Recent Closings - Triple Net 1031 Exchange Deals

We are pleased to announce the following recent closings: NNN Florida Walgreens: $8,662,371 - Sourced off-market deal through developer and broker network. Record setting cap rate of 4.85%. All cash transaction with 1031 exchange buyer.

Triple Net CVS: $6,450,000 - Low leverage 1031 exchange buyer. 24 years left on absolute net lease - 5.32% cap rate. Solid midwest location.

Net Leased Dollar General: ~ $1MM - high cap rate deal 8%+ with 7+ years on NN lease. Growing SE US location.

For more details or help on your NNN 1031 exchange, give us a ring at 1-866-539-1777.

Sell Your Commercial Property

Is your commercial property driving you crazy? Too much management? Not enough income? Do you need to sell your commercial property fast? Not sure what to do with your commercial property? Time to move on? Or... just need help selling your commercial property for the maximum value?

If you answered "yes" you are at the right place.

We are your national commercial property sales solution.

Sell My Commercial Property

We buy commercial property:

• any location
• any price
• any condition
• any situation

We love to buy:

• commercial buildings
• commercial land
• apartment buildings
• trailer parks

Andrus & Morgan works with commercial property owners nationwide. We will buy your commercial property quickly for cash or help you figure out the best course of action.

CVS NNN For Sale - Available NNN deals

CVS NNN deals continue to be in hot demand. Long term net leases of 20 or more years with a solid credit rated and no landlord responsibilities. CVS NNN make great 1031 Exchange replacement properties.

Here is a quick list of CVS NNN properties for sale that have been of interest to our NNN clients and may be of interest to as well.

CVS NNN Properties For Sale

Call 1-970-618-4086 for more info on these CVS NNN Properties For Sale.

The Vitamin Vault - Walgreens in Historic Bank

This is a Walgreens store located inside a historic bank building in Chicago. It has been a very talked about redevelopment project including Huffington Post and Forbes. I came across this photo on Instagram:
from Instagram http://bit.ly/1qGCAPW
via jorgemus
The Vitamin Vault #chicago #architecture #bank #walgreens #farmacy #vitamins #vault #door #metal #health #shopping #design

Here is an exterior shot before the signs went up:

Adaptive Reuse - School, Church & Starbucks

Great example of adaptive reuse project with corporate tenants:

Old School O7 in Phoenix, AZ

Vital Stats Opened: 2013

Owned: Wetta Ventures

Size: +/- 9,000 SF

Team: PK Associates, RSP, Chasse Building Team, MSA Engineers, TwinEngine Design, Airpark Signs & Graphics

Old School O7 ("O" for Osborn Road; "7" for 7th Street) is an adaptive reuse and new construction project in Midtown Phoenix. The project consists of a 1,700-square foot freestanding drive thru building that is leased to Starbucks. The existing 4,075-square foot church, built in 1948, will be re-purposed as a new restaurant for Z'Tejas new concept, Taco Guild. The remaining, 3,518 square feet housed in the 1955 school building will serve as new shop space for general retail uses. The project represents a one of kind redevelopment project with a 100+ year history - a combination of new construction and adaptive reuse that will spur further economic growth in the neighborhood.

What people are saying: ‘This is a great example of responsible development, as it retains a piece of Phoenix history while meeting modern needs’ -Tom Simplot, Phoenix City Councilman

source via Old School O7 –.

Former Bank Building #adaptivereuse as AT&T retail #cre

from Instagram http://bit.ly/1qGCAPS
via realtmo
Former Bank Building #adaptivereuse as AT&T retail #cre

The Pros and Cons of Triple Net Properties

In some ways, triple net properties are as much fixed-income investments as they are real estate vehicles. Offering little to no management responsibility and long-term fixed incomes with the potential for gradual increases, they act like bonds. However, underlying their financial structures, they are still real estate and carry the same eventual risks and challenges. Here are some of the pros and cons of triple net lease properties.:

Pro: Stable Income Con: Limited Upside Triple net leases are usually structured with a flat rent or with fixed increases. When you buy a $2,000,000 property at a 7.5 percent cap, you know that you can count on $150,000 per year for the life of the lease. Many triple-net properties also have rent increases of 1 to 3 percent per year built-in. They provide some growth, but don't necessarily keep up with inflation. However, this is no different from buying a corporate, Treasury or municipal bond with a fixed rate of return.

