Daytona Race Track Owner, ISC Sign 47-Year Lease

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.