Recent Closings - Triple Net 1031 Exchange Deals

We are pleased to announce the following recent closings: NNN Florida Walgreens: $8,662,371 - Sourced off-market deal through developer and broker network. Record setting cap rate of 4.85%. All cash transaction with 1031 exchange buyer.

Triple Net CVS: $6,450,000 - Low leverage 1031 exchange buyer. 24 years left on absolute net lease - 5.32% cap rate. Solid midwest location.

Net Leased Dollar General: ~ $1MM - high cap rate deal 8%+ with 7+ years on NN lease. Growing SE US location.

For more details or help on your NNN 1031 exchange, give us a ring at 1-866-539-1777.

Not All Walgreens NNN Investments Are Created Equal

On the surface, a Walgreens investment may look like all the other Walgreens. Au contraire mon frere!

Yes, the tenant credit is the same and the square footage is similar. However, there are many variables when comparing different Walgreens investments.

Everyday, we help our Walgreens 1031 clients evaluate and compare different NNN investment properties. Our clients are able to compare apples to apples due to our analysis and insights about which Walgreens NNN property most fits their criteria and investment goals.

Here is a quick list we did to help a Walgreens 1031 client do a side by side comparison of three Walgreens we made offers on. Note the additional data points in the list besides price, cap rate, rent amount etc.

Is the store open 24 hours? Does it have a drive thru? What about beer and liquor? How big is the lot? What are the reported store sales? What does the landlord have to take care of? (not all Walgreens are triple net!) How fast is the population growing? Is the area poor, wealthy or middle class?

Which deal would you choose? Yes, cap rate plays a part in relation to lease term and price but what is the better investment considering the other factors?

We help our clients answer these questions.

On many deals we take it several steps further and drill down the data even more. Other data points we help clients consider when buying a Walgreens 1031 NNN property:

• What are market rents compared to the contract rent? What can the building be leased for now and in the future?
• What is the quality of construction? Brick? Block? Upgraded features?
• What is the competitive environment? Where is the closest CVS or Rite Aid? What about another Walgreens?
• What is the age demographic? Is the area full of young people who are healthy? Or does the area have an aging population that needs prescriptions filled?
• What is the consumer spending potential? Is there underserved demand in the marketplace? Is it over supplied?

We answer all this and more, for you.

Not all Walgreens investments are created equal and neither are the people who sell them.

Make sure you have a Walgreens NNN investment advisor on your side.

Call us at 1-866-539-1777 or email us here for a free Walgreens 1031 or NNN property consultation.

JUST CLOSED: $3.2M NNN 1031 Sleepy's Investment

We are proud to announce another investment property closing! Thomas Morgan, CCIM represented an all cash 1031 exchange buyer in the purchase of a net leased property in Winston-Salem, NC.

The $3,265,000 all cash sale closed in 29 days. The property is leased to Sleepy's on a net leased basis for 12 years. The 1031 investor exchanged from a management intensive industrial/retail property to this hands-off, long term, low risk NNN investment.

The property was a 2014 build to suit for Sleepys and has phenomenal location characteristics with high traffic counts and visibility in the dominant retail corridor.

Sleepy’s LLC is a privately owned four-generation mattress retail company founded in 1931 in Brooklyn, New York, the company currently has over 2,900 employees. Sleepy’s is the second largest specialty mattress retailer and the largest bedding retailer in the US.

The seller was represented by Pegasus Investments out of Beverly Hills, CA.

Please contact Thomas Morgan, CCIM for cap rate details or for information and availability of other triple net 1031 investments. 1-866-539-1777

Other recent closings include a remodel to suit 15 year net leased Arby's, several NNN Dollar Generals and a long term NNN 7-Eleven ground lease.

Get 1031 Exchange Property Information

Property Highlights − Corporate lease with Sleepy’s, LLC − Additional guaranty from HMK Mattress Holdings, LLC (parent co.) − Brand new trophy quality construction − High impact site plan (building built right up to the lot line fronting Hanes Mall Blvd.) − 12 year lease term with minimal landlord responsibilities

Location Highlights − A+ location within the heart of Winston-Salem’s Hanes Mall retail core − Irreplaceable Sam’s Club outparcel property − Phenomenal site lines and visibility − Excellent access from both Hanes Mall Blvd. & Stratford Road − Nearly 500,000 population and $64k average household income within primary trade area − Surrounded by super regional anchors including Costco, Sam’s Club & Target − New $20 million “The Lofts” development under construction down the road brining new population − Shared drive aisle access with Sam’s Club, Chick-Fil-A, Verizon, Jared Jewelers, PetSmart & Gander Mtn.

