How should I structure a deal as the developer on a piece of land that can only be leased?
I have an opportunity to develop a warehouse with lease back option.  The warehouse is much needed by the company who is also the end buyer who owns the land. They’re willing to purchase it after it is built. They’re also willing to do a land lease as well. They just don’t have the time or resources at the moment. 

I am putting together the capital and resources and contractors  to have it built. Essentially I’m the developer. How should I structure the fees?  How much should I charge as the developer fee?  What percentage? Do I add in a sales commission fee to a sales broker.   What am I missing? 

Ideally I’d like to own the building for over twenty years and sell it back to them since they’re willing to do that as well. They’re open to any structure.
[{"id": "iuri2ba", "text": "You want to own an improvement on someone else's land?", "replies": [{"id": "iuruka4", "text": "He wants a purchase, then sale, then lease. So complicated. \n\nThey own it now? You\u2019re just a few developer. Have them get the construction loan and done. \n\n6% of GMAX. There is no sale.", "replies": [{"id": "ius11n0", "text": "Yes they own the land. Because of red tapes it\u2019s faster for a private investor to build it. They can then land lease it or purchase it and do a leaseback.   We\u2019ll need to lease it it after built. They will agree to buy it back once the ground lease is up.", "replies": [{"id": "ius4cjw", "text": "Are you in the US? Are you talking about multi tenant?", "replies": [{"id": "iusddxf", "text": "Yes in the US. If I do keep it I would lease it out to multi tenant.", "replies": [], "depth": 5}], "depth": 4}, {"id": "iusgrv3", "text": "I gotta be honest man, I think these people are trying to fuck you.\n\nWhat are you going to do after you build this thing with money you have raised? How are you going to negotiate a sale price or a lease on the improvement you built on their land? They already own it, it's on their land. You'll need rights to the land that supports the improvement before you build it, not after.", "replies": [{"id": "iuswdk6", "text": "Thanks for the insight. I plan to have it all contracted agreements. They\u2019re reliable.", "replies": [], "depth": 5}], "depth": 4}, {"id": "iusld2l", "text": "You could always build it for them for a fee", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iusuy12", "text": "The closest I've seen to this (banker perspective) is Company A owns the land, and ground leases it to the developer for a $1 for 50 years.  Developer plans to construct building secures a lease with Company A for the entire space, 20 year NNN, with the option to purchase starting year 7 of operations. \n\nThis isn't an uncommon structure and happens when a company has balance sheet requirements that enact certain restrictions.  \n\nNow the wrinkle not mentioned above is usually these tenants are either credit tenants or the developer is getting a lease guarantee.  \n\nRent is typically set as a % of construction costs, with annual escalations.  Developer fee of somewhere between 4-8%.", "replies": [{"id": "iusw5ay", "text": "Thank you", "replies": [], "depth": 2}, {"id": "iuvanit", "text": "This is the way", "replies": [], "depth": 2}], "depth": 1}, {"id": "iut5i6z", "text": "Or you sign a 99 year lease for minimum cash as their tenant with a favorable termination clause and a condition that they pay at or above FMV for any structure constructed. Then have them sign a lease for a build to spec building that\u2019s like a 10 year plus two five year options or a straight 20. Have them pay re tax upon lease signature so they are carrying the coat of the land before improvements. \n\nDefer to others on the development fee but should only involve commissions if using a broker or when you decide to sell the asset and walk away.", "replies": [{"id": "iutlvmb", "text": "I understand your idea getting a long favorable lease as their tenant after the  structure is constructed part. The part where I\u2019m confused is after constructed having them sign a lease. \n\nYou sound a lot more creative than I. This is my weak point.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iuu8cq0", "text": "Somethings not right with this deal. They don't have resources to build a building?  That means they have debt on the land. So will that debt be subordinated to your lease?  Doubtful.  They dont have the time to do it but they have the time to manage you doing it?  I think if you dig deeper, you'll find out the land is highly leveraged as is their entire company. It just doesn't feel right based off the information you've given.", "replies": [{"id": "iuxidb0", "text": "Sorry I like the angles you\u2019re thinking.  Due to red tapes it would be faster for them to work with a private entity to have this built. Enter me. I\u2019ll put the capital together and get it done. The big risk for me is getting the capital upfront. But the plan is before I build it I would have them sign agreement to purchase once completed. \n\nAnd the biggest question is how it should be structured since we\u2019ll need to utilities the space for our company anyways.", "replies": [{"id": "iuxkuan", "text": "If they can purchase it when it's complete, why can't they fund the construction? Meaning, if they're going to pay you $1 million (number grabbed out of the air), in 8 months when they're done, why wouldn't they just fund the draws that you need to make rather than you going out and finding the $1 million which just makes things more expensive for them?  That's where I'm having trouble.  You being in the middle makes sense.  You raising the capital to build the building so they can lease it back puts a lot of risk on you unless done very carefully and doesn't seem to make sense for them unless they are in dire financial straits.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]