Amount of due diligence on master lease w/ option

What amount of due diligence would be needed on a master lease?  I am looking at a turnaround park.  Appears initially that it is mismanaged, but will be digging a little deeper.  It brought me to this question that I can’t find the answer to.  Obviously no appraisal needed, and I probably wouldn’t want a phase 1 until I actually am looking to become the owner, right?  Anything else that would wait until I exercised the option?

You are correct – until you buy it you are just a manager effectively. You can wait on the Phase I and other reports if you want, but what if you have done all that work and find out that it’s contaminated? I would do the Phase I up front, as well as a review of the title to the park – anything that would preclude you being able to exercise your option. Appraisal is a waste of time because your goal is to make the value much higher.

Frank, you bring up a great point about the Phase 1.  Thank you for your input.