Tenant Highlights − Sleepy’s, LLC is the largest bedding retailer and the second largest mattress retailer in the United States − Tenant current employs~2,900professionals − Tenant has over 900 retail locations in sixteen states from Maine to North Carolina, primarily in the Northeastern, Mid-Atlantic and the Midwest − 10 distribution centers located throughout the country delivering over 3,000 mattresses daily − In 2009, Sleepy’s was named the fastest-growing furniture retailer in the US

1031 replacement property- try a NNN net leased property

Need a 1031 replacement property for your 1031 Exchange? Forever leave the day to day management of your office building, apartment building or other gross-leased property behind.

Invest in a "hands-free" net leased property and spend your time doing what you want rather than dealing with tenant's needs.  Triple net leased properties (NNN) provide long term cashflow without the headaches of management.  Let the property work for you rather than you working for the property and enjoy the benefits of "mail box money".

Contact TMO to find out more about the benefits of Triple Net Leased Real Estate Investments. 1.866.539.1777

Here are just a few of the reasons why you should buy a NNN property for your 1031 exchange:

• armchair investment- ease of management with tenant maintaining and operating the property
• mail box money-  your monthly rent is yours, net to you, no expenses to pay
• long term cash flow-  leases usually range from 10 to 25 years
• high credit tenant- financially strong tenants usually publicly traded
• good appreciation-  regular rent increases provide for increase in future value
• non-recourse financing- lenders will loan on credit of tenant and strength of lease, waiving a personal guarantee by you as buyer
• easier to sell- when time comes to sell, demand is almost always strong for a NNN leased property, even in down markets
• higher residual value- net leased real estate is usually built-to-suit for retailers who have researched the market and location to find the best site to do business

Contact TMO to find out more about the benefits of Triple Net Leased Real Estate Investments for your 1031 exchange.

What is Triple Net NNN? Here is triple net lease definition

CVS NNN For Sale - Available NNN deals

CVS NNN deals continue to be in hot demand. Long term net leases of 20 or more years with a solid credit rated and no landlord responsibilities. CVS NNN make great 1031 Exchange replacement properties.

Here is a quick list of CVS NNN properties for sale that have been of interest to our NNN clients and may be of interest to as well.

CVS NNN Properties For Sale

Call 1-970-618-4086 for more info on these CVS NNN Properties For Sale.

The Vitamin Vault - Walgreens in Historic Bank

This is a Walgreens store located inside a historic bank building in Chicago. It has been a very talked about redevelopment project including Huffington Post and Forbes. I came across this photo on Instagram:
from Instagram http://bit.ly/1qGCAPW
via jorgemus
The Vitamin Vault #chicago #architecture #bank #walgreens #farmacy #vitamins #vault #door #metal #health #shopping #design

Here is an exterior shot before the signs went up:

How To Find The Best NNN Properties For Sale

Finding a good selection of NNN properties for sale is not as easy as you might hope. Because there is no reliable central repository of commercial listings, the NNN properties for sale in the market are typically spread across a number of different resources, only some of which are freely available to the public.

Internet Listings of NNN Properties for Sale

There are a few sites which present NNN properties for sale as well as other commercial real estate listings. The two best known, Loopnet and Costar Exchange, are in the process of merging. Both allow just about anyone to post listings of NNN properties for sale, as well as other property types. While Costar lets anyone search its database, Loopnet only gives full access to paying subscribers. The key problem with these sites is that many of the best NNN properties for sale never make it on to them.

Principal Listings of NNN Properties for Sale

Many principals, whether they are owners or developers, list their own NNN properties for sale on their websites. CrestNetLease and Kimco Realty are two such ownership groups that do this, and Bencor Development is an example of a developer that posts its NNN properties for sale right online. Although direct principal to principal marketing can yield you access to inventory, it is a great real of work to visit each of these sites. In addition, because you do not have an expert guiding you, you may not know which of the NNN properties for sale that you see are good deals and which are not.

Hire A Professional Broker to Bring You NNN Properties for Sale

The easiest way to find NNN properties for sale is also the best way. Instead of spending your time to scour the Internet to find just a small subset of the NNN properties for sale out there, hire a broker and let him do the work for you. Your broker should have not only a strong knowledge of all of the places to look for NNN properties for sale, but should also have insider access to listings that you may not be able to see. In addition, he should be able to guide you to not only good NNN properties for sale, but to the best NNN properties for sale for you and your specific needs. In addition, because most sellers will pay your broker’s commission, the service and guidance that he brings you should not even cost you anything.

