DAYTONA BEACH, FL-Locally headquartered International Speedway Corp., sponsor of the nation’s largest auto racing events, has signed a 47-year lease aggregately valued at $35 million with the Daytona Beach Racing and Recreational Facilities District.

The lease begins in 2007 at an average rent of $500,000 a year and runs to 2054 when the 2% annual escalators will bring the 12-month rent to $1 million. The average annual rent at the three-million-sf Daytona International Speedway will be about $750,000 or an estimated average $11.75 per sf over the life of the lease. The deal is scheduled to close March 28.

ISC owns the 27-year-old track property but not the land. ISC’s original 50-year lease expires at the end of next year. ISC has been paying about $10,000 a year rent. The company expected a 25-year extension to bring the new rent to $20,000 annually through 2032, sources close to the transaction tell GlobeSt.com. However, the racing organization didn’t expect its rent to jump as sharply as it did in the new lease, sources in a position to know tell GlobeSt.com. “Let’s just say they didn’t break out any champagne on this deal,” a Volusia County government source familiar with the lease details tells GlobeSt.com.

Volusia County Council and the Daytona Beach City Commission choose the five members of the Daytona Beach Racing and Recreational Facilities District. The district promotes recreational events and raises funds through lease payments and the two annual antique-car shows. Under terms of the new lease, the district gets a guarantee to use the track 30 days a year and up to 90 days a year if the ISC is not using the asphalt for a professional racing event.

The track is at 1801 West International Speedway Blvd. which has become a hot commercial and retail real estate development area in recent years, local industrial brokers tell Globest.com. Permanent grandstand seating is 168,700. Nationally televised events include the Daytona 500, Rolex 24 at Daytona, Pepsi 400, AMA Supercross, Nascar Busch Grand National, Nascar Winston Cup and Nascar Craftsman Truck.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.