Deal Structure for Leasehold

[thegoat999]

Want to pick apart a few peoples brain, not from the US.

Situation is as is:

Land value: 2.5-3m
Construction Cost: 1.5m
Equipment Value: 1.1m

If you were going to build a car wash on someone else's land, using the figures above, what would be a reasonable lease if you were to front equipment cost and they fronted construction costs?

Commercial Loan rates are 7%~ ATM.

 

[Axxlrod]

So it's basically a build-to-suit scenario and you provide your own equipment. I've seen deals like this, and they charged a rent amount for the land based on current value, and then a rent amount for the building based on a % of construction cost.

Using your numbers, you need a proposed rent amount for what is essentially a $4.5M building.

 

[Kat]

Want to pick apart a few peoples brain, not from the US.

Situation is as is:

Land value: 2.5-3m
Construction Cost: 1.5m
Equipment Value: 1.1m

If you were going to build a car wash on someone else's land, using the figures above, what would be a reasonable lease if you were to front equipment cost and they fronted construction costs?

Commercial Loan rates are 7%~ ATM.

Hi there. I’m a bit random here but I’m new to this site, looking at building my first carwash in NZ. Saw you are from Aus in another post. Would love to see your set up as some of your posts are similar to what I’m wanting to do here in NZ. Would you be keen to post/chat about our set ups? I’m looking at 2xIBAs and 6 SS. Thanks

 

[thegoat999]

Hi there. I’m a bit random here but I’m new to this site, looking at building my first carwash in NZ. Saw you are from Aus in another post. Would love to see your set up as some of your posts are similar to what I’m wanting to do here in NZ. Would you be keen to post/chat about our set ups? I’m looking at 2xIBAs and 6 SS. Thanks

Hey, unfortunately this deal ended up falling through but feel free to DM me, happy to discuss any questions you have or give my opinion