{ Article: How to Choose the Best Triple Net Broker }

Buy a NNN Property

Or call Thomas Morgan, CCIM, a Triple Net NNN Broker, at 1-866-539-1777

The Pros and Cons of Triple Net Properties

In some ways, triple net properties are as much fixed-income investments as they are real estate vehicles. Offering little to no management responsibility and long-term fixed incomes with the potential for gradual increases, they act like bonds. However, underlying their financial structures, they are still real estate and carry the same eventual risks and challenges. Here are some of the pros and cons of triple net lease properties.:

Pro: Stable Income Con: Limited Upside Triple net leases are usually structured with a flat rent or with fixed increases. When you buy a $2,000,000 property at a 7.5 percent cap, you know that you can count on $150,000 per year for the life of the lease. Many triple-net properties also have rent increases of 1 to 3 percent per year built-in. They provide some growth, but don't necessarily keep up with inflation. However, this is no different from buying a corporate, Treasury or municipal bond with a fixed rate of return.

Pro: Long-Term 100% Occupancy Con: Risk of 100% Vacancy Most triple net properties come on the market with a lease of at least 10 years, with some having initial terms as long as 25 years. This gives you a long time during which you don't have to worry about partial or full vacancy. The drawback is that when the lease does expire, it's an all-or-nothing proposition. The same occurs in the event of a tenant default, although careful due diligence before purchase can reduce the risk of this occurring.

Pro: Attractive Cap Rates Con: High Price Relative to Underlying Value Single tenant properties typically trade at attractive cap rates that are hundreds of basis points above comparable non-real estate investments. They're also frequently priced lower than more traditional investment real estate alternatives on a cap rate basis. A large portion of their value comes from their income stream, though, meaning that they could lose value when vacant or as their remaining lease term decreases.

Pro: No Management Con: CapEx at Rollover True triple net properties are structured so that the owner has no responsibilities whatsoever during the lease period, while others transfer some capital expenditures to the owner. In either case, the ownership experience is very different from traditional real estate. However, when the lease rolls over, owners have to get involved in the re-leasing process and in any necessary capital expenditures to prepare for a new tenant.

What do you see as the benefits and risk?

Buy a NNN Property

Contact Thomas Morgan, CCIM Triple Net NNN Broker at 1-866-539-1777

NNN Properties and Your Future

NNN properties are a popular avenue for commercial real estate investment. These are typically single-tenant retail properties where the tenant is responsible for paying real estate taxes, providing their own property insurance and taking care of all property maintenance. Tenants take care of these expenses in addition to other monthly costs such as rent and utility payments. Part-time investors can find NNN properties to be an appealing real estate investment option. It offers a guaranteed stream of income from a real estate investment while also absolving the investor of carrying out many day-to-day management responsibilities for the property.

Other advantages NNN properties offer are significant. An investor can lock in a long-term lease with a tenant who sets up shop in NNN properties. They can enjoy tax benefits that come from investing in commercial or residential real estate. Finally, successful NNN properties can act as a gateway for securing additional financing to use on other investments.

There are risks in leasing out triple net properties to the wrong tenant. An investor needs to know how to identify a good tenant versus a bad tenant. Assessing the worthiness of any tenant requires an investor to examine a company's business model and the state of its finances. Signing up a tenant in haste can result in disaster for any investor.

A company's credit rating offers an indicator of risk for default. While no investments outside of a federal bond offer a zero percent default rate, a tenant possessing an investment grade credit rating presents less of a risk for NNN properties.

Leasing NNN properties to a company essentially provides them capital. An investor needs to know if their tenant can guarantee long-term success with that capital. Investors should examine multiple criteria when choosing tenants for their triple net properties. They should examine a company's debt to equity ratio, operating margins, the number of stores it operates, the outlook for that industry and how the company is managed.

Investors in NNN properties should also take into account other factors. A successful investment can hinge on everything from location and building size to economic conditions for a particular industry. Triple net properties work best for a smart investor who buys in the right location and selects a low-risk tenant.

Knowing local market conditions is essential for any serious investor. It is important to pay attention to everything from the employment rate to median income in a community before selecting a property. A bad investment can leave an investor with an empty building that is essentially a money pit.

In the end, NNN properties are a great passive income investment that produce low risk yields of 7% or more with little investor oversight and involvement. Contact Thomas to find out more about NNN properties or to buy/sell a NNN property: 1-866-539-1777 or e-mail.

