Net Leased Properties Apt CA-Commercial $3M- $3M+
Single Tenant Net
Leased Properties
What is a NNN Lease?
The Triple-Net Lease Definition
In a triple-net lease, the
tenant pays all the ongoing operating expenses, property taxes, utilities,
insurance premiums, maintenance and repairs. Meanwhile, the landlord gets to
collect monthly net rental income just as he or she would with a traditional
real estate investment. Such a lease usually extends over the long term, with a
financially strong corporate entity guaranteeing a lease span of 10 to 25 years
+ Lease Options.
Why Triple-Net Leases?
Real estate investors
usually consider triple-net properties as a very good investment option. That's
because they are one of the most liquid and secure real estate ventures
available. Not only do they usually sell quickly, but the tenants who opt for
such properties are normally high-qualified and creditworthy.
Most large
enterprises prefer leasing property over owning it. Why? Because by doing so,
they save on real estate venture capital. They then use that extra cash for
other core business activities. To compensate for their lack of ownership, they
usually associate the leased property with their corporate identity and image.
Therefore, they prove to be great tenants who want their building to represent
their ideal image. In addition, they pay their taxes on time, they keep the
property in good shape and they maintain the basic facilities. Moreover, they
find it more viable to possess physical control alone over their premises than
to own it outright with their own capital commitment. The commitment of both the
landlord and the quality lessee associated with these triple net properties,
ensures the long-term appreciation and security of both
parties.
Triple-Net Leases as 1031 Investments
Triple-net leases
are also a very good option for those individuals who are looking for a 1031
investment. Single-tenant 1031 net leased properties are a very practical and
successful investment option. A triple-net lease via a 1031 exchange will allow
the investor to realize even higher returns. How? By deferring his or her taxes
and thus increasing his or her overall internal rate of return.
Triple-net leased properties are usually single-tenant, retail, or
industrial properties. They are long-term leases that are typically extended to
corporate tenants. A few examples of such corporate tenants are Blockbuster,
Federal Express, Home Depot, Family Dollar, Wal-Mart, AutoZone, and Applebee's.
These tenants use triple net leases for one very good reason: A net leased
property means ownership control is maintained without having to bear the
expenditure of up-front cash.
NNN Lease-
Advantages
Net. Net. Net. No landlord
responsibilities
1-1031 NNN exchange properties can relieve owners from
day-to-day management issues.
2-Steady income-stream potential paid by a
corporate tenant.
3-A long-term lease to a corporate tenant with credit
rating usually makes it easier to get a mortgage loan at favorable rates.
4-Net Leased Properties usually are located in superior
locations.
5-NNN Lease properties may have appreciated residual values
because they are most often built for retailers who have researched the market
to find high density, middle income areas with attractive traffic patterns.
Why NNN leases should align tenants and landlord interest ?
Many
regional and national companies choose to lease their business property. Leasing
the property gives the occupying companies the ability to control their physical
environment without the financial commitment of ownership. By leasing the
property, companies free up their corporate funds for business expansion and
improvement. A NNN leases gives the companies control over the property they
occupy without the capital commitment of ownership.
Many real estate
investors own their properties as a sidelight to their full-time jobs, and have
little time to devote to their real estate investments. As baby-boomers approach
retirement, they seek to eliminate the hassle of active property management, and
take advantage of a more passive income approach. Triple-net lease properties
can provide appreciation potential as well as a secure monthly income without
the landlord responsibilities normally associated with real estate ownership.
Many "burned-out" landlords turn to net-lease real estate as the property
investment of choice.
The Triple Net properties are normally in short
supply and usually on the market a very short time (sometimes only a few days)
many investors submit a Letter of Intent as soon as they know there is a
property they would like to acquire. Upon acceptance of their offer they will
have a thirty day period to inspect and then accept or reject the
property.
Register to obtain
property offering brochures: State the property, price and location
along with your name, phone and fax numbers. Property brochures can be
e-mailed to you in pdf or html document. If you prefer us to fax
offering brochures, please indicate. E-mail works best because there are
usually
color photos and maps. You are welcome to e-mail or fax us your
investment criteria,
and we will automatically send you property brochures
that fit your criteria.
Contact
MeSelling
Broker:Frank Kao 949-856-9857 direct
Kingsamerica Realty & Mortgage corp
661 Wald
Irvine, CA
92618
Office: 949-727-0900