Developing a retail park on leased land

[hugofisch]

Hello,

Recently I came across an interesting opportunity of developing a retail park on a plot of land that a current owner doesn't want to sell but is willing to go in on a long-term lease. Honestly, I have never worked on such a scheme and therefore, I would like to know whether anyone has any tips on how to set up such a deal. My main concerns are:

- How to set up a sufficient rent for the landowner while keeping the project's DSCR on a sufficient level?
- What types of situations should I think of when constructing a lease agreement with the landowner?
- In what way would be a financial model in this case different from a regular buy and develop scheme? How should I look at the ratios now?

Thanks in advance.

Best regards,
Hugo

 

[zivakrealtygroup]

A land lease is an agreement that allows tenant to use a piece of land by landlord in exchange of rent. So, if you are interest in such deal you can consult to some expert real estate agent.