Lease Terms
- Property purchased for cash at full market value
- Fixed leaseback rate schedule with annual rent increases of usually only 2%, making the lease costs increasingly attractive over time.
- Base lease term - usually 10 years, plus renewal options
- Multiple options to renew in 5-10 year increments
- Additional financing available for property improvements, including planting and replanting.
Purchase Option Terms
A purchase option is provided at the end of the lease period and each renewal period, with the option price and terms tailored to your needs.
The option price can be set at a fixed price or a formula price, which provides an opportunity to realize potential appreciation in property value with no invested capital.
Alternatively, the option price can be based on the option exercise-date market value, to qualify the lease as an off-balance-sheet operating lease.