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 Dollar General Sold

Triple Net Lease Market News

Dollar General Net Lease Sells for $1.23MM in Petersburg, VA

Calkain Companies recently sold a Dollar General (NYSE: DG) triple net lease property located in Petersburg, VA. The transaction closed within the past 30 days and illustrated the compressing cap rates within the net lease segment of the market. The buyer was a privately held, fully integrated real estate investment company. The seller was a regional real estate developer. As a preferred developer for Dollar General, the same seller has engaged Calkain to sell another store in Halifax, VA. These  Triple net lease Dollar General properties have been developed as part of Dollar General’s build-to-suit program. The stores have brand new 15-year triple net leases, which provide passive income for the new owner.

Calkain’s Andrew Fallon, Assistant Vice President, facilitated the transaction by providing exclusive representation to the seller. More sales of Dollar General stores have been transacting since S&P raised the company’s credit rating to investment grade BBB- in April 2012. The Petersburg store was highly sought after given its proximity and access to the I-95 corridor, the surrounding demographics, and the favorable lease structure. Fallon commented, “As Dollar General continues to roll out new stores in new markets, the investor demand continues to increase for superior market locations.” The combination of tenant credit and triple net lease terms provide a passive, bond-like fixed income investment, “The leases with Dollar General’s guaranty provide a strong income stream for the buyer, who will have limited to no management responsibilities.” The buyer financed the purchase using a regional bank.

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, nationally, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast, Northeast and a new office opening in the Midwest. Additional information about the firm and listings may be found at www.calkain.com.

'Triple Net Lease'

A lease agreement that designates the lessee (the tenant) as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased asset, net building insurance and net common area maintenance. The lessee has to pay the net amount of  three types of costs, which how this term got its name.

Read more: http://www.investopedia.com/terms/n/netnetnet.asp#ixzz28vvZPRAp

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.

NNN Brokerage Firm, Successfully Completed Triple Net Lease (NNN) Transactions

Net Lease Press Releases


The properties acquired were leased on a long-term, triple net basis



Scott Black, Associate and Patrick Nutt, Managing Director of Calkain Companies’, a national real estate investment brokerage firm, successfully completed  triple net lease (NNN) transactions in which private clients acquired passive real estate investment properties. The two properties were located in Florida . The properties acquired were leased on a long-term, triple net basis to the national tenant Regions Bank.


A summary of the each triple net lease transaction is below:


Regions Bank - Lakeland, FL: Calkain secured the exclusive listing from the owner, a family investment fund, and secured a fully executed contract to purchase within two weeks. The ultimate buyer, a private investor, purchased the 4,620 square foot property leased by Regions Bank (NYSE: RF). Even with only three (3) years remaining of the lease, the established tenancy, coupled with the shopping center outparcel location, made this an attractive investment.

Confidential - Florida Transaction: Calkain exclusively listed a confidential property that was ultimately 
purchased as part of a 1031 tax deferred exchange. The private investor, based out of New York, acquired a building leased and occupied by a national, investment-grade tenant. Further details are unavailable due to confidentiality agreements between parties.
Calkain is a full service real estate brokerage firm with a national scope focusing on single and multi‐ tenant retail, industrial, hotel and office net‐leased transactions.




 Additional information about the firm and its listings may be found at www.calkain.com.

Triple Net Lease Market Report

Triple Net Lease Market

Overall, net lease cap rates fell by 25 basis points in 2011. The primary drivers of this trend are lack of product (especially high quality product) and an ease in lending conditions. Construction of new net lease product continues to flow at a trickle while financing has become more available with local and regional banks competing with insurance companies for credit tenant deals. Investors have shown the willingness and ability to invest but are hindered by lack of product to satiate their demand. This lack of supply and increase in demand has forced prices up and cap rates down many would argue that 2012 promises to be a seller’s market in 2012. It is worth noting that these numbers illustrate the average trend in net lease cap rates and the net lease market itself is highly diverse depending upon tenant, lease terms and location.

Though these factors have always been significant, their effects have recently compounded. Investors have shown a preference for high quality tenants in prime urban and suburban locations and are willing to pay some of the highest prices in recent years to obtain them. Cap rates in prime markets can be up 125bps lower than the charted averages of many segments. However, investors are increasingly showing interest in properties containing lower credited tenants or located in secondary locations exchanging risk for higher returns. Net lease investments continue to gain traction as an alternative investment instrument for cash flow and yield investors.

http://www.calkain.com/reports/research/calkain_research34.pdf

Triple Net Lease Rite Aid Sold

Triple Net Lease Market

Triple Net Lease Rite Aid Located in Gastonia, NC Sold!

