buyersutopia

Best Chicago Mobile Real Estate Search

robert — Wed, 09 May 2012 04:55:41 +0000

Ideal Location Chicago Real Estate, LLC in partnership with Buyers Utopia is now offering all their clients mobile searches. Clients with iPhones & Android based smart phones now will be able to get “on the go” real estate searches in the Chicago metro area. The mobile site is a great way for real estate buyers to stay connected. Clients can log in with their social media accounts using Google, Yahoo or Facebook credentials to make access fast & easy.

Say’s Managing Broker, Eli Schultz, “The mobile web may still be in it’s infancy but it is a trend that is here to stay. We are seeing more people accessing the internet from a mobile devices daily. Mobile property searches are being used by everyone from seasoned investors to first time home buyers.”

The Buyers Utopia mobile Chicago Real Estate Features Overview:

The radius search type in a starting street address and search for homes within a radius of anywhere from 1/4 to 20 miles. Favorites are saved with a single click, users can save any listing to their favorites tab for reference later. The mobile features make it easy for both agents and clients to carry around lists of their property.

Users will see individual Google Map and Satellite view options to every Chicago property listing. Advance through hi-resolution mls photos on each listing with easy arrow buttons or with a swipe of your finger.

The most popular feature are the location based searches. This allows use your phone’s built-in GPS to see a map of listings withing a radius of your current location. Location based searches allows clients to see prices and alternate listings when your are out looking at properties in any neighborhood.

Visit buyersutopia.com/mobile to get your Chicago area real estate search mobile. The best part is it runs in a normal mobile browser; no download necessary . With Chicago Mobile Real Estate Search you can access the entire northern Illinois MLS on iPad or Android tablets, or use for your Android, Blackberry, or iPhone.

Triple Net Lease Property Purchase Options

robert — Mon, 30 Apr 2012 19:29:34 +0000

In addition to retail properties and office buildings, investors seeking to make triple net lease property purchases should consider restaurant, grocery, and other types of food-service properties. Property sizes and locations may vary widely, making it easy for the investor to find a property that fits with their financial goals and investment portfolio. Even in times of economic downturn, the consumer must eat.

National restaurant chains include such well-known entities as McDonalds, Burger King, Olive Garden, Applebee’s, Red Lobster, and Denny’s. This type of company researches their locations exceptionally well and typically remains in a location for many years. The nature of the restaurant business requires exceptional upkeep of the property, including regular renovation to maintain a fresh, updated look. Health regulations require that restaurant properties be in perfect working order at all times. The result of these factors is that, at the tenant’s sole expense, the real estate will remain very well maintained.

Fast food chains such as McDonalds and others typically seek small properties on prominent, high-traffic corners near other services and in well-populated areas or major traffic routes. Burger King and other second-tier fast food chains will typically follow behind McDonalds, often seeking the opposite corner of the intersection.

Sit-down restaurant chains such as Applebee’s, TGI Friday’s, and Chili’s typically seek locations near other restaurants and retail outlets, although some do target hard-corner intersection properties. Diner type chains such as Denny’s may follow the same profile as fast food or other sit-down chains, but may also target areas where lower end business travelers stay, near areas of express type hotels without services.

Many triple net investors tend to overlook the smaller profile grocery or convenience chains, such as Fresh & Easy markets, Circle K, or 7-Eleven stores. These tenants also present a stable, long-term tenant scenario for the investor, requiring less real estate and smaller buildings. Larger corporate grocery chains such as Safeway and Kroger may also be attractive to the investor, although the real estate requirements will be greater.

Although triple net lease investments usually involve the engagement of a national tenant, at least in an ideal investment scenario, the investor may wish to consider regional or local restaurant or grocery tenants. The recent economic and environmental climate has pushed the consumer to seek out small “mom and pop” vendors providing goods and services that are seasonal and locally sourced. This type of individual tenant will provide a greater stability risk, however from the investor’s viewpoint, that risk is typically offset with higher rents or some other creative lease terms. Investors have begun to realize a variety of rewards for supporting local businesses and services.

