All Forum Posts by: Susan Anderson

I have a very good attorney for lease agreements. 

I believe I should ask that the interested party to pay for the demolition and also request that rent begins immediately? The letter of intent requests that they have 150 days following permit approval and developers completion of infrastructure to the site.

I don’t think my requests for demolition costs to be paid and rent to start right away are unreasonable? Contractors can get behind.

The listing shows that the road my property sits on has a VPD (vehicles per day) of 21,159. Additionally, 157,272 employees and 10,045 businesses in the area with over 1,000 new apartment units within walking distance. Walmart, Panera, Chipotle, Walgreens, and Starbucks are very close neighbors.

The space available is .52 acres and the asking rate from our real estate agent is 120k/year. 

The interested party is offering 100k per year with 10% increases every 5years (starting on year 6, then 11) with 4 options (at 5-years) to increase the length of the lease.

Does this seem like a decent offer from the interested party? This will be my first land lease with this property. We have always rented our building and the 2 houses. Now that the neighborhood is turning over, I believe a land lease would be the best chance for me to increase my earnings (with less headaches).

Thank you for your comments and input. It’s embarrassing, how little I know…

Susan

1. We will probably double our cash flow.

2. Demo costs will be roughly 50k.

3. We can keep the building at the end of the lease.

4. They are initially offering a 15 year triple net lease with a 10% increase at year 6 and 11…with four (5 year) options.

5. The site is a half acre with direct access to one of the busiest streets in our city. Our property is across from a Starbucks, Walmart grocery store, next to a Chipotle… The neighborhood is turning over and becoming a profitable part of town thanks to a world-class research hospital and medical campus nearby.

Thank you for your advice!

Hello- I own a property located on one of the busiest streets in my city. A franchised coffee business would like to lease my land. Nearby is a Panera, Chipotle, and Starbucks.

Currently there is a cement block building and 2 homes on the land (all owned by me). The interested party would like us to pay for 50% of demolition for the building and 2 homes. I would also need to pay 6% to the realtor who brought the interested party to my attention. 

My realtor cannot give me numbers or information on whether or not this is an acceptable offer for me. Her opinion is only that it is a good offer.

How would I go about assessing this? As you can tell, I am new to land leasing. It would take me about 2 1/2 years for this deal to be profitable for me after my expenses. The land lease would be for 15 years.