatial model database for extracting ground data from foliage and building data, and performing a plurality of noise filtering operations on the foliage and building data including a first loose tolerance filtering to determine an inclusive estimate of building locations and a second strict tolerance filtering to reduce false building locations. The processor may also cooperate with the geospatial model database for performing at least one edge recovery operation to compensate for noisy building perimeters, and separating foliage data from the building data based upon the noise filtering operations and the at least one edge recovery operation.