Chicago Foreclosures & Chicago Short Sales

robert — Sun, 29 Apr 2012 06:37:34 +0000

Chicago Foreclosures

Chicago Foreclosures & Chicago Short Sales

The Chicago real estate market still is awash with distressed properties. For savvy real estate buyers and investors this offers a tremendous opportunity. There are thousands of pre-foreclosures listed on the market but Chicago real estate buyers do have to be careful as a large percentage of these are simply real estate agents guessing to the pricing. Often the listing prices of these Chicago Short Sales are absolutely meaningless. Yes the property is worth less than the balance owed. yes the property is in pre-foreclosure and yes it is listed, but is the asking price approved by the lender? Unfortunately for buyers the answer is all to often no, and the listing agent is just guessing as to the value. If you are buyer considering putting offers in on pre-foreclosure short sales you should work with a buyers broker that can help you vet these deals.

ATTENTION SHORT SALES BUYERS – To Search all the Pre-Foreclosures on the market Click Here to see the thousands of Chicago Pre-Foreclosures

Considering that most of the pre-foreclosures currently listed on the market will not sell as short sales and have to be foreclosed upon by the lender it can be a good strategy to focus on bank or lender owned ( REO ) properties instead. These properties have gone through the foreclosure process, but no one successfully bid on them for purchase. There are many advantages to buying bank REOs in Chicago. These bank owned properties are highly sought after because there is no real waiting as with the short sale process.

ATTENTION REO BUYERS – Search all the Chicago Bank & Lender Owned Properties in your neighborhood. Click Here For Detailed Chicago REO Map Search

Showing properties 1 - 50 of 500+. See more Chicago REO All- 4/28/2012 9:42:55 PM.
(all data current as of 5/16/2012)

