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NNN
Net Leased Net Leased Investments
A NNN Net Leased (Triple-Net) investment also called a sale leaseback
is an investment where the NNN Net Leased property is purchased by the
investor and leased back to a single tenant occupant. Rents increase periodically
and lease terms are long, usually 15-20 years from purchase. All NNN Net
Leased operating expenses including taxes, insurance and maintenance are
the obligation of the tenant; the owner enjoys income net
of these three costs. Tenants in NNN Net Leased sale leaseback investments
are credit worthy regional or national based companies that occupy and
conduct business from the subject location.
CRC Investment Properties works with several reputable NNN Net Leased
investment brokers and sponsors. We advise our clients on the purchase
of only those NNN Net Leased assets which we believe provide investors
with the most favorable conditions, including: |
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Investment
grade B or better credit tenancy |
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Competitive
NNN Net Leased pricing on square foot and cap rate basis |
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High
quality NNN Net Leased property location with secure market fundamentals |
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Simple
and favorable NNN Net Leased lease terms and conditions |
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Steady
NNN Net Leased rental increases and income growth |
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Why
NNN?
NNN Net Leased investments give the passive investor a stable, growing
income stream over a long period of time, with no management. The NNN
Net Leased investor is not required to invest capital to insure, improve
or manage the property. And, since there are no operating expenses the
NNN Net Leased income stream is not impacted by future tax, insurance
or maintenance price increases.
With NNN Net Leased quality credit tenancy, investors benefit from a management
free asset with minimum risk and high income security. NNN Net Leased
Investors have rental increases as a hedge against inflation and foundation
for increased value. Tax advantages may also be realized through accelerated
depreciation.
NNN Net Leased leasebacks provide unique investment benefits, including: |
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Corporate
guarantee of NNN Net Leased property rental income |
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Ownership of entire
NNN Net Leased investment with no partners
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Simplified
NNN Net Leased single lease (loan and escrow) transaction |
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Lower
interest rates and better terms with high NNN Net Leased credit tenant |
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Competitive
NNN Net Leased yields averaging 5-10% annual net cash on cash |
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High
NNN Net Leased residual value and investment liquidity |
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NNN
Net Leased Marketplace
NNN Net Leased investments, estimated at $50 billion US comprise one of
the largest segments of the corporate leased commercial investment property
market. At any given time there are as many as 20,000 NNN Net Leased properties
available. NNN Net Leased capitalization rates (annual net income/price)
average from 5-9% depending on credit risk, location and value of the
income stream. NNN Net Leased properties will vary by cap rates and yield
based on credit of the guarantor, age, performance location and other
factors of the property and market. The higher quality NNN Net Leased
deals still command premium prices.
There are also a growing number of larger NNN Net Leased asset opportunities
for institutional acquisition, including Tennant In Common sponsors and
principals, REITs insurance companies, pension funds and other institutional
buyers.
The private NNN Net Leased investor market continues to be the most aggressive
participants for NNN Net Leased single tenant properties. Approximately
60% of available NNN Net Leased net leased investments are priced under
$3 million, making this option viable for investors who wish to own the
NNN Net Leased property individually. |
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NNN
1031 Real Estate Investment Tax Deferred Exchange
The 1031 Tax Deferred Exchange (1984 Tax Reform Act) is a technique that
allows NNN Net Leased investment owner to sell their property, reinvest
equity and profits into another like kind property (most real
estate except primary residence) and defer federal and state capital gains
tax. NNN Net Leased investment owner/participant must identify up to 3
exchange property options within 45 days of the sale of the relinquished
(down leg) property. They need to close the 1031 Tax Deferred
Exchange purchase of one or more of the selected properties (up
leg) within 180 days. An equal or greater amount of debt on the
replacement property(s) is required. Partial Real Estate Investment tax
deferred exchanges are allowed; sellers pay tax on any funds (boot)
not re-invested.
1031 Tax Deferred Exchange leveraged Real Estate Investment growth including
NNN Net Leased investment properties is realized by re-investing into
a replacement property. Using the entire amount of equity and profits
from the exchange, investors can acquire substantially more replacement
property be it a NNN Net Leased investment or other property type. Its
estimated that every dollar saved in taxes allows an investor to purchase
3-5 times as much real estate.
We assist our clients in high yield NNN Net Leased investment 1031 Tax
Deferred Exchange opportunities which offer: |
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Predictable
monthly cash flow |
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High
quality, secure, long term tenancy |
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Hassle
free in-place management |
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Risk
mitigated underwriting |
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Steady
appreciation in asset value |
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