Triple Net lease Property Sells for over $4MM

Triple Net Lease Market

Triple Net lease Property Sells for over $4MM

Although triple net leased acquisitions are hard to find in in the greater Washington DC market, Betty Friant, Vice President at Calkain Companies, recently brokered the sale of a triple net leased day care facility in Gainesville, VA for just over $4 million at a very attractive 8.64% cap.

The tenant signed a new absolute triple net lease on the 10,530+/- square foot state-of-the-art facility located near the entrance of the private Lake Manassas Development with its signature Robert Trent Jones Golf Club. Betty Friant exclusively represented the developer/landlord in the transaction. The property was introduced to the market with corporate and personal guarantees and a 15 year lease term with annual escalations beginning in year three.

“Day Care facilities provide a very attractive investment,” said Friant. “With McDonald’s and other credit tenants on the market in the 4% to 5% cap rate range, the 8.5+% cap on a day care gives investors another option. The fundamentals of the underlying real estate are important in the acquisition of a day care as they are with any real estate purchase, so a great location and market rents are crucial,” she added. Calkain currently has other day care facilities on the market for sale in the 7.5% to 8.5% cap rate range.

Calkain Companies is a boutique commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net leased transactions. While licensed to conduct business in many states, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast, Northeast and Midwest. Additional information about the firm and listings may be found at www.calkain.com.

Triple Net Lease Asian Investors Pick Safe Havens of U.S

Triple Net Lease Market News 

Triple Net Lease Asian Investors Pick Safe Havens of U.S

Calkain Companies, a real estate investment brokerage firm, recently facilitated the sale of a net leased hospice located in Winter Haven, FL. This transaction marks the first closing in Calkain's international partnership with Platinum Investment Corporation, headquartered in Shanghai, China. This partnership was formed in the fall of 2012 and is committed to opening the global net leased investments to the Asian investor looking to the United States for passive cash flow and property ownership. The property, an 8,000+/- SF medical site, is well located on a signalized corner and had a 10 year lease with annual increases. The buyer assumed attractive financing terms offered by the seller's bank. Calkain's Asset Management Division was retained to manage the property for the foreign investor.

Associate Teal Henderson represented both the seller and the buyer in this transaction. "This closing is the beginning of a historical relationship and new venture for Calkain. We are looking forward to a very successful and long term partnership with Platinum Investment Corporation. As we educate investors in this demographic and their appetite grows, they are quickly becoming purveyors of the net lease product. We have been able to swiftly work through language and culture barriers, in addition to, a large time zone difference to close the first deal and we have already begun working on new transactions." Henderson commented.

Calkain Companies is a boutique commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net leased transactions. While licensed to conduct business in many states, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast, Northeast and Midwest. Additional information about the firm and listings may be found at www.calkain.com.

Triple Net Lease Podcast

Triple Net Lease News 



 Triple Net Lease Podcast 


You'll be happy to know iTunes has posted our new podcast under New & Noteworthy for Business > Investing, as seen in the attached screen cap. This episode features Jonathan Hipp and Sam Chandon reviewing 2012 and looking forward to 2013. 

Here is the iTunes link where you can listen:

https://itunes.apple.com/us/podcast/calkain-net-lease-podcast/id631770417

I encourage everyone to take advantage of this new media outreach model and participate in future episodes. If there is a topic you'd like to promote - could be anything including tenants, locations, market trends, advice etc - just let me know and I'll get you on the air.  

Thanks!

Triple Net Lease CVS Pharmacy Sold

Triple Net Lease Properties

Calkain Net Lease Investment Advisors recently completed the sale of a triple net lease investment property in Washington, DC. The purchaser, a private 1031 investor, seeking a stable, credit rated, income-producing asset. The sale, closing at over $1,154 per square foot, broke the record previously set by Calkain for a triple net lease investment sale.

Rick Fernandez, Managing Director of Calkain triple net lease  Investment Advisors, represented the seller in the transaction and Calkain Managing Director, Jerry Burg, represented the buyer on the purchase of the CVS on Columbia Road in Adams Morgan. “The Adams Morgan CVS is well situated in a grocery anchored, dense, high traffic, urban location within a diverse residential and retail community,” explained Fernandez. “The investor understood that this CVS not only provided a stable income stream backed by a strong credit rated corporate tenant, but also a highly adaptable asset with rock solid generational value,” continued Burg.

The seller reviewed multiple offers from across the country before closing with a private investor who was working with Burg to identify $35MM in triple net lease investment properties for a 1031 exchange. The transactions closed in the past thirty days.

Calkain Companies is a triple net lease investment brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net leased transactions. While licensed to conduct business in many states, nationally, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast and Northeast United States. Additional information about the firm and listings may be found at www.calkain.com.

Triple Net Lease Market Continues Retreat

Triple Net  Lease Market 

DC Triple Net Lease Market  has The Fourth-Lowest Level Overall of Distressed Assets 

While the volume of distressed commercial real estate properties is significant, so is the looming volume of stressed property. These properties have characteristics of concern in the short term maturing loans, bankrupt tenants, under-performance, financially troubled owners or other significant obstacles that could potentially lead to distress in the future.