Calkain Companies, a national real estate investment brokerage firm, successfully completed a triple net lease transaction in which a private client acquired a property leased to and operated as a Rite Aid (NYSE:RAD) pharmacy. The $2.3MM property was located in Gastonia, NC and the purchaser was a private, mid-Atlantic real estate investor. The 10,900 sf pharmacy building is leased to Rite Aid under a long-term, triple net lease, which provides passive income for the investor.

NOT SITE PHOTO 

Calkain’s Andrew Fallon, Associate, facilitated the transaction, providing exclusive representation to the Buyer. Pharmacies have long been a desired segment of the net lease market, but Rite Aid properties have been scrutinized given the company’s operating performance. Fallon worked closely with the buyer and indicated that, “the investor did extensive due diligence on this Rite Aid location, ensuring that the store was busy, had excellent sales, and was on a strong corner.” The property is located at a signalized corner across the street from a Walgreens, one of Rite Aid’s main competitors. Fallon continues, “Within the net lease market, Rite Aid’s are offering an inflated return to investors based on the perceived credit risk associated with the tenant.” Even with the perceived risk, the purchaser was able to secure competitive financing for the acquisition.

Rite Aid operates approximately 4,700 pharmacies in 31 states and the District of Columbia. Rite Aid is the largest drug¬store chain on the East Coast and the third largest drugstore chain in the county.

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.

USA Seeing an Uptick in Triple-Net-Lease Sale-Leaseback Listings and Transactions

Triple  Net Lease Market 

Triple-Net Sale-Leasebacks Are Gaining Ground

Commercial real estate professionals across the country are seeing an uptick in triple-net-lease sale-leaseback listings and transactions. These transactions can be highly effective for companies looking to reallocate risk, eliminate debt and create capital. They also can provide a passive investment with long-term returns for the triple-net-lease asset buyer.

Understanding what this transaction is and how to exercise it is essential to buyer and seller success. Commercial mortgage brokers should be familiar with the ins and outs of triple-net-lease sale-leasebacks to help their clients secure financing for these deals.

What is it?

A triple-net-lease sale-leaseback is a real estate transaction a company or corporation can use as a financing tool. The entity that owns a property sells it to a passive investor to realize a cash infusion and possibly pay off current debt. It then becomes that asset's long-term tenant through a triple-net lease executed with the new property owner.

Traditionally, a triple-net lease is a lease where the tenant pays all expenses associated with the property. This typically includes annual rental amount, property taxes, insurance and any property management. The tenant also agrees to be solely responsible for the maintenance of the building, roof, parking lot, etc.

A triple-net-lease sale-leaseback strategically makes the current owners the new tenants and allows them to raise capital while maintaining control of the site and operations. At the same time, the transaction allows for a long-term stay and business continuity. The new owner also benefits from the transaction, becoming a landlord with few responsibilities who enjoys a long-term tenant and certain cash flow and investment yield.

Benefits

Banks' grip on financing remains tight, and many small to midsize companies are using sale-leaseback transactions as a two-fold financial strategy.

First, the company unleashes locked equity in its real estate, taking an illiquid asset and creating liquidity. Second, by creating this liquidity, the company makes itself more attractive to lenders and investors by increasing its balance sheet, specifically the debt-to-equity ratio. Freeing this capital also allows the company to quickly redeploy it to expansion, operations or other opportunities. In some cases, a sale-leaseback transaction can allow a company to continue operations, fund payroll or build reserves for longevity.

For example, a multiple-unit Burger King franchisee used a sale-leaseback of one property to pay off a mortgage coming due on another property that the bank would not refinance. Through that transaction, two mortgages were eliminated. By selling site A, the franchise owner paid off site A's mortgage and used net proceeds to pay off site B's mortgage.

Larger corporations also are joining the sale-leaseback ranks. Swedish carmaker Saab Automobile used a sale-leaseback this past June to raise more than $39 million in capital to restart production. Owning real estate assets once was an appealing way for growing corporations to bolster their balance sheets and long-term investments. Momentum is shifting, however, toward creating a smaller footprint with a directive to limit overhead and deploy capital for more-immediate and profitable returns. A company's ability to be nimble and have an exit strategy from a certain geographical market also should be considered.

In addition, under the current Financial Accounting Standards Board rules, a qualified operating lease would not appear on the tenants' balance sheet as either a debt or long-term obligation. Lease payments are 100 percent tax-deductible as an operating expense, but if the company owns real estate, only the interest portion of the debt payment can be deducted. This improves its credit status.

Factors to consider

Triple-net-lease investors and their mortgage brokers should consider a few factors in the underwriting and leverage-seeking process. There are more factors involved with a sale-leaseback than a vacant commercial property. Some factors to consider are:

• What is the status of the tenant's credit? Lenders on sale-leasebacks look at the tenant.
• Is the tenant a publically traded company and if so, what does its rating and balance sheet look like?
• Is the tenant a single-unit franchise owner?
• Is this property easily re-tenanted if it becomes vacant?

