Trying to sell billboard with unusually high income.
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[{"id": "dhnk1rz", "text": "you need to find someone who understands billboards.\n\nI'm trying to buy one down here in South Florida and the property broker had no clue why I don't think why a low 4 figures monthly income from the board being rented to one of the big cos wasn't a big deal", "replies": [], "depth": 1}, {"id": "dhnmwse", "text": "What is he asking for the board? ", "replies": [{"id": "dhnv7je", "text": "$2,681,000\n\nLittle over a 7% cap. \n", "replies": [], "depth": 2}], "depth": 1}, {"id": "dhnnwar", "text": "I understand the business very well but i am just looking for someone to buy it. That's what I was tasked with. ", "replies": [{"id": "dhnsgg6", "text": "if it doesn't have a locked in annual NOI, you got problems, fam. sell it to a big billboard co that will manage it professionally. ", "replies": [{"id": "dho4grl", "text": "I agree. The same type of people who buy billboards buy investment real estate (at least here). If a guy is looking to place $2,600,000 and he has the option of short term \"leases\" being paid out of a companies advertising account with almost no barrier to move at a 7% cap or a shopping center with longer term leases where the company is paying with their occupancy budget and has a high barrier to move at a 7% cap, which do you think they'll pick? You can call Lamar and be done with it, or database other billboard owners and try to sell to them. ", "replies": [], "depth": 3}, {"id": "dho6f51", "text": "It will produce at least $190k a year in NOI. It has room to grow rental rates. So it actually has upside that you might not have with a commercial NNN lease. Some contracts are long term like 2019 but most are annual contracts. \n\nRight now Lamar advertising is only looking in top 25 markets for new assets to acquire.\n\nIt's hard for you to understand just how unique this opportunity is until you see it in person I guess. \n\nI am appreciating the feed back though from you guys. ", "replies": [{"id": "dho7mf1", "text": "How much did the billboard cost to construct?  Are there long term contracts in place for advertising?  Is there any nearby real estate that I can use to build my own billboard?", "replies": [{"id": "dho7xza", "text": "It was a static board for 15 years prior to changing the face over a little over 2 years ago. The board is in Branson, MO. Right now there is a moratorium on putting up new static and digital billboards. So you cannot put up any new boards within city limits. That is one of the things that makes this board very very special. There is very limited spaces city wide for digital and out board is on a corner coming back from Silver Dollar City the single biggest attraction for the town. Also the corner is a stop light corner and it can back up for a long time exposing tourist to the board for extended periods of time. It's not just regular everyday customers this board is marketing to. I would say 99% of those that pass the board in spring,summer, and fall have a strong interest in looking at the board. ", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dhnnxm7", "text": "Is that 19K or 190K per year and where in the Midwest is it?", "replies": [], "depth": 1}]