$249,900 : 2026 W Superior Street, CHICAGO

3 beds, 2 full, 2 part baths

Home size: 1,848 sq ft

Lot size: 2,400 sqft
$204,500 : 1506 N Campbell Avenue ,Unit Number 3S, CHICAGO

2 beds, 2 full baths

Home size: 1,600 sq ft
$186,500 : 757 W 14th Place ,Unit Number 2A, CHICAGO

2 beds, 2 full baths

Lot size: 1,152.00 ac
$150,000 : 7326 S Exchange Avenue, CHICAGO

0 beds, 0 baths

Lot size: 10,000 sqft
$79,900 : 6036 N Kenmore Avenue ,Unit Number 2, CHICAGO

1 bed, 1 full bath

Home size: 800 sq ft
$74,900 : 1244 W 109th Street, CHICAGO

4 beds, 2 full baths

Home size: 1,773 sq ft

Lot size: 3,750 sqft
$65,000 : 13153 S Escanaba Avenue, CHICAGO

2 beds, 1 full bath

Home size: 1,222 sq ft

Lot size: 5,001 sqft
$59,000 : 1100 W 51st Street, CHICAGO

0 beds, 0 baths

Lot size: 6,625 sqft
$45,000 : 6521 S Stewart Avenue, CHICAGO

5 beds, 3 full, 1 part baths

Home size: 2,900 sq ft
$45,000 : 2158 N Melvina Avenue, CHICAGO

4 beds, 2 full, 1 part baths

Home size: 2,121 sq ft

Lot size: 3,751 sqft
$43,900 : 7708 S Constance Avenue, CHICAGO

5 beds, 3 full, 1 part baths

Lot size: 3,125 sqft
$25,200 : 4448 W West End Avenue, CHICAGO

6 beds, 2 full baths

Lot size: 6,250 sqft
$19,500 : 7334 N Ridge Boulevard ,Unit Number 206, CHICAGO

1 bed, 1 full bath

Home size: 816 sq ft

Lot size: 7,595 sqft
$19,000 : 7129 S Wolcott Avenue, CHICAGO

2 beds, 1 full bath

Home size: 1,008 sq ft
$349,900 : 5705 N Lockwood Avenue, CHICAGO

3 beds, 3 full, 1 part baths

Home size: 2,316 sq ft

Lot size: 4,035 sqft
$199,500 : 6324 W Roscoe Street, CHICAGO

6 beds, 3 full baths

Home size: 1,235 sq ft

Lot size: 3,569 sqft
$189,900 : 4018 S Oakenwald Avenue ,Unit Number 2, CHICAGO

3 beds, 2 full, 1 part baths

Home size: 1,718 sq ft
$130,520 : 1645 W Ogden Avenue ,Unit Number 518, CHICAGO

2 beds, 2 full baths

Home size: 1,100 sq ft
$120,000 : 3709 N Elston Avenue, CHICAGO

0 beds, 0 baths

Lot size: 3,125 sqft
$107,500 : 5855 N Sheridan Road ,Unit Number 6E, CHICAGO

1 bed, 1 full bath
$107,000 : 3753 W Dickens Avenue, CHICAGO

5 beds, 3 full baths

Home size: 1,680 sq ft

Lot size: 3,125 sqft
$100,000 : 8101 S Whipple Street, CHICAGO

3 beds, 1 full, 1 part baths
$96,500 : 3963 W Belmont Avenue ,Unit Number 520, CHICAGO

2 beds, 1 full bath

Home size: 1,428 sq ft
$71,900 : 6527 N Mozart Avenue ,Unit Number 2A, CHICAGO

2 beds, 2 full baths
$70,000 : 1900 N Nashville Avenue, CHICAGO

2 beds, 1 full, 1 part baths

Home size: 1,058 sq ft

Lot size: 3,049 sqft
$69,500 : 6342 S Long Avenue, CHICAGO

2 beds, 1 full bath

Home size: 832 sq ft

Lot size: 2,000 sqft
$63,000 : 471 W Winneconna Parkway, CHICAGO

3 beds, 2 full baths

Home size: 1,512 sq ft

Lot size: 3,046 sqft
$59,900 : MLS # 08067976 in CHICAGO

2 beds, 1 full bath

Home size: 900 sq ft

Lot size: 7,500 sqft
$54,600 : MLS # 08068385 in CHICAGO

6 beds, 2 full baths

Home size: 1,760 sq ft

Lot size: 5,001 sqft
$52,000 : 3434 W 54th Street, CHICAGO

4 beds, 2 full baths
$42,000 : 3436 W Evergreen, CHICAGO

2 beds, 1 full, 1 part baths

Home size: 1,023 sq ft

Lot size: 3,075 sqft
$36,750 : 7022 S Rockwell Street, CHICAGO

4 beds, 2 full, 1 part baths

Lot size: 3,485 sqft
$35,900 : MLS # 08068378 in CHICAGO

3 beds, 2 full baths

Home size: 1,000 sq ft

Lot size: 5,550 sqft
$34,900 : 5925 S Talman Street, CHICAGO

5 beds, 2 full baths

Lot size: 3,485 sqft
$30,000 : 6620 S Green Street, CHICAGO

6 beds, 2 full baths

Lot size: 3,125 sqft
$27,000 : 2605 S Indiana Avenue ,Unit Number 507, CHICAGO

1 bed, 1 full bath
$19,900 : 819 S Kedzie Avenue ,Unit Number C, CHICAGO

1 bed, 1 full bath

Home size: 750 sq ft
$19,800 : 5046 W Crystal Street, CHICAGO

5 beds, 2 full baths

Lot size: 3,125 sqft
$17,700 : 7339 S Seeley Avenue, Chicago

3 beds, 1 full, 1 part baths

Home size: 1,000 sq ft

Lot size: 3,125 sqft
$10,000 : 9341 S Lyon Avenue, CHICAGO

4 beds, 2 full baths
$10,000 : 5537 S Lafayette Avenue, CHICAGO

0 beds, 0 baths

Lot size: 2,500 sqft
$210,900 : 1301 W Madison Street ,Unit Number 403, CHICAGO

1 bed, 1 full bath
$198,000 : 5371 W Lawrence Avenue ,Unit Number 3, CHICAGO

2 beds, 2 full baths

Home size: 1,050 sq ft

Lot size: 3,756 sqft
$152,000 : 1400 N Lake Shore Drive ,Unit Number 18G, CHICAGO

