Triple Net Lease Real Estate Investment

by The Real Estate Buyers

in ,
Triple Net Lease Real Estate Investment

Many real estate investors are realizing Triple Net Lease Real Estate Investments offer a more consistent return and a truly turn key investment property opportunity.  Investors have to ask themselves why invest in a vacation home or residential investment with potential low returns and high maintenance?

Triple Net Lease Real Estate Investment can be anything from a Walgreens Pharmacy to a Starbucks Coffee Shop to a Dollar General Store or even a large a Best Buy Retail site.  Net Leased real estate investment opportunities are usually standing buildings that are leased to respective tenants for long terms.  Ten to twenty Five Year lease terms are very common with triple net tenants as once established the tenants want to stay at a given location  for the long term.  You certainly cant say the same about residential tenants or multi familyreal estate investment with annual turnover of tenants and the property management headaches that come with it.

Triple Net Lease Real Estate Investments offer the benefit of little or no management responsibilities and the real estate investor receives the rent with very little or often NO involvement at all.  Typically the tenant is responsible for most if not all of the expenses of the property. The reason that a tenant will use a NNN leases is simple:  The leases enable them to maintain ownership control of the real estate without requiring them to expend any money up-front. Most large commercial companies prefer to lease property rather than own it.

They make this decision to save on capital. Freed of such high initial costs up-front, commercial tenants make greater investments in other critical aspects of their businesses, i.e., financing core competencies, increasing acquisition, paying down debt, and diverting capital into more productive capacities. Recognizing that owning a significant amount of real estate is not the most productive use of their assets, companies take advantage of how triple net leases work in order to achieve greater capital gains.

Real Estate investors also love triple net real estate investments. By acquiring a triple net lease property and being a landlord to a long term tenant that prefers to lease the real estate investor ensures a stable, secure, and long-term cash flow for the investor at the same time that the operating costs and capital improvements are being paid for by the tenant. This eliminates the major sources of hassle commonly associated with more management-intensive real estate holdings.

Additionally one way savvy investors really leverage their Triple Net Lease Real Estate Investment returns is via a 1031 Exchange.  A 1031 Investment Property Exchange refers to IRS Code Section that allows for the tax deferred exchange of real & personal property.  Thus an investor can diversify, leverage, trade-up or relocate their real estate investment properties and not get penalized by the government by paying capital gains taxes or recapture taxes.  1031 Exchanges are a great wealth building opportunity and a powerful way to adjust your real estate investments to make your portfolio reflect your investment choices and maximize your returns, particulraly when combined with the stability of single tenant investments.

NNN Real Estate Investment

The BuyersUtopia network has access to a multitude of single tenant  NNN real estate investment  properties in almost every state and all different capitalization rate ranges.  Our Triple Net Lease Real Estate Investment include but are not limited to the following tenants:

  • Walgreens Triple Net Lease Real Estate Investment
  • CVS Triple Net Lease Investment Property
  • Best Buy Triple Net Lease Real Estate Investment
  • Starbucks Triple Net Lease Investment Property
  • Dollar General Triple Net Lease Real Estate Investment
  • Auto Zone Triple Net Lease Investment Property
  • Advanced Auto Parts Triple Net Lease Real Estate Investment
  • Office Depot  Triple Net Lease Investment Property
  • Home Depot Triple Net Lease Real Estate Investment
  • Office Max Triple Net Lease Investment Property
  • Taco Bell Triple Net Lease Real Estate Investment
  • McDonalds Triple Net Lease Investment Property
  • Arbys Triple Net Lease Real Estate Investment
  • Buffalo Wild Wings Triple Net Lease Investment Property
  • Kohls Triple Net Lease Real Estate Investment
  • Dennys Triple Net Lease Investment Property
  • Chilis Triple Net Lease Real Estate Investment
  • Burger King Triple Net Lease Investment Property
  • Rite Aid Triple Net Lease Real Estate Investment
  • Carl’s Jr Triple Net Lease Investment Property
  • AppleBees Triple Net Lease Real Estate Investment
  • Lowes Triple Net Lease Investment Property
  • Wal-Mart Triple Net Lease Real Estate Investment
  • Whole Foods Triple Net Lease Investment Property
  • Chipotle Triple Net Lease Real Estate Investment
  • Chase Bank Triple Net Lease Investment Property

These single tenant triple net lease investment properties can be used in either a 1031 exchange or as a stand alone NNN real estate investment acquisition.  Contact  us today to find out what opportunities we have near you, the lease  lengths, cap rates and pricing. Cap Rates are typically based on the tenant credit rating and location.  Common Capitalization rates range anywhere from 5.5%-10% on Triple Net Lease Properties depending on tenant. Pricing of triple net investment properties ranges on the low end from $750K ( for a Dollar General) bumps up to the low $1M Range ( for Starbucks, Arby’s & Burger King type tenants). Free Standing Pharmacies are trading in the $5M-$7M Range ( RiteAid, CVS, Walgreens) . Big Box Retail is trading in the $8M-$12M range ( BestBuy, HomeDepot, Lowes).  We have triple net lease real estate investment opportunities for every investor.  From the first time triple net investor to a seasoned triple net investor who is in his 45 identification period in a 1031 investment property exchange.  Contact us and let us work with you on your triple net lease investment options.

Related posts:

  1. Office Depot Real Estate Investment (8.3)
  2. Investment Property Tenant Tips (7.8)
  3. Investment Property Exchange (5.6)