• Landmark Capital Out of Home Lending Program

    Jeffrey Knyal, Vice Chairman, Landmark Dividend, LLC.

    You’ve probably encountered Landmark as a buyer of out of home leases and easements.  Landmark also provides financing to out of home companies, secured by billboard loans and easements.  Insider talked to Jeffrey Knyal, Landmark’s Vice Chairman, about Landmark’s billboard financing products and ground lease optimization programs.

    Jeff, tell us about Landmark’s billboard financing product.

    We’re very excited to offer out of home operators financing for development, acquisitions and recapitalizing existing debt.  Our preferred method is to create a “lease, lease-back” which allows us to provide capital to the operator in exchange for having a second lease on the site in addition to the underlying ground lease.  The payments made on the second lease help provide an interest for us to use as collateral while also allowing the operator to get long lease terms and favorable payments.  In cases where the operator owns the land, easement, or has the opportunity to purchase the easement from the property owner, Landmark will also package this into the lease often resulting in a much more favorable long-term fixed payment and also giving the operator control over the location.

    An example of a recent transaction completed was for an operator in Las Vegas named, Las Vegas Billboards (LVB).  In this multi-million $ transaction, Landmark structured long-term leases and advanced capital on existing locations which was used for the acquisition of new digital billboards and for refinancing debt.

    What size transactions is Landmark looking for?

    We’re open to just about any size transaction but we’re really seeing a lot of opportunity in the $500K-10MM range projects. We also have the capability to close large transactions.  Last year we closed on a $35 million large scale bulletin at a newly developed location.

    What types of leases are you most interested in as collateral?

    It works best for both parties if the leases do not have a revenue share and have less than 30% rent to revenue.  However, so many leases are site-specific that we’ll review just about any opportunity because there are often ways to make a deal fit.  As an example, some inner-city locations have a higher rent to revenue situation and we will consider these projects.

    What are the closing and financing costs.

    Because we have so much flexibility with the structural characteristics of each deal, our financing costs are very competitive.  Also, Landmark nearly always covers closing costs.

    What is the collateral and what happens when the loan is paid back?

    Deals are almost always backed by the assets being capitalized.  After the term runs out, obligations are naturally extinguished in a very clean, concise manner.

    Can you tell us about your Lease Extension and Rent Reduction programs for operators?

    Landmark has developed a specialized program for outdoor companies whereby their real estate staff log onto an online portal and price out leases for buyout.  Prior to closing, the lease is amended and the term of the lease is extended for a longer term and sometimes perpetually.  The operator sets the easement purchase price and conducts the negotiation with the land owner.  This gives the operator control over their ground.  In some cases, a rental reduction is possible.  Operators who have leases that are expiring in a few years can use this program to their advantage and extend their leases out for the long-term.

    Who should an out of home company contact if they want more information?

    West: 

    Kale Speaker

    213.814.4759 | Office

    East:

    Chris Artman

    603.782.4836  | Office

    Lease Extension and Rent Reduction Program

    Graeme Kavanaugh

    646.964.6710 | Office

    General Inquiries

    Jeffrey Knyal

    310-294-8190 | Office


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