How much is a hangar worth?

masloki

masloki

Pattern Altitude
Joined
Aug 23, 2011
Messages
2,138
Display Name
Display name:
Nunya
Current owner wants to sell and offered it to me for X. No other hangars for sale at the airport, and I vaguely recall his asking is in line with what I saw last year. How would you go about determining the value?

In this case, hangar is owned by a corp, and you buy and sell shares in the corp so no real estate transaction history to be found.
 
If it's the same as you recall from a year ago. Jump on it


Here the prices have tripled in two years. $80k for a t hangar.
 
masloki said:
Current owner wants to sell and offered it to me for X. No other hangars for sale at the airport, and I vaguely recall his asking is in line with what I saw last year. How would you go about determining the value?

In this case, hangar is owned by a corp, and you buy and sell shares in the corp so no real estate transaction history to be found.
Click to expand...
I think that the value would be determined by you. What is it worth to you. Cost to rent vs. cost to buy might provide some help but in the end is it worth what he wants for you to own this hangar. Is it on an airport lease? With how many years left. There is no KBB for hangars
 
This is my dream dilemma. I love the opportunity to own rather than rent just about anything i need.
 
masloki said:
Current owner wants to sell and offered it to me for X. No other hangars for sale at the airport, and I vaguely recall his asking is in line with what I saw last year. How would you go about determining the value?

In this case, hangar is owned by a corp, and you buy and sell shares in the corp so no real estate transaction history to be found.
Click to expand...
The same thing everything else is worth. What you can get for it. Or what you have to pay to get it.
 
Hangars can be difficult to appraise their value, especially in smaller markets. Their value is impacted both by the limited use, as well as the limited pool of potential buyers.
 
masloki said:
…..In this case, hangar is owned by a corp, and you buy and sell shares in the corp so no real estate transaction history to be found.
Click to expand...

$3/share. Make sure you get at least 51% of the shares.

While I don’t know anything about this nor did I sleep in a holiday inn express last night, but I have been binge watching Shark Tank.
 
masloki said:
Current owner wants to sell and offered it to me for X. No other hangars for sale at the airport, and I vaguely recall his asking is in line with what I saw last year. How would you go about determining the value?
Click to expand...

Bold is mine above. Supply and demand. If your gut feels right, go for it. How badly can you possibly get hurt?

(Edit: Wow, not sure English Teacher Mom would be proud of that last sentence. Oh well, there it is.)
 
To get a decent response, you’d need to provide more details:

1) public vs private airport
2) desirable location? Waiting list for hangars for rent? Corporate traffic, tower, fuel, FBO, quality of airport runways etc
3) duration of lease, is an extension being discussed?
4) quality of the proposed hangar and ramp in front
5) size of hangar, middle or end unit, height of ceiling, door type, insulated? Furnace? Electric? Water? Nearest toilet? Does the hangar look nice on the outside, T hangar or box, normal shape or weird shape, condition of interior, expoxy floors? Any office space built up, anything else? What is the seller leaving? Tools, shelving, hoist, etc? Does it have internet?
6) friendliness of airport and airport staff, do they maintain the grounds, cut the grass, snow removal, how long does it take?, etc
 
Location is the key to appraising the value.
 
Wow big news!

NealRomeoGolf said:
How long is the land lease on it? That would be a big factor.
Click to expand...
This.

Also, if it’s comparable with KARR, they Sky Haven is often public about their hangar prices. Might give you a sense of the market. Additional factors that might increase how you value that hangar includes your next best choice is renting at KPWK for $550/mo.
 
AoACowboy said:
The land lease and the management of the airport are #1-10 on a list of importance, get everything in writing and record all phone calls with management

I had a T hangar, needed some work, the land lease was about up, I had a talk with the manager of the public airport who said no problem they’d just renew, we’ll I did a good amount of work on the hangar, time to renew came around and they converted to a rental and got my work for free, manager couldn’t recall the conversation. Dumb on my part, and it cost me a few grand, just be careful with the land lease and the town workers associated with the airport.
Click to expand...