1 bed, 1 full bath
$137,900 : 655 W Irving Park Road ,Unit Number 904, CHICAGO

2 beds, 1 full bath

Home size: 849 sq ft
$100,000 : 4836 S Latrobe Avenue, CHICAGO

5 beds, 2 full baths

Home size: 1,793 sq ft

Lot size: 3,781 sqft
$94,900 : 2724 W 83rd Place, CHICAGO

3 beds, 1 full bath

Home size: 1,439 sq ft

Lot size: 4,395 sqft
$85,900 : 1825 N Keystone Avenue, CHICAGO

3 beds, 1 full bath

Home size: 1,159 sq ft

Lot size: 3,176 sqft
$75,750 : 3750 W Pippin Avenue, CHICAGO

4 beds, 2 full baths

Home size: 1,120 sq ft

Lot size: 3,160 sqft
$69,900 : 1550 S Blue Island Avenue ,Unit Number 620, CHICAGO

1 bed, 1 full bath

Home size: 900 sq ft

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Chicago Foreclosure Real Estate Investment (5.5)

Retail Investment Property – Single Tenant Triple Net

robert — Thu, 26 Apr 2012 23:05:50 +0000

When many investors consider triple net lease properties, they look to office buildings. However, many other types of real estate purchases will fit well with a NNN lease structure. Depending on the investor’s goals, retail properties provide many diverse and stable options for building the investment portfolio. Retail investment properties encompass a wide range of business types and tenant profiles.

Drug stores are one of the most prolific types of retail real estate, and one of the most secure investment vehicles. The consumer always needs prescription and over-the-counter medications, and several national chains, including CVS, Walgreens, and Rite-Aid, open new stores regularly all over the country. Drug stores have diversified to include low-cost medical and vaccination clinics and other services that appeal to a population that is both living longer and, often without health insurance, turning toward do-it-yourself medical treatment. In addition, consumers recognize the drug store setting as a preferred place to purchase occasion cards and gift wrap, cosmetics, and photo processing services. The national drug chains represent some of the strongest corporate profiles, with the demonstrated ability to endure all types of economic conditions. Finally, drug stores are appealing to many investors because the building profile is simple and fairly small, so affordable for most investors.

Banks and related financial institutions (credit unions, savings and loans, etc.) are also desirable for the investment profile, although recent economic events have rendered some banks less stable than is ideal for the tenant profile. Banks are typically long-term tenants that are easily qualified by the investor due to the amount of financial data they must publish under federal banking laws. Like drug store properties, banks are typically smaller buildings although the amount of security and other specialized equipment required in bank buildings does increase the cost of the property somewhat. Also similar to drug stores, the consumer will always require banking services. Online banking has reduced the amount of brick-and-mortar bank services required by the public, but financial institution properties are an attractive investment profile.

Discount Retailers, aka “Big Box Stores”

One of the largest growth areas of triple net lease investment properties are large discount retail tenants. Target, K-Mart, Wal-Mart, Costco, and others have become the shopping choice of many consumers, especially in light of the current economic challenges. As these retailers add additional services to their profile, the consumer can often take care of virtually all their family’s needs in one stop. The facilities are typically very large, requiring a heavy parking load, and may be free-standing or part of a so-called “power center,” or collection of big box retailers. These tenants are typically very stable, with long-term lease commitments and strong financial profiles. The only true downside for the investor will be a large property purchase price; however ROI on big box stores is typically very strong.

When the investor seeks a stable and well-producing type of triple net lease investment property, retail real estate should definitely be considered. Tenant strengths and high return on investment make this property profile a highly desirable one.

Equity Based Crowd Funding

robert — Wed, 25 Apr 2012 04:56:43 +0000

On April 5, 2012, President Obama officially sealed the JOBS Act. His signature on this new legislation marks a new beginning for the securities regulation industry. Specifically, it softens restrictions and lowers hurdles for small businesses to raise funds, primarily through equity based crowdfunding (alternately “equity based crowd funding”). This is a procedure which consists of combining individual investments of smaller sizes to meet bigger financial goals for smaller enterprises.

America has 6 million formal, small businesses in existence today. Most of these companies are not positioned to take advantage of angel investors, funding groups and investor cells like those most-often associated with Silicon Valley. It’s these other enterprises that will benefit from the JOBS Act and the permitted policies and procedures under its umbrella.

