Friday, October 29, 2010
Palm Beach Gardens, Florida - We have seen investors become dissatisfied with the problems associated with the stock market over the past few years. More and more investors have become familiar with Net Lease Properties. Net Lease Properties offer the ease of owning commercial properties that are occupied by national tenants who are often credit rated, using the contract of a triple net lease with a long-term.
We are seeing many Real Estate Investment Trusts (REIT) and foreign Investors acquiring available net lease properties. We see some REITs and private investors with a strategy of Net Lease Properties at 85% of their Investment Property Portfolio. A net lease property investment is under contract whereas the lessee is bound by to pay any expenses related to the ownership of the property, including but not limited to utility bills, building repairs, annual taxes and insurance needs. Triple Net Lease Properties "NNN" are still our most desired investment holdings, as explained below.
Triple Net Lease Properties, also known as "NNN" deals are typically single-tenant retail properties leased to Investment Grade tenants. A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance on the property. In addition to any normal fees that are expected under the agreement (rent, etc.) being paid by Tenant, this offers the landlord a Net Lease Investment with no responsibilities.
Net Lease Investments are in high demand and are a great source for Investors active with a 1031 exchange and 1033 exchange. There are plenty of benefits of Net Lease Investments such as using a 1031 tax deferred exchange. Unlike other investments, commercial real estate is a great tax saver and helps you defer capital gains tax by using the 1031 tax deferred exchange. Also possible with net lease investments is that financing could be in place which can be assumed to meet the debt/equity requirements of Section 1031.
We would like to touch on the topic of sale-leaseback Net Lease Properties transactions. The sale-leaseback market is beginning to show signs of recovering. Investment Property sales had slowed in the past 2 years, according to Real Capital Analytics (RCA). This affected the sale-leaseback market. In many cases Corporations will dispose of their commercial real estate through a sale-leaseback transaction. The sale-leaseback allows them to extract equity out of their commercial real estate and deposit it into their business. Companies that want the extra capital available and the flexibility of leasing should consider a sale-leaseback.
If you are in position to get into a sale-leaseback with your Publix Net Leased Properties, Walgreen's Net Leased Properties, McDonald's Net Leased Properties or other "NNN" Triple Net Lease Properties, CONTACT US. We have a list of Investors desiring to purchase Investment Property with a sale-leaseback of Investment Grade Credit Tenants.
CONTACT US HERE for a solid recession resistant net lease investment. Also contact us to sell your existing Net Lease Properties portfolio.
When you are purchasing Commercial Real Estate or a "NNN" Triple Net Leased Property, you can apply for CTL Financing, Non Recourse Loans and Commercial Loans at Loanrise.com.