TMO sells $12M Walgreens Property

In mid August, TMO represented the buyer of a northern California NNN Walgreens property. The property sold for $12,184,846 and is leased on an absolute triple net basis to Walgreens (Ticker: WAG) on a 75 year lease with 24 firm years remaining.  The buyer was a privately held real estate investment company from New York who was in a 1031 Exchange.  The seller was represented by Capital Pacific's San Francisco office.  The low leverage transaction was financed by Lafayette Life Insurance Company  which was placed by Ed Isola from Isola & Associates.

For further details about the cap rate and financing terms, please contact Thomas Morgan, CCIM via email or toll free at 1-866-539-1777.

Buy a NNN Walgreens

We sell Walgreens throughout the entire U.S.! Ask about a FREE no obligation NNN consultation.

Contact TMO to find out more about the benefits of Walgreens Real Estate Investments.

1.866.539.1777

Why are drug dealers the best tenants?

Owning commercial investment property is a great pleasure especially when you have good solid tenants.

Marijuana pays the rent.

In Denver and California commercial retail property owners have found that "pot dispensaries" have filled vacant spaces in the down economy.

"Looking at California, the pioneer state of medical marijuana, shows how great the demand really is for medical marijuana. One study reported that Los Angeles county alone has over 800 marijuana dispensaries."

But the "high" does not last forever.

Considering pot is still illegal, it may be time to find another tenant.

What about a drug dealer that has $72 billion in revenue and a S&P rating of A?

This is not your back alley drug dealer. This drug dealer in on busiest corners. Has well lit parking lots. Incredible signage. Is open 24 hours an has 7,830 stores worldwide.

This drug dealer is Walgreens.

As a commercial property investor looking for long term passive income, you have to consider a Walgreens.  Walgreens typically signs 75 year leases.  Walgreens has the best locations. Walgreens leases are true triple net meaning the landlord has NO responsibilities. Absolutely none.  The owner sits back and deposits the monthly rent.

Triple Net Walgreens range from $4M to $12M and easily produce a 6%+ annual yield for an all cash purchase. Non-recourse financing is easy to obtain especially at 60% or less LTV at sub 5% interest rates which can increase the overall annual yield to 8% or better.

Here are some triple net Walgreens currently for sale around the US.  Contact TMO for more information on any of them or to set up a free no-obligation real estate investment consultation.

Walgreens NNN Real Estate For Sale

Walgreens NNN Real Estate

• PA
• $6,770,000
• Cap Rate: 6.50%

Absolute-Net Lease of 75 years. "A" Credit Rating by Standard and Poors.

Walgreens NNN Property

• OK
• $4,950,000
• 6.61% cap rate

Located in the Oklahoma City MSA, Investment grade tenant, Over 22 years remain on lease, Adjacent to I-40 interchange

Walgreens Triple Net Property

• FL
• $10,915,000
• Cap Rate 6%

Rare rent increase, absolute NNN lease, daily traffic count exceeds 44,500

Walgreens Triple Net Real Estate

• FL
• $3,304,000
• 5.75%

75 years simple Ground lease, irreplaceable corner location

Walgreens Net Leased Property

• IL
• $5,578,000
• 7.35%

Established Walgreens Location Operating Since 1957. 60 Years Lease - Strong Store Sales. Less than One-Mile from Advocate Trinity Hospital.

Great NNN real estate.

Contact TMO about these NNN Walgreens. Toll free 1.866.539.1777 or e-mail.

[gravityform id="3" name="Quick Contact" description="false"]

Walgreens NNN For Sale

Walgreens real estate remains a highly sought after NNN investment.  Walgreens provide long term stable cash flows usually on an absolute net lease basis with no landlord responsibilities. Walgreens has a S&P credit rating of "A". Here are several NNN Walgreen deals I have come across in my buyer searches over the past few weeks.  Please email or call me at 1.866.539.1777 for additional information on any of these NNN Walgreens for sale.

Walgreens NNN For Sale Litchfield, IL $4,511,200 6.65% cap rate 14,820 Square Feet, Minutes from Lake Lou Yaeger, Excellent Hard Corner Location with High Visibility, Adjacent to Litchfield Plaza Shopping Center, Irreplaceable Litchfield Location, Adjacent to Hampton Inn and Holiday Inn.

NNN Walgreens For Sale Hutchinson (Wichita), KS $4,945,000 Price 7.00% cap rate Over Fifteen (15) years remaining on Twenty-Five (25) year NNN lease fully leased and guaranteed by Walgreen Co. (S&P: A),  7.87% Average Yield.

