I invest in land and have done entitlement/zoning and other DD work successfully for years.
A broker called me this morning on a property I have on a busy interesection and has a QSR client who likes the location, but does not want to do a ground lease, only a build to suit. Is this something I can do without a development background? Is it as simple as getting the site designed and engineered for the footprint, cleared and graded (all of which I am comfortable with), and then hiring a GC to build the building? Or is it more than that and not something to be done without development experience?
I invest in land and have done entitlement/zoning and other DD work successfully for years.
A broker called me this morning on a property I have on a busy interesection and has a QSR client who likes the location, but does not want to do a ground lease, only a build to suit. Is this something I can do without a development background? Is it as simple as getting the site designed and engineered for the footprint, cleared and graded (all of which I am comfortable with), and then hiring a GC to build the building? Or is it more than that and not something to be done without development experience?
Thanks in advance!
I take it from your comment that your preference is to Ground lease?
We run into this especially at out parcels in grocery anchored centers, and our users generally can't make a ground lease work for the business case so the next best thing does tend to be the BTS or we often do Reverse BTS deals where the majority of the building design and management etc is done by the tenant. this works well if the tenant is a national user or multi unit operator who has built these buildings many times. They generally have the recipe down and just need the deal funded if that makes sense? if its something that interests you I probably have a redacted LOI I could share that outlines the LL's work etc.
I invest in land and have done entitlement/zoning and other DD work successfully for years.
A broker called me this morning on a property I have on a busy interesection and has a QSR client who likes the location, but does not want to do a ground lease, only a build to suit. Is this something I can do without a development background? Is it as simple as getting the site designed and engineered for the footprint, cleared and graded (all of which I am comfortable with), and then hiring a GC to build the building? Or is it more than that and not something to be done without development experience?
Thanks in advance!
I take it from your comment that your preference is to Ground lease?
We run into this especially at out parcels in grocery anchored centers, and our users generally can't make a ground lease work for the business case so the next best thing does tend to be the BTS or we often do Reverse BTS deals where the majority of the building design and management etc is done by the tenant. this works well if the tenant is a national user or multi unit operator who has built these buildings many times. They generally have the recipe down and just need the deal funded if that makes sense? if its something that interests you I probably have a redacted LOI I could share that outlines the LL's work etc.
I wouldn't say I have a preference. I'm just describing the reality of BTS with national tenants, they squeeze margins of the developer down. If any costs go up, developer eats it.