Between the early 1990s and 2009, smaller companies created approximately one-third of new jobs in the United States (65%). It’s clear these entities are the force behind America’s continuous growth. But that force needs fuel in the form of dollars; and if smaller companies can’t secure operating and growth capital, the unemployment rate will suffer in 2012 and beyond.

With traditional financial enterprises holding fast to their purse strings, small businesses are finding it an arduous, often insurmountable, process to raise money to simply stay afloat. The government thought it had a solution: the creation of the Small Business Lending Fund. But banks had a different use for the fund; they poured over half ($2.2 billion) of the $4.0 billion disbursement in 2011 into TARP debt, instead of intended small business lending. This left a great number of small businesses without viable capital solutions.

Many small outlets have turned to credit card borrowing — which is fast-becoming a financing solution of the past. A great number of banks have lowered credit card limits significantly, and others have canceled business credit lines altogether, often with little notice to cardholders. Some entrepreneurs have tapped friends and relatives for funding, a tactic with its own limitations and pitfalls. A small percentage of enterprises have the option of using equity financing. However, unless a company is part of the life sciences or high technology industries, equity financing is not a viable option. More than 70% of venture capital funding expended in 2011 went to high tech and life sciences type businesses and organizations.

Finally, small businesses have been thrown a lifeline by crowdfunding and the JOBS Act, which provides a new source of funding for small businesses. Through this legislation, the investor pool can quite possibly shift from the accredited investor (1 percent) to, according to President Obama, “the American people.” The pouring in of new investors will not only arm small businesses with new money; it will provide them with new perspectives and new sources of ideas for strategic planning and growth via partnerships with their shareholders.

Investment organizations of varying themes are already forging trails, especially on the internet. Niche investor cells poised to act are positioning themselves to focus on specific interests to capture the attention of small entities. For example, businesses and investors with common interests, such as socially conscious businesses, or local community, can be connected via formal platforms. Smaller companies now have a greater pool for capital, and a plethora of sounding boards for new ideas.

It’s common knowledge small companies are America’s lifeline. But their ability to generate capital needed to sustain and grow has been stifled by arguably the worst financial crisis since the Great Depression. But the JOBS Act and crowdfunding will go a long way in helping these enterprises overcome capital access problems; and, it will prove beneficial to investors by providing promising investment opportunities. This is a win-win for enterprise and the economy in America.

ATTENTION: Get a Legal Overview on Crowd Funding and the Jumpstart Our Business Startups JOBS Act. If you are looking top raise money for your small business watch this FREE Presentation on Crowd Funding.

Related posts:

Green Home Equity Loans (8.4)

Single Tenant Development Equity Partners For Triple Net Lease Deals (7.4)

Online Commercial Real Estate Search

robert — Fri, 20 Apr 2012 14:53:11 +0000

As investors turn more and more to purchasing real estate, especially commercial properties, the competition for the best deals becomes more and more aggressive. Triple net lease investment properties, one of the most lucrative property types in today’s fluctuating market, often can’t be located through traditional methods. Commercial real estate agents are an option, but a wealth of resources exists today to help investors identify properties themselves.

Commercial real estate typically is not listed in regional multiple listing service databases, however a number of excellent resources exist online to help identify commercial investment properties. On a local basis, many daily newspapers are still used to list commercial properties for sale, depending on the region and local custom. Local daily or weekly business journals may also be good sources for locating properties. The internet version of both types of publications may carry additional property listings not found in the print version of the papers. Because some fee is typically required to place ads in newspapers of this type however, property sellers may elect to try other, less expensive methods of listing their properties first.

The popularity of Craigslist.com has exploded in the past two years as a source for real estate listings. In most markets, the seller does not have to pay to list their property on Craigslist and most potential buyers turn to this site as an option when searching for investment properties today. Because it is both free and easy to post on Craigslist, many sellers list their properties on this site first in an attempt to locate a direct buyer, especially those without real estate agents. The only significant disadvantage to searching for properties on Craigslist is that this site does not have any real search functionality other than general geographical zones and a keyword search tool. Consequently, the investor may have to weed through a large quantity of properties to find the best ones.