There are a variety of other considerations, but it is clear that using a sale-leaseback as a financing mechanism includes further financial exploration by the seller, buyer and lender. Buying this type of asset requires a valuation that is not solely based on the merit of the real estate alone. The tenant's creditworthiness and strength is paramount.

The terms of the new triple-net lease and the tenant's strength are equally important to the underwriting as the intrinsic value of the real estate and improvements. The investor and the lender must be comfortable with the mix of value derived from all these sources.

These are just a handful of factors that brokers and their clients must consider when calculating the capitalization rate and pricing the asset, as well as when purchasing and leveraging an asset.

Business owners are continuing to see triple-net-lease sale-leasebacks as viable and effective forms of financing, and savvy investors are looking to them for passive investment opportunities with above-market yields. Understanding this type of transaction's nuances is key to both sides of the transaction realizing their financial goals. As these deals increase in popularity, commercial mortgage brokers who understand the triple-net-lease sale-leaseback transaction can better position themselves to compete and succeed.

Teal M. Henderson is a broker for Calkain Companies Inc. in its Tampa, Fla., office. Her focus is solely triple-net-leased investment sales with a synergistic approach from the tenant, developer and investor's perspectives. Henderson is also a certified paralegal and has more than 12 years' experience in contract negotiation, loan securitization, mortgage facilitation, real estate compliance and title work. Reach her at (813) 235-5812 or thenderson@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/

Triple Net Lease Retail Properties Sold in Washington, DC

Triple Net Lease Market  News
Reston, VA, – Calkain Companies, a national real estate investment brokerage firm, represented both seller and buyer on a cobranded Walgreens (NYSE:WAG) and PNC Bank (NYSE:PNC) ground lease in Fairfax, VA. The transaction sold for $13,800,000 which equated to the largest net leased retail transaction in the Washington, DC area in the last several years.  The sale price represented a 5.90% capitalization rate which is indicative of the reach that Calkain Companies has to match investors with sound real estate investments.
Jeff Bogart, Tax Strategy Specialist of Calkain Companies, represented both the buyer and seller.  “Ground leases are not as prevalent as fee simple properties and as such, demand is high for Walgreens (Standard and Poors: A+) and PNC Bank (Standard and Poors: A+) quality of credit coupled with the added security of ground lease ownership. Both leases had rental increases every 5 years, which, in comparison to typical Walgreens’ leases, made this property more unique in today’s market. The intrinsic value of the real estate also helped drive the cap rate to 2007 levels as it is located in Fairfax County, Virginia - which has a top 10 national ranking for median household income, at well over $110,000. The buyer, an undisclosed, due to confidentiality agreements, local investor considered himself fortunate to secure such a quality asset.”

http://www.calkain.com/

Triple Net Lease Investments Returns Are More Favorable

Triple Net Lease News

Triple net lease properties' returns are more favorable and more secure than some traditional investment vehicles

By: David Sobelman, Executive Vice President, Calkain Cos.

As published in Scotsman Guide's Commercial

Despite the economic downturn and the fact that many aspects of the commercial real estate industry still need time to season before true recovery takes place, some niche segments of the market are actually performing extremely well. In fact, some are at the same level they reached at the height of the market.

Triple net lease investment properties, in particular, may be a true bright spot on the commercial investment horizon. Here's why.

Triple net lease properties are probably some of the most commonly noticed commercial real estate in the market. Most of the assets are drugstores, bank branches, restaurants, home-improvement centers and the like. These are core assets that have daily users and requirements. Typically, they are single-tenant buildings where, through the lease structure, the tenant is responsible for the taxes, insurance, and maintenance and management of the building - the three "nets."

Investors have a strong appetite for passive income in today's market, as there are few alternatives for them to receive a return that is equal to or better than what net lease assets provide. Additionally, it seems that lenders are becoming more comfortable with the asset type - many transactions in today's market are using some sort of lender-provided leverage.

Mortgage brokers are an integral part of the lending process for net lease investments, especially because one lender won't provide the best rate and terms for a particular investor every time. Brokers who want to increase their business in this asset class should understand what goes into funding triple net lease properties and be aware of the market's emerging trends.

Underwriting the tenant

Like in any underwriting process, lenders consider the real estate's value first. With net-lease investments, however, the current tenant's credit also is weighed heavily.

Because tenants occupying single-tenant buildings typically sign long leases - sometimes for as many as 25 years or more - lenders want to know who is actually paying the rent to support the property for that long. Therefore, the underwriting of the tenant's credit becomes a key factor for lenders considering net-leased assets.

There is some standardization for rating tenants, which comes primarily from credit-rating agencies such as Standard & Poor's (S&P), Moody's Investor Service, Fitch Ratings, etc. These agencies each have their own alphanumeric system to report how a particular company is performing from a credit perspective. S&P, for instance, has ratings that begin at AAA as the best-possible credit and incrementally go down to D.