Walgreens NNN Affluent Westchester County $11,455,000 6.40% cap rate Offered free & clear, but many great loans available,Prime New York Metro real estate, Mature suburb of New York City

Walgreens Investment New York, NY $6,538,461 6.50% cap rate Located adjacent to Hartwick College, a prominent private college in the region,Strong credit tenant - Walgreen Co. (S&P A/Stable)

Walgreens NNN For Sale Phoenix Metro $5,500,000 5% cap rate Trophy asset, 10% rental increase every 10%, America's #1 Drug store, Excellent demographic

Contact TMO for more details on any of the above Walgreens NNN properties and net leased NNN property deals via email or phone at 1.866.539.1777.

Deals are a sampling of available Walgreen NNN inventory from around the US and are for reference only. Subject photos may not be actual location and are representative of Walgreen locations in general.

How to Select the Best Triple Net Broker

Given that a net-leased investment typically costs millions of dollars, finding a good triple net broker is particularly important. Working with a good triple net broker will give you better access to inventory, better financing, and a better investment result. Here are a few things to look for in your quest for a top-line triple net broker. Fundamental Knowledge Many of the triple net broker firms in the market lack a solid understanding of the fundamentals of an NNN investment. Look for a triple net broker who knows the difference between a double net, a triple net, and a "true" triple net lease. Your triple net broker should also understand the credit rating system, as this will help them, and you, measure the risk of a given tenant.

Access to Inventory A strong NNN broker will have a large and diverse inventory consisting of a mixture of their own listings as well as properties offered by other triple net broker companies and off-market deals. This will let you choose from a number of different properties to find the right mix of lease terms, lease length, and tenant quality.

Access to Financing A good triple net broker knows that the lender can make or break the deal. As such, you should look for a triple net broker who either has an in-house commercial mortgage broker or a strong relationship with an outside broker. Your triple net broker should also understand the many different financing options available, including bank financing, life insurance financing, conduit debt and the "CTL" credit tenant lease programs that provide long-term fixed rate debt for NNN assets.

Client-Focused Business Your triple net broker should take some time to get to know you and your goals. They should then show you appropriate property. If, for instance, you express a desire to have long-term stable income and your triple net broker shows you properties with five or fewer years remaining on the lease, you may want to select someone else. Watch for a NNN broker who does not attempt to saddle you with more debt than you want. Although some debt carries a number of benefits, it also carries risk, and a good triple net broker will help you strike the right balance.

Experience Your triple net broker should have a few deals under his or her belt. Although some of the most active triple net broker teams in the company focus on seller representation, there are a large number of good buyer representatives who have amassed a large resume of experience. Work with a triple net broker like that, and if they have a well-respected designation, like CCIM, that is an additional plus.

Contact TMO to find out more about the benefits of Triple Net Leased Real Estate Investments. 1.866.539.1777

TMO sells another net leased TSC

TMO has just closed on the sale of a NNN property in Fayetteville, NC that is net leased to Tractor Supply Company.   The sale price was just over $3.2M nearing an 8% cap rate.  TMO represented the buyer who is a private investor.  The seller was represented by Brad Moulder and Ryan Butler of Stan Johnson Company (fellow CCIM's).

Buy a Tractor Supply NNN Property

The property is leased on an absolute net basis to TSC for another 10 years ensuring a long term passive investment for the owner.  Tractor Supply Company is an operator of retail farm and ranch stores in the United States.  As of December 25, 2010, the Company operated 1,001 retail farm and ranch stores in 44 states and had sales over $3B.

TMO provides clients with passive investment opportunities like this around the U.S.  Net leased properties give investors peace of mind, long term stable cash flows with very low risk.

Contact TMO for a free investment evaluation via email or toll free at 1.866.539.1777

You can see all the pictures of the property on TMO's flickr stream.

TMO sells $2.24M net leased Tractor Supply

TMO is pleased to have represented a private investor in the purchase of a NNN leased Tractor Supply property in Sweetwater, TX.  The all cash transaction closed in under 30 days for $2,242,500 at a cap rate of 8%.

Buy a Tractor Supply NNN Property

"Tractor Supply (TSCO) is a great reliable tenant with a solid business model which provides my client with peace of mind for years to come." says Thomas Morgan, CCIM.  "TSC's may be in smaller markets but that is where their customers are and they serve the rural farming towns perfectly.  Compared to a NNN Walgreens or fast food NNN investment, TSC's have a lot of residual value in the real estate as they are on large lots, usually 4-5 acres and have decent size buildings of around 20,000 sf built of block."

Lior Regenstreif of Marcus Millichap represented the Seller.