Lifetime Parking Easement On Vacant Land
I am brand to to rei and stumbled upon a piece of land-for-sale">land for sale. It is 1.7 acres across the street from a restaurant. The owner of the restaurant owns the property. He is very motivated, but wants an easement for parking at night.(7pm) The property is zoned comercial for a strip mall or office building. Without the parking the guy has like 15 spots on the restaurant lot, so he needs this parking. But a building I would put up could be open atleast some nights to 8pm. also. how would I evber sell it with this easement attached to it .Any Suggestions would be appreciated.
You put your finger on the problem. If you buy the parcel and give the restaurant guy an easement to use X parking spaces, that could hurt you 2 ways. First, in getting land development approval, the municipality will probably require a certain # of parking spaces based on floor SF. You may not be able to fit enough spaces to satisfy both the municipality and the restaurant. Second, when you go to sell, the restaurant's easement could devalue your property. Maybe the restaurant guy should just construct a parking lot on the parcel.
thanks for the post. I spoke with the restaurant owner today. I told him I couldnt give an easement he said he would take a ten year lease. with ption to renew. I have to find out how many spaces I need. I would then treat him like a tenant. Assuming I could satisfy the towns requirements and his, do you think I would have a problem selling with a lease.
Perhaps it's just me, but I am reluctant to suggest that people install improvements (including structures) on land they don't own, particular on a lease as short as 10 yrs. Perhaps Lucius would be enthusiastic if it were at least a 50 year lease.
Nancy,
I think Art means that the restaurant guy offered to sell the property to him if Art gives the guy a 10 year lease on parking...??? Is that right Art? You would then be the owner and then the other guy would just have a parking lease? If you have the space to create enough parking as well as meeting his needs I don't think it would hurt your resale value. The two key components for me would be, 1) How many spaces do you need to meet the needs of the tenants in your proposed shopping center as you need to meet their needs first, and 2) How much extra will it cost you to create the extra parking spaces for the restaurant guy? You need to make sure that your parking lease would create cash flow to justify the added expense, time, and energy.
A good idea to add to Woodsong would be to let the restaurant guy help pay for the parking lot.
ED
what great advice .you are right I would own the property and lease the space to him. Having him pay for the extra space plus is a great idea. Now how do I go about finding out how many spaces are available on this piece of land. Do I hire an architect now? I dont know what the time line is for this sort of project. Any Input would be greatly appreciated.
The number of parking spaces required will be a function of the type and extent of use you will be trying to get municipal land development approval of. You indicated, I think, that the property was zoned for commercial. The zoning ordinance for the particular commercial use you want to pursue will lay out requirements for instance, for building coverage, setbacks, bldg height, lot coverage, landscaping, and off-street parking. The number of spaces will be dictated by the type of facility you propose to develop and may be measured by gross floor area of the buildings, among other standards.
Your civil engineer would do a layout of the property, showing the location, size, etc. of your proposed commercial facility, and other required info such as buffers, landscaping and parking, as well as the parking for the restaurant. To figure out how many parking spaces will fit on the property, your engineer will have to do a sketch or concept plan to see how everything will fit.
woodsong,
Thanks for clarifying that it is the restaurant who would be the tenant.
thanks so much for the responses I will keep you all updated. On Monday I will call the building dept and find out the name of a civil engineer to do a sketch to see how many spots can fit on the property