Pro: Long-Term 100% Occupancy Con: Risk of 100% Vacancy Most triple net properties come on the market with a lease of at least 10 years, with some having initial terms as long as 25 years. This gives you a long time during which you don't have to worry about partial or full vacancy. The drawback is that when the lease does expire, it's an all-or-nothing proposition. The same occurs in the event of a tenant default, although careful due diligence before purchase can reduce the risk of this occurring.

Pro: Attractive Cap Rates Con: High Price Relative to Underlying Value Single tenant properties typically trade at attractive cap rates that are hundreds of basis points above comparable non-real estate investments. They're also frequently priced lower than more traditional investment real estate alternatives on a cap rate basis. A large portion of their value comes from their income stream, though, meaning that they could lose value when vacant or as their remaining lease term decreases.

Pro: No Management Con: CapEx at Rollover True triple net properties are structured so that the owner has no responsibilities whatsoever during the lease period, while others transfer some capital expenditures to the owner. In either case, the ownership experience is very different from traditional real estate. However, when the lease rolls over, owners have to get involved in the re-leasing process and in any necessary capital expenditures to prepare for a new tenant.

What do you see as the benefits and risk?

Buy a NNN Property

Contact Thomas Morgan, CCIM Triple Net NNN Broker at 1-866-539-1777

TMO sells $12M Walgreens Property

In mid August, TMO represented the buyer of a northern California NNN Walgreens property. The property sold for $12,184,846 and is leased on an absolute triple net basis to Walgreens (Ticker: WAG) on a 75 year lease with 24 firm years remaining.  The buyer was a privately held real estate investment company from New York who was in a 1031 Exchange.  The seller was represented by Capital Pacific's San Francisco office.  The low leverage transaction was financed by Lafayette Life Insurance Company  which was placed by Ed Isola from Isola & Associates.

For further details about the cap rate and financing terms, please contact Thomas Morgan, CCIM via email or toll free at 1-866-539-1777.

Buy a NNN Walgreens

We sell Walgreens throughout the entire U.S.! Ask about a FREE no obligation NNN consultation.

Contact TMO to find out more about the benefits of Walgreens Real Estate Investments.

1.866.539.1777

Reuse and redevelopment of former bank branches

Put your thinking cap on.  How do we reuse and re-purpose all these old buildings? It seems to me the "greenest" building is an existing one.  Why build new when you can buy for 20% of replacement cost?

Specifically, this is a former Citibank branch in a decent location within a major western MSA. The building is about 10,000 sf total (half ground level and half basement). Branch is fully finished and built out as a bank with drive thru lanes, teller counters, office, conference rooms and all furniture. It is for sale or for lease and owner is open to redevelopment.

Let me know your ideas.....

Networking Opportunity for Reuse of Existing Buildings

Also, if you are interested in reuse and redevelopment of existing buildings please let me know. I will be forming a networking group of those interested. This would also go for properties that you own or have listed that are taking a long time to sell/lease, are functionally obsolete or are just plain "weird". I am thinking we can help each other out with some regular brainstorming sessions of how to redevelop and reuse odd buildings and make them easier to sell or lease.  If interested, email here or tweet me.

Why are drug dealers the best tenants?

Owning commercial investment property is a great pleasure especially when you have good solid tenants.

Marijuana pays the rent.

In Denver and California commercial retail property owners have found that "pot dispensaries" have filled vacant spaces in the down economy.

"Looking at California, the pioneer state of medical marijuana, shows how great the demand really is for medical marijuana. One study reported that Los Angeles county alone has over 800 marijuana dispensaries."

But the "high" does not last forever.

Considering pot is still illegal, it may be time to find another tenant.

What about a drug dealer that has $72 billion in revenue and a S&P rating of A?

This is not your back alley drug dealer. This drug dealer in on busiest corners. Has well lit parking lots. Incredible signage. Is open 24 hours an has 7,830 stores worldwide.

This drug dealer is Walgreens.

As a commercial property investor looking for long term passive income, you have to consider a Walgreens.  Walgreens typically signs 75 year leases.  Walgreens has the best locations. Walgreens leases are true triple net meaning the landlord has NO responsibilities. Absolutely none.  The owner sits back and deposits the monthly rent.