In today's lending environment, net-lease tenants with an S&P credit rating of BBB or greater have a better chance of getting a lender's attention because they are seen to be less risky. Tenants with credit ratings less than BBB are perceived to be more likely to default over the term of the lease.

In fact, a Moody's study quantified this phenomenon, stating that companies with a BBB- credit rating have a 4-percent chance of defaulting on their lease within any five-year period. Conversely, a company that has rating of B- has a 43-percent chance of defaulting on its lease within the same period. As a matter of comparison, companies with AAA ratings have a 0.15-percent chance of defaulting. It is pretty clear why lenders focus their underwriting on the potential tenant's credit.

Funding net leases

Although mortgage brokers unfamiliar with this asset class may think this type of debt comes from sophisticated sources housed in a class-A skyscraper on Wall Street, the vast majority of loans for net-lease investments come from banks.

Real Capital Analytics, a market-research company, recently reported that 51 percent of single-tenant acquisition transactions completed to-date in 2010 came from a traditional bank. It also reported, however, that 40 percent came from a national bank and 11 percent was from a regional or local bank.

It seems that when a recession hits, the lending environment changes to a point that sophisticated financing instruments are no longer needed to drive the market. Instead, individual relationships between borrowers, lenders and their conduits (i.e., mortgage brokers) are the primary source of transaction volume.

In addition, Real Capital Analytics reported that 30 percent of the transactions completed this past year used existing financing that was assumed by a new buyer. Anecdotally, investors active in the market at the beginning of this year did not have as many sources of capital. Those who made purchases that required financing were given financing quotes that were outrageous and did not allow the transaction to make sense to the investor. Therefore, they assumed the debt from the previous owner because the terms and interest rates were more favorable than the market at that time. Sourcing debt for net-lease investments is becoming easier, however.

Gaining market share

Single-tenant properties have become so popular this past year that they comprised roughly 35 percent of all commercial real estate transactions completed in the first two quarters of the year, according to data from Real Capital Analytics. By comparison, when the market was at its peak in 2007, only 20 percent of all transactions included the asset class.

With more than $425 billion in total commercial sales in 2007 - which included $85 billion in single-tenant sales - compared to $35 billion in total sales for these past first two quarters - which included $12.25 billion in single-tenant sales - it is apparent that with fewer transactions, more people are steering toward stabilized and lower-risk properties.

Capitalization rates - or cap rates - are a quick snapshot of an investor's return. In today's market, cap rates are roughly 6 percent to 8 percent for creditworthy properties. When a basic comparison is made using other passive investments, it is fairly clear why investors are seeking to put their capital to work in the property type.

Most investors who have cash available to make passive, nonspeculative investments are using basic money-market or savings accounts to hold the cash. When returns for those investment vehicles hover around 1 percent, the investor is motivated to find alternative investments for that capital while also maintaining a steady and safe cash flow over a period of time. Net-lease properties are filling that void.

Tracking trends

There are different periods where lenders will have a strong appetite for a particular tenant and less so for other tenants, and this changes over time. Brokers who stay on top of these kinds of trends in their markets and leverage their relationships with lenders can help clients find the best rates and terms at any particular moment.

As an example, Walgreen Co. drugstores - a common triple net lease tenant - have an S&P credit rating of A+. As such, lenders are comfortable with these stores' credit and viability as a longstanding tenant. At the beginning of this year, however, there were more than 450 Walgreens stores available for purchase as net- lease investments.

Because most investors need financing to purchase a single store and the average sale price for a Walgreens store is about $5 million, mortgage brokers were engaged to find the best debt. Lenders, however, found that they had too many Walgreens loans on their balance sheets and started to slow down the distribution of debt for that tenant. Brokers show their value in these scenarios by finding other lending sources that aren't as saturated with one particular tenant.

Supply and demand dictates the rate and terms of a particular tenanted-occupied building. Because of their popularity, Walgreens investments typically garner a higher interest rate. Other companies that have S&P credit ratings of A+ and similar lease terms, but higher price tags and therefore fewer buyers may have substantially lower interest rates.

Lenders, therefore, dictate rates and terms based not only on the tenant's credit, but also on subjective factors that move markets in different directions at different times. Mortgage brokers should be cognizant of these trends and have their arsenal of lending sources available for their clients as market indicators change.

Net lease properties have proven to be a strong asset class in this recovery -driven market. Lenders are seeking assets for their portfolios to maintain strong balance sheets. It's always better to have a stabilized net-lease investment earning income for the lender and the investor on the books as opposed to vacant, speculative land that likely has an undetermined value for future development.

Mortgage brokers who focus on this asset class can take advantage of the new demand for these properties, as they are some of the only properties getting funded with rates and terms last seen at the height of the market.