Lease Evaluation Information

To better serve you and to help us determine a fair market assessment of your lease value, please fill out the following information. Cornerstone understands the need for confidentiality so please rest assured that this information will not be disclosed with another third party. At your discretion, Cornerstone will gladly sign a Non Disclosure Agreement.

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Call Us: 800-285-9790

Why should I sell my billboard lease agreement when I am accustomed to receiving an annual rent payment?

Top Valuation Paid: While billboard lease prices fluctuate, Cornerstone Capital is currently offering top capitalization rates (CAP rate), for billboard leases which qualify for our underwriting standards.

Immediate Cash Payment: In today’s uncertain economy there are no guarantees for future rents. Billboard companies are removing signs and reducing rents to make ends meet. A lump sum payment today eliminates the risk from your future lease value.

What is a billboard easement purchase?

An easement is a no possessory interest in another individual’s land that entitles the holder only to the right to use such land in the specified manner. Simply put, this is a real estate transaction which separates usage of the small piece of property underneath and the air rights above where the billboard is installed.

Do I still have ownership and access to the rest of my property?

Yes – most billboards are located in non developable areas of a property or at the edge of a lot. In most cases creating an easement still allows you use 100% of your property and does not interfere with development purposes. Our easements even allow you use of the land under the billboard. We only require no interference with access to the billboard or blockage of visibility of the sign.

Can I sell my property without interference from the easement?

Absolutely – and you keep 100% of the proceeds from the easement sale. Savvy landowners maximize profit from their property by creating an easement prior to selling their property. If you sell the property without an easement you are most likely not receiving top Cap rate for the lease. Additionally, in many cases billboards are viewed as a negative to a property. Separating the billboard from the property may increase your salable value on the market.

Is Cornerstone going to take over the billboard?

No – although we do own and manage billboards around the country our business objective is to own billboard easements, not the signs. We hope to have a long and prosperous relationship with the billboard company who owns the sign.

What tax advantage can I receive?

Long Term Capital Gains: If you have held your billboard lease for more then 1 year you qualify for long term capital gains tax benefits. Current capital gains taxes range from 0-15% depending on your income bracket. With Congress continually tweaking investment tax laws, these rates are likely to increase in 2010. Since most people will pay less tax on their long-term gains, financial experts recommend taking advantage of today's lower rates when they fit into your portfolio plans.

1031 Tax Exchange: Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. Today’s real estate market is providing excellent opportunities to purchase undervalued property. You can now use your lump sum lease payment to purchase an equal or greater real estate investment as a means to diversify and increase your portfolio.

How is my lease valued?

We use present market CAP rates to determine easement purchase value. Factors such as billboard location, length of lease, rate of lease, lease terms and credibility of the billboard company are used to determine fair market value.

How long does it take to finalize the easement and receive my lump sum payment?

Once a price is agreed upon and Cornerstone receives all of the necessary paperwork, it typically takes 30 days to close on this type of transaction. The transaction is similar to any other real estate sale minus any costs and a fraction of the paperwork.

What is Cornerstone’s business model?

Cornerstone Capital works exclusively in the billboard industry. We have created a portfolio of billboards and billboard easements around the country which we use for investment purposes. Similar to a mutual fund, our vast portfolio of billboards and billboard easements allow us risk diversification minimization while allowing us to secure financing at attractive rates.

Cornerstone Capital – Frequently Asked Questions