Which airport was this at? Did it make the media?
 
kaiser said:
Wow big news!


This.

Also, if it’s comparable with KARR, they Sky Haven is often public about their hangar prices. Might give you a sense of the market. Additional factors that might increase how you value that hangar includes your next best choice is renting at KPWK for $550/mo.
Click to expand...

Someone told me they waited 10 years to get a hangar at KPWK. I sent a few enquiries and never got a response either. I’m guessing they are full to capacity?
 
mandm said:
Someone told me they waited 10 years to get a hangar at KPWK. I sent a few enquiries and never got a response either. I’m guessing they are full to capacity?
Click to expand...
Last I heard they were the only ones near Chicago with space. I could have old info.
 
So…. Here’s the deal. The elephant in the room.

its WHO ya know. I know, I know, shocker.

I’ve been on a list at one small airport for FOUR years, lots of polite asking, actually visiting the mayors office, etc. NOTHING. Seen a couple people get hangars I KNOW FOR A FACT came along well after me.

I just got a hangar at a field where I KNOW FOR A FACT I came along well AFTER another guy. Don’t worry, I actually arranged for that guy to get one before me (the guy I use as a data point).

It’s a shady business. Generally with good intentions, just not how it works out. Until I land a job managing this sort of thing, I don’t know how to fix the issue….

What’s a hangar worth? It’s probably THE CLASSIC what is it worth to you. More than most other things by far. It’s about a monopoly situation. Just can’t do alternatives as easily as most things. The most relevant factor, in my opinion, how bad can ya get hurt? They fill, sell, rent, at the drop of a hat. Period. Even if the airport closes, they’re generally cheaper than anything of equivalent size.
 
Tools said:
So…. Here’s the deal. The elephant in the room.

its WHO ya know. I know, I know, shocker.

I’ve been on a list at one small airport for FOUR years, lots of polite asking, actually visiting the mayors office, etc. NOTHING. Seen a couple people get hangars I KNOW FOR A FACT came along well after me.

I just got a hangar at a field where I KNOW FOR A FACT I came along well AFTER another guy. Don’t worry, I actually arranged for that guy to get one before me (the guy I use as a data point).

It’s a shady business. Generally with good intentions, just not how it works out. Until I land a job managing this sort of thing, I don’t know how to fix the issue….

What’s a hangar worth? It’s probably THE CLASSIC what is it worth to you. More than most other things by far. It’s about a monopoly situation. Just can’t do alternatives as easily as most things. The most relevant factor, in my opinion, how bad can ya get hurt? They fill, sell, rent, at the drop of a hat. Period. Even if the airport closes, they’re generally cheaper than anything of equivalent size.
Click to expand...

I won't say this never happens, I'm sure it does at some airports. However, I work hard at my airport to not let this happen, yet I still get accused of it from time to time. We maintain a waiting list, and go by the waiting list when vacancies open. We try to police unauthorized sub-leasing as much as possible, but it isn't hard to circumvent that if the airplane is in an LLC, and they produce a piece of paper showing said hangar renter as a shareholder in the LLC. I know its BS, but legally my hands are tied.
 
Hope I didn’t come across as TOO “this is across the board”, not my intention!

But it ain’t uncommon! And as I said, it’s a tough fix. Ya just can’t codify “fair” effectively.
 
A nearby airport has had me on their list for a number of years. I'm told that airport "residents" i.e. those that tie down on the ramp (tarmac? lol) get put ahead of those on the list that are not on the ramp. A recent new pilot went there and will be moved into a hangar ahead of me because he's tied down there. I guess this makes sense but I also know that the well known, connected folks with money and position manage to get into a hangar ahead of John Q. Public that goes in and puts their on the list. Just the way it is.

I'm blessed to have a few places to keep my plane inside an enclosed hangar but the distance to them is the factor. The local airport is about 5 minutes from the house.
 
A critical point here is you are buying a corporation. You need a lawyer, and probably an accountant as well, involved to be certain you don't incur any liabilities, debts or tax obligations of the corporation.
 
You must log in or register to reply here.
Back
Top