Washington and Baltimore

Of the 10 markets we track, the Washington area has the fourth-lowest level overall of distressed assets (excluding stressed) at $1.6 billion, while Baltimore has the lowest, at $430 million. Stressed assets are much higher in Washington, at $3.7 billion, third-highest among the 10 surveyed cities. Distressed real estate per capita is $289 per person for the Washington area, which is fourth-lowest among the 10 markets, while Baltimore has $157 per capita, which is the second-lowest of the 10 cities surveyed.

Opportunities to snap up distressed assets in the region have been limited. Washington’s assets have largely been held by strong, institutional ownership, and have benefited from the region’s steady economic performance and employment growth.

Mike Donnelly is a senior associate at Delta Associates. Staff at Delta Associates contributed to this article. For more information, please visit www.deltaassociates.com.

Triple Net Leased Clients Acquired Three Separate Net lease Transactions

Triple Net Lease Market

Andrew Fallon of Calkain Companies, a national real estate investment brokerage firm, successfully completed three separate net lease transactions in which private clients acquired passive real estate investment properties. Two of the properties were located in Virginia and one in Tampa, FL. The properties acquired were leased on a long-term, triple net basis to the national tenants 7-Eleven Inc. and Childtime Learning Centers. Calkain's Andrew Fallon, Assistant Vice President, facilitated each transaction providing client representation and advisory services to the buyers, who each had different investment objectives and motivation.

7-Eleven, Norfolk, VA A Northern Virginia real estate investor, who was seeking passive income from a credit tenant, purchased a NNN ground lease in Virginia Beach, VA. The 0.81 acre property is leased to 7-Eleven, Inc. for a term of 20 years with structured rent increases. The tenant made significant improvements to the property in 2007, including a 3,000 square foot convenient store and a 1,600 square foot pump island canopy with four MPDs. As a NNN ground lease, this investment requires that 7-Eleven pay for real estate taxes, insurance, and maintenance expenses

Childtime Learning Center, Midlothian, VA Calkain provided advisory and transaction support services to a private Northern Virginia investor who was interested in acquiring a net lease child care facility. The investor purchased a well-positioned, single-story daycare center located near the Chesterfield Towne Center in Midlothian, VA. The 6,380 square foot property is leased to and operated by Childtime Learning Center, who provides a corporate guaranty for the lease obligations. The existing and established tenancy, coupled with the location and low rent attracted the investor interest.

Confidential Property, Tampa, FL As part of a 1031 exchange purchase, Calkain's private investor client acquired a retail building leased and occupied solely by an national, investment-grade tenant. The developer-seller fully renovated the property in 2011 to accommodate the tenant, who will operate under a 10-year NNN lease which will provide passive income to the investor. Calkain's Managing Director, Patrick Nutt represented the developer-seller in the transaction.

Calkain is a full service real estate investment brokerage firm with a national scope focusing on single and multi-tenant retail, industrial, hotel and office net-leased transactions as well as asset management, tax planning, and advisory services.

 Calkain has offices in Reston, VA (Washington, DC), Tampa, FL, Bethesda, MD, Wilmington, DE and Boston, MA. Additional information about the firm and its listings may be found at www.calkain.com.

Triple Net Lease Midwest Market Report

Triple Net Lease Market NEWS

 Midwest Triple Lease Market Report

The Midwest Market encompasses a varied set of states that mainly include: Missouri, Kansas, Minnesota, Illinois, Kentucky, Ohio, Indiana, Iowa and Wisconsin.  The major cities and metro areas that highlight this market are St Louis, Kansas City, Indianapolis, Minneapolis/St Paul, Madison, Kansas City, Des Moines, Cincinnati and Columbus. Chicago although considered a cornerstone of the region acts more like one of the major metropolitan areas behind New York, Los Angeles, Miami, San Francisco and DC. It is the more representative of the primary market in trends and pricing even though it is a hub for retail commercial real estate and reporting, its’ behavior is an exception to the majority of Midwest’s  NNN lease market.

As a whole, the Midwest sector is underserved and largely untapped in the NNN leased niche. There are virtually no firms specifically working on the NNN assets for this market.  The majority of the investment grade listings are picked up by out of state brokers who may not be cognizant of the intricacies of the Midwest investor mindset and region particulars. 

Read the full report here.

www.calkain.com

Difference Between a Net Lease,a Triple Net (NNN) Lease

Triple Net Lease Market

What is the difference between a Net Lease, a Net Net Lease and a Triple net (NNN) lease?

Double net NN means that the tenant pays for everything except structural repair.

Triple net NNN means that the tenant is responsible for generally everything including structural repair, but every lease is different, it is best to actually see copy of any lease very early in any negotiation process. Many triple net leases hold the landlord still responsible for roof repairs. It is always a matter of negotiation between the parties.

In residential leasing you deal with people, but in commercial you deal more with contracts and corporations.

In addition to NN and the NNN leases, there is such thing as a Bond Type Lease which basically means that the tenant will pay on the lease no matter what even if the building burns down or other disaster happens.

The advantage of a bond type lease is that the landlord can take that Bond Type Lease and actually securitize it and get money for it, provided of course that the tenant is of investment quality.

http://www.calkain.com/