Tuesday, January 18, 2011
Oakland, California - Our Net Lease Properties news today comes from the Bay Area, of California. We have many NNN Lease Investment Buyers looking for quality restaurant fast food properties for their Investment needs. However, AutoZone and other Auto Supply net leased properties have come of age. A NNN transaction from Oakland involved Equitas Investments, out of Hermosa Beach, California. Equitas Investments purchased a single-tenant (STNL), net-leased property with a great location. This triple net leased property might have been a hard sale for most NNN commercial real investors. As this triple net leased property had approximately two years left on the net-lease. As many NNN commercial real estate investors want long terms net leases, Equitas Investments jumped on this NNN deal.
The seller of this NNN Lease Investment was a charitable trust. This Kragen Auto Parts in Oakland, was marketed for approximately $1.8 Million. The triple net leased property was originally acquired from the commercial real estate developer in 1997. The NNN lease Investment is a 8,000 square foot retail property with a lot size of 32,000 square feet. The short term net lease presented Equitas Investments the opportunity to buy the NNN property at fair price. As we mentioned above the NNN Lease Investment was marketed at $1.8 Million but the closing price was not mentioned. Also, there was not information as to if the Seller of this triple net lease property was involved in a 1031 exchange.
This "NNN" triple net lease property is a freestanding building that is currently net-leased to CSK Auto Inc. for a Kragen Auto Parts store. Kragen O'Reilly Auto in net lease terms also talked that they would be receptive of renewing the net lease. This is an absolute NNN lease whereas the Tenant pays all taxes, insurance,and maintenance of interior and exterior. The Triple Net Leased Tenant is also responsible for the parking lot. Tenant has expressed interest for a new lease now. O'Reilly Automotive, Inc. announced planned purchase of Kragen/CSK Auto, Inc. on April 1, in 2008. O'Reilly Automotive, Inc. has the Nasdaq Symbol: ORLY.
Many Commercial Mortgage Lenders do not like to lend on NNN commercial real estate with very short lease terms remaining. This is why NNN commercial real estate buyers need to be able to pay all cash, or have their Investment Property financing previously arranged. The benefits of this Triple Net Leased Property is that it is at the signalized intersection of two of the most highly trafficked thoroughfares in Oakland. This triple net lease property is only a short distance from Oracle Arena & McAfee Coliseum, which are home to the Oakland A's and NFL Raiders.
Equitas Value Company is an affiliate of Equitas Investments, LLC and were established on the same core values of integrity, honesty, and trust. Equitas Investments and Equitas Value (referred to as “Equitas”) are both exclusively focused on small to mid size retail commercial real estate. They believe that an asset class is ready to compete favorably against other asset types. This strategy is over the long-term pursuit of risk adverse, generational core real estate with stable cash flow growth opportunities, and value add assets with significant profit potential through repositioning, releasing and redevelopment.
We have NNN Commercial Real Estate Buyers who like retail properties, and need 1031 Exchange property replacements. Contact Net Lease Properties to sell your net lease properties or purchase NNN Investment Property.
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