Several commercial internet sites exist today that are dedicated to commercial property listings. The most widely used is LoopNet.com. LoopNet requires a paid subscription to list properties, however they allow the user to perform basic search functions without cost or login. Although the increased functionality provided by the paid service may be helpful, most investors can locate property listings perfectly well using the free search functions. Most sellers of commercial property are familiar with LoopNet and use it to list their properties, making this an excellent source for the investor to utilize. Other commercial sites, similar to LoopNet, have emerged of late, including BizBuySell.com, CityFeet.com, and CommercialRealtor.com. Although these may not be as popular for seller listings, many buyers many not yet be familiar with these options, and the investor may be able to find high-quality properties with less competition.

Most major national tenants that use the triple net lease property model list investment opportunities on their websites. Home Depot, Lowes, PetSmart, Wal-Mart, Walgreens, Albertson’s, Kroger, and most of major chain restaurants typically have investment opportunities available in multiple markets at any given time. Visit the company’s corporate website and search under “real estate,” “facilities,” “investor relations” or similar terms. In many cases, the site will provide specific details of what the tenant will consider in a triple net lease arrangement with an investor, including facility specifications. (For an excellent example, visit the Walgreens retail real estate inquiry page here: http://www.walgreens.com/topic/help/companyhelp/real_estate.jsp )

Although any one of these resources will serve the investor well in their search for triple net lease investment properties, using a combination of all of the above, depending on the specific location of the investor and the desired property, will yield the widest range of potential property opportunities, and allow the investor to make the most informed choice in their investment.

Investor Services: For investors that also need assistance with finding off market deals, analyzing returns, bringing in partners and financing options Call Ideal Location, Inc. 312-433-9300 x 20 for one on one free investor services consultations.

Related posts:

Commercial vs Residential Real Estate Investment (7.1)

Commercial Real Estate Buyers of Investment Property (6.9)

Invest in Commercial Debt not Properties in 2010 (5.4)

Finding Triple Net Lease Investment Properties

robert — Thu, 19 Apr 2012 17:21:04 +0000

A popular choice for real estate investors today are commercial properties, especially those with national tenants under triple net leases. These properties are attractive because, under a triple net lease agreement, the tenant is responsible for virtually all costs associated with the property, including taxes, insurance, maintenance, and upkeep. Not only do these properties build equity for the investor, they typically produce positive cash flow, reliably and almost immediately. For the tenant, triple net leases allow for complete control over the facility but without the inherent risks or cash outlay.

Triple net lease investment properties may be purchased with a tenant in place, or the investor may choose to structure the investment by identifying a tenant and then locating a property that meets their needs. Either way, there are a variety of options for locating these popular properties.

Real estate agents may be the first method an investor considers when planning to purchase a commercial property. Investors who have purchased residential investment properties do typically use the services of a licensed real estate agent, and may logically assume that commercial properties should be acquired the same way. Unfortunately, real estate agents may not always represent the best choice in this case. The commercial real estate industry varies greatly from how things are done in the residential market and commercial buyers’ agents – especially competent ones – are sometimes hard to locate.

In most states, regional multiple listing services, the gold standard for finding residential properties, are not a reliable source for locating commercial properties. Consequently, the investor’s real estate agent must be extremely familiar with the local market conditions and what properties are available that fit the investor’s specific needs. Unlike most residential purchases, an investor without an agent can negotiate with the seller to reduce the property’s purchase price by the amount that would normally be paid to an agent or broker. However, a good agent will be able to negotiate terms of purchase that may be just as favorable, sometimes more so.

Novice investors in triple net lease properties may be best served by having an agent, however many investors prefer to research and locate properties themselves. In that case, several reliable alternatives do exist. Depending on the investor’s local market, properties may be advertised in the local daily newspaper or in specific business journals. Online sources for locating properties include Craigslist, LoopNet, BizBuySell, CityFeet, and CommercialRealtor. Local commercial real estate firms may have listings on their site that you can peruse, although they may require the investor to provide contact information. Finally, many national tenants that engage in triple net leases may list potential investment opportunities on their websites. Companies such as Home Depot, Lowes, PetSmart, Walgreens, and Wal-Mart are excellent examples.

