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 Kao714-478-8868 direct
E-Mail:
frank@kao.us
Kingsamerica Realty & Mortgage corp
California
Department of Real Estate #01183888
15520 Rockfield Blvd.#B
Irvine, CA
92618
Office:
949-829-8828
