A triple-net lease, or NNN, is a structure in which the tenant pays the three major property costs, property taxes, insurance, and maintenance, on top of base rent, leaving the owner with a nearly hands-off, bond-like income stream.
Log in to followQSR outparcel, $1,725,000 at a 6.9% cap, 15-year lease just signed, brand is one everyone would recognize. Then I get to the guaranty page and it's an LLC that operates 12 units i…
Two infill land parcels I'd been sitting on for six years finally sold this spring, and the proceeds went into a single tenant drive-thru restaurant pad. Closed about six weeks ag…
I've only bought small apartment buildings, where diligence was an inspection and a sewer scope and I was done for about $900. Now I'm looking at a 12,000 sf retail building with…
Closed six weeks ago on an 8,300 sf small-format discount retail building in a town of about 4,500 in the upper midwest. Corporate lease, investment-grade parent guaranty, 13 year…
Third water heater in two years on my four unit, and I spent a Saturday on the phone about it. That night I ran the arithmetic on a small single tenant retail pad someone sent me,…
An investor group approached me about buying the building my service business operates out of. Freestanding, 6,400 square feet, decent hard corner in a second-tier metro. Their of…
Not buying yet was the plan for most of last year, so I built a screen and ran everything through it. Posting the screen and the deal that finally cleared it, because the eleven p…
I've done a few small value-add residential deals and I'm hitting the ceiling on how much of my week they take. Net lease looks like the answer, except every listing that has a te…
I've spent two years reading here before buying anything, so this is my one purchase and I don't have a pattern to compare it to yet. It's a freestanding QSR pad, about 2,400 sf,…
First deal, and I want to write it down while the numbers are still exact. 8,400 square foot single tenant retail box, auto parts style user, secondary market in the upper midwest…
I closed on a 9,600 square foot single tenant retail box last year, a discount general merchandise user, small town, corporate lease with seven years left. Rent $170,400. I paid a…
Posting this because I bought it partly on advice I got in rooms like this one and the failure wasn't in the math I did. It was in the question I never asked. 11,600 sf single-ten…
Working through a couple of sale-leasebacks that came out of an operator refinancing after an acquisition. In both, the seller-tenant chose the rent, which sets the cap, which set…
I do land and long holds, so this is off my usual path, and that's exactly why I want other eyes on it. A regional auto parts operator with 31 stores across two states approached…
Rural deal, asking $1,340,000, rent $112,500, so roughly 8.4%. Town population about 1,800, the store is the only general merchandise within 20 miles. Lease has 11 years left of a…
This is a small thing next to what usually gets posted here, but it's sitting on my desk this week and I'd rather ask than guess. I own a four unit and a two unit, both ordinary r…
Two things on my desk this week and they point in opposite directions. Deal A. Single tenant pharmacy-format box, roughly 13,000 sf, investment grade parent on the guaranty, 15 ye…
Under contract review right now and I keep circling the same clause. The asset: 9,100 square foot single tenant discount retail box, small upper midwest town, population around 6,…
I'm reading the lease summary on a dollar store building, 9,100 square feet, and the listing says NNN in big letters. Then page three of the abstract says landlord is responsible…
I ran this three ways this month because a client keeps insisting the answer is obvious and I don't think it is. Start with 1.5M of equity and no strong view on rates. A. One 1.5M…