Whichever way the investor chooses to locate triple net lease investment properties, consulting with an attorney and tax professional is always a must prior to signing any legal documents or making a purchase with significant financial implications.

Triple Net Lease Office Buildings Attract Real Estate Investors

robert — Thu, 19 Apr 2012 16:53:22 +0000

NNN Class A Office

When considering the purchase of triple net lease investment properties, many types of real estate purchases will fit with a NNN lease structure. Depending on the investor’s goal however, some types may be better suited to meet those needs, however the most common types of properties are office buildings, retail properties, and industrial facilities.

Below we explore the most common types of office properties the investor may choose, to achieve the best return on investment from triple net lease agreements.

Office buildings and complexes may house almost any type and size tenant, and may be geared for one large tenant or many smaller groups. What type and level of tenant an office building can attract will depend upon the location, design, and quality of finishes and amenities. Based on desirability and the amount of rent a property can command, office space is usually classified as Class A (or Type A), Class B, Class C, and Class D.

Class A office space is the most preferable and attracts large, stable, national credit tenants for long-term leases. This type of building is newer, with high quality finishes and a high-profile location. Amenities are typically present such as covered parking, health club or workout facilities, and retail/restaurant amenities in a centralized lobby location. Class A office buildings provide the investor with the highest lease rates but the price for acquisition of this property profile will be accordingly higher.

Class B property is somewhat older but still in a desirable location. Class B buildings have been well-maintained and do not show obvious signs of wear or obsolescence. Some amenities are typically present in Class B space also. This type of property will attract good, stable tenants with long leases, but somewhat lower rental rates than Class A buildings. The cost to acquire these properties will be accordingly less expensive.

Class C buildings are usually below average in quality and appearance and in a less desirable location. These properties are still well maintained, but may not have been updated to a modern level of finishes. Few or no amenities are present in this type of property and individual office suites are typically smaller than in Class A and B properties. Class C buildings attract new and start-up companies or those that operate on a less high-profile basis. This property profile may be attractive to the novice investor because acquisition cost is typically low but with solid value.

Class D space is older, has not been well maintained, hasno amenities, and is located in undesirable locations. As the quality of space declines, so too does that level of tenant the property will attract and the amount of rent tenants will pay. Vacancy rates may be high. Although the cost to acquire these properties is low, the investor may have to expend capital to facilitate repairs and updates.

Each type of office property described above offers advantages to the investor in search of triple net lease investment property. The investor need only identify what type of property best fits their investment goals and pursue those opportunities.

Triple Net Lease Tenant – The Right Tenant is Key to Success

robert — Thu, 19 Apr 2012 16:24:52 +0000

Triple Net Lease Tenant

The key to success with a triple net lease property investment is locating (and keeping) the right tenant. The best tenant will be the one for whom the property is an excellent fit and who provides the right cash flow and security for the investor.

Based on credit worthiness (which may be determined with the help of Standard & Poor’s index or Moody’s reporting) and other factors, tenants may execute a short- or long-term lease and they may or may not accept periodic rent escalation clauses as a part of their lease agreement. A very stable tenant such as CVS or Walgreens may execute a 20- or 25-year lease but not agree to any increases in rent during that time. A local “mom and pop” restaurant may only execute a 5-year lease but may agree to steep rent increases each year. Whether the investor prefers to seek long term stability at a lower cash-on-cash return, or a short lease term with a larger cash flow, depends on how the investor seeks to enhance his property portfolio. The answer may well lie somewhere in between.

The location of the property, it’s size, shape, and configuration will greatly determine what type of tenant would thrive in the property. Location of the property will also determine what type of tenant is appropriate. For example, neither McDonalds nor Walgreens would likely be interested in a property that is not in a visible, high-traffic location, or one that was not in a clean and sanitary and well-maintained.

In addition to obtaining the potential tenant’s commercial credit rating, the investor should obtain and review the tenants audited financial statements, banking and financial records and references, and tax returns for both the business and its owners for the last five years. Sales data, inventory reports, income statements, and cash flow reports should also be requested and reviewed. Finally, the investor should request, investigate, and review any required licenses or certifications the tenant may require to operate as well as liability and other insurance data.