Triple Net Walgreens range from $4M to $12M and easily produce a 6%+ annual yield for an all cash purchase. Non-recourse financing is easy to obtain especially at 60% or less LTV at sub 5% interest rates which can increase the overall annual yield to 8% or better.

Here are some triple net Walgreens currently for sale around the US.  Contact TMO for more information on any of them or to set up a free no-obligation real estate investment consultation.

Walgreens NNN Real Estate For Sale

Walgreens NNN Real Estate

• PA
• $6,770,000
• Cap Rate: 6.50%

Absolute-Net Lease of 75 years. "A" Credit Rating by Standard and Poors.

Walgreens NNN Property

• OK
• $4,950,000
• 6.61% cap rate

Located in the Oklahoma City MSA, Investment grade tenant, Over 22 years remain on lease, Adjacent to I-40 interchange

Walgreens Triple Net Property

• FL
• $10,915,000
• Cap Rate 6%

Rare rent increase, absolute NNN lease, daily traffic count exceeds 44,500

Walgreens Triple Net Real Estate

• FL
• $3,304,000
• 5.75%

75 years simple Ground lease, irreplaceable corner location

Walgreens Net Leased Property

• IL
• $5,578,000
• 7.35%

Established Walgreens Location Operating Since 1957. 60 Years Lease - Strong Store Sales. Less than One-Mile from Advocate Trinity Hospital.

Great NNN real estate.

Contact TMO about these NNN Walgreens. Toll free 1.866.539.1777 or e-mail.

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How to Select the Best Triple Net Broker

Given that a net-leased investment typically costs millions of dollars, finding a good triple net broker is particularly important. Working with a good triple net broker will give you better access to inventory, better financing, and a better investment result. Here are a few things to look for in your quest for a top-line triple net broker. Fundamental Knowledge Many of the triple net broker firms in the market lack a solid understanding of the fundamentals of an NNN investment. Look for a triple net broker who knows the difference between a double net, a triple net, and a "true" triple net lease. Your triple net broker should also understand the credit rating system, as this will help them, and you, measure the risk of a given tenant.

Access to Inventory A strong NNN broker will have a large and diverse inventory consisting of a mixture of their own listings as well as properties offered by other triple net broker companies and off-market deals. This will let you choose from a number of different properties to find the right mix of lease terms, lease length, and tenant quality.

Access to Financing A good triple net broker knows that the lender can make or break the deal. As such, you should look for a triple net broker who either has an in-house commercial mortgage broker or a strong relationship with an outside broker. Your triple net broker should also understand the many different financing options available, including bank financing, life insurance financing, conduit debt and the "CTL" credit tenant lease programs that provide long-term fixed rate debt for NNN assets.

Client-Focused Business Your triple net broker should take some time to get to know you and your goals. They should then show you appropriate property. If, for instance, you express a desire to have long-term stable income and your triple net broker shows you properties with five or fewer years remaining on the lease, you may want to select someone else. Watch for a NNN broker who does not attempt to saddle you with more debt than you want. Although some debt carries a number of benefits, it also carries risk, and a good triple net broker will help you strike the right balance.

Experience Your triple net broker should have a few deals under his or her belt. Although some of the most active triple net broker teams in the company focus on seller representation, there are a large number of good buyer representatives who have amassed a large resume of experience. Work with a triple net broker like that, and if they have a well-respected designation, like CCIM, that is an additional plus.

Contact TMO to find out more about the benefits of Triple Net Leased Real Estate Investments. 1.866.539.1777

TMO sells another net leased TSC

TMO has just closed on the sale of a NNN property in Fayetteville, NC that is net leased to Tractor Supply Company.   The sale price was just over $3.2M nearing an 8% cap rate.  TMO represented the buyer who is a private investor.  The seller was represented by Brad Moulder and Ryan Butler of Stan Johnson Company (fellow CCIM's).

Buy a Tractor Supply NNN Property

The property is leased on an absolute net basis to TSC for another 10 years ensuring a long term passive investment for the owner.  Tractor Supply Company is an operator of retail farm and ranch stores in the United States.  As of December 25, 2010, the Company operated 1,001 retail farm and ranch stores in 44 states and had sales over $3B.

TMO provides clients with passive investment opportunities like this around the U.S.  Net leased properties give investors peace of mind, long term stable cash flows with very low risk.

Contact TMO for a free investment evaluation via email or toll free at 1.866.539.1777

You can see all the pictures of the property on TMO's flickr stