Net Lease Market

The idea of managing a triple net (NNN) lease property probably doesn’t make sense to a lot of real estate investors. After all, the tenant has 100% responsibility for the maintenance of the property and the owner simply receives a check on the first of the month, right? Management-free ownership may be the case for many NNN lease properties, but in some situations the fine print of the lease will add a few caveats that the inattentive landlord can stumble over if he is not careful.....

Those looking to acquire banks should bet on one with good credit and that’s expanding, such as TD Bank. Schorsch says his firm has bought millions of dollars of net leased assets in the past four to seven months, and these have averaged cap rates in the mid- to high-7s, all essentially investment grade. “It’s almost like it was in 2006, but now the cost of debt is 2.5% it was a lot higher in ’06. We’re seeing a dramatically better spread than before, and the market couldn’t get better. There’s nothing that could happen to make it better than it is today.”

Betty Friant, Vice President at Calkain Companies, recently brokered the sale of a NNN leased day care facility in Gainesville, VA for just over $4 million at a very attractive 8.64% cap........

"This transaction cements the dominance in the sale leaseback, triple net lease investment market by Calkain Companies,” says David Sobelman, executive vice president at Calkain. Sobelman brokered the deal.......

http://www.calkain.com/podcast/ep002-20130412podcast.mp3

Cap rates continue to remain low at years end. Overall all retail sectors, a slight increase was recorded - sliding from a 6.87% average in October to 6.97% in November. A few other segments also showed slight increases such as restaurants - 7.01% to 7.10% - and dollar stores - 7.31% to 7.45%. However, these increases are slight and we do not anticipate many bold movements going forward.....

Calkain Companies, a national net lease real estate brokerage firm, recently brokered the sale of two triple net lease investment properties as part of a 15-month 1031 exchange assignment. The acquired net lease properties include a Wawa ground lease located in North Wildwood, NJ, and an Applebee’s restaurant located in Merritt Island, FL. Both assets were purchased in the fourth quarter of 2012, and totaled nearly $8MM in value......

Net Lease Press Releases: Credit Union Net Lease Deal In VA

Global Net lease Investments News Net lease company Calkain Cos. is steadily growing its international footprint...

Global Net lease Investments News

Net Lease Press Releases: Net Lease Brokers Sells Bank of America Ground Lease

But again, given how NNN leases are structured, ground lease investing can also offer savvy small-cap real estate entrepreneurs opportunities to generate even better returns through active trading strategies – or embracing re-tenanting risk under the right circumstances.

Purchaser acquires a shopping center for a 7% CAP rate and excludes a McDonald’s pad from collateral when obtaining her loan for acquisition. Subsequently, the developer sells the McDonald’s pad to a NNN investor for a 4.5% CAP rate. Assuming a McDonald’s rent of $100,000 per year, the developer can purchase the pad for $1.43M (7% CAP rate) and can sell it for $2.22MM (4.5% CAP rate), thus creating $800,000 in value by capitalizing on an arbitrage opportunity and selling off theMcDonald’s outparcel separately.

NNN Leased Investment: Rates Continue to Dip for NNN Lease Investments

The seller was a regional real estate developer. As a preferred developer for Dollar General, the same seller has engaged Calkain to sell another store in Halifax, VA. These Dollar General properties have been developed as part of Dollar General’s build-to-suit program. The stores have brand new 15-year NNN net leases, which provide passive income for the new owner.

www.calkain.com

The challenge for investors has been the fact that there aren’t enough desirable properties on the market to feed existing demand, says Jonathan W. Hipp, president and CEO of Calkain Cos., a Washington, D.C.–based commercial real estate firm specializing in triple-net lease properties. When such properties are available, they are priced at a premium. That’s why most net lease specialists expect to see more company acquisitions like the Realty Income/American Realty deal and more IPOs as stock market investors become more aware of the advantages of net lease REITs.