The investor should consult with a real estate and legal professionals to help determine what other information may be required to determine the suitability of a potential tenant. The ultimate value of any triple net lease investment property lies with the tenant and the associated lease agreement, and the investor must proceed accordingly when making this important determination.

Single Tenant Development Equity Partners For Triple Net Lease Deals

robert — Wed, 18 Apr 2012 18:56:55 +0000

Single Tenant Development Equity

Development of net lease properties may still be down from its peak of a few years ago, but it is coming back as retailers start to expand again. The economy is at a point right now where corporate clients are looking to start growing again and are looking at new sites for expansion. This trend offers an opportunity for real estate developers who focus on single tenant development.

The most active retailers are Family Dollar and Dollar General, which are expected to build a combined 1,000 stores this year. Other retailers expanding include Big Lots, Auto Zone, Advanced Auto CVS & Walgreens.

Independent developers that specializes in triple net-lease single tenant properties and need money to build them now have new options for equity available. Having a consistent source of equity for developers is critical to keep projects moving forward and grow their businesses faster.

Typically a single tenant NNN developer has a construction lender that will lend 80% loan to cost, having a partner that can then provide all of the equity for the deal can streamline the development process. The big NNN developers take advantage of one or two institutional investors backing the equity in all their deals. The challenge for smaller single tenant developers is that the typical deal size may be too small to interest the institutional funds.

Net lease properties, buildings occupied by specific single tenants with long-term leases in place before construction begins, are highly desired by our partners looking for stable, low-risk investments. Our partners focus solely on providing equity financing for net lease single-tenant properties as low as $500,000. The goal of our investors is to develop multi-year, multiple deal relationships with developers diversified by property type, tenant profile and geographical region.

If you are an independent developer of single tenant properties here are the typical criteria for determining a partnership candidate:

Property Characteristics:

Single tenant net lease development or re-development projects only
Property types include retail, restaurant, medical, industrial and office.
Projects may be located anywhere in the U.S. (the stronger the credit tenant and the longer the lease, the smaller the market).
Fully entitled, ready-to-start projects with minimal/identified environmental risk.

Investment Parameters:

Fund up to 100% of project’s equity, not to exceed 20% of project costs.
Minimum project budget per property: $500,000; maximum: $10 million.
Holding period: 1 to 1-1/2 years.
Funding to occur upon opening of construction loan and pulling permits.
Multiple deals with same tenant encouraged.
Investment structure is typically preferred equity or mezzanine debt.

Developer Characteristics:

Have a tenant relationship that ideally can expand to multiple projects
Have the construction and development expertise to handle the proposed project.
Ability to obtain a construction loan without any recourse
Have the financial wherewithal to handle cost overruns and penalties that may occur.

Tenant Requirements:

Investment-grade NNN tenants
Minimum lease term of 10 years.
Marketable lease format (NN considered if credit tenant)

Current Target Tenants:

Drug Store NNN Tenants: Walgreens CVS
Retail NNN Tenants: Family Dollar, Fred’s Grocery, Dollar General, Dollar Tree, Tractor Supply, Sherwin Williams, Staples
Grocery NNN Tenants: Gordon’s, Fresh and Easy, Smart and Final, Aldi’s
Restaurant NNN Tenants: Dunkin Donuts, Starbucks, McDonald’s, Del Taco, Whataburger, Wendy’s, Tim Horton’s, Yum Brands (Taco Bell, KFC), Roy Rogers, Jack in the Box, Sonic, Brinker Brands, Darden Brands, Panera Bread, Red Robin, BWW, Applebee’s, Chipotle, IHOP
Service NNN Tenants: Verizon, ATT, Most Large Banks
Medical NNN Tenants: Affordable Care, Divita, Fresenius
Auto NNN Tenants: Autozone, Advance Auto Parts, Bridgestone/Firestone, Discount Tire, Goodyear, O’Reilly’s, Tuffy’s

ATTENTION DEVELOPERS: If you are an independent developer who wants to do more deals make more money with less overhead and allow you to focus on what you do best, develop real estate then contact us. our real estate investment partners focus on providing equity capital for net lease development deals to be your go to equity source.