HUNDREDS OF INVESTORS AROUND THE WORLD PURCHASE NET LEASED REAL ESTATE AND MOST OWN MANY PROPERTIES

Net Leased Properties represent the real estate sector that “lost the least value (during the recession) and rallied the quickest.”
~ The Wall Street Journal 2010

What is a Single-Tenant Net Leased investment property? 

Typically it is a freestanding office, retail, or industrial building that is leased by a credit tenant for numerous years. Depending on the lease, tenant usually maintains and is responsible for the entire building and parking lot including all insurance costs and property taxes. Triple Net is a term that refers to the tenant paying all costs of the lease such as taxes, insurance and common area maintenance (CAM) and in many cases tenant is responsible for the entire property including roof and parking lot replacement along with integrity of the structure (Absolute Triple Net).

Why acquire Single Tenant Net Leased, NNN, Net Leased and Triple Net Leased real estate?   

1. Minimal if any property management required by owner/landlord;

2. PREDICTABLE returns on money unlike the constantly fluctuating stock market. The stock market is not only incredibly volatile, it is very irrational, and no matter what stock brokers say, performance of a company's stock is not directly related to the peformance of the company. In real estate, its value is usually derived directly from the income the real estate produces. The thinking of investors needs to be refocused on the fundamentals of good business and acquire Single Tenant Net Leased, NNN, Net Leased and Triple Net Leased properties instead of throwing too much money at the terribly volatile and irrational stock market;

3. Many of the properties have long term leases from ten to twenty-five years which means little if any tenant turnover and releasing responsibilities;

4. Many of the tenants are national and international companies with outstanding credit;

5. Favorable tax consideration with owner/landlord able to deduct depreciation of the building (consult with a Certified Public Accountant).

What are the range of prices of Single Tenant Net Leased, NNN, Net Leased and Triple Net Leased properties?

Kohl's                $7.0M to $20M

Walgreens        $3.5M to $7.0M

McDonald's       $1.8M to $4.0M

AutoZone          $1.0M to $3.0M

Jack in the Box $1.5M to $2.3M

The above price ranges can change depending on the property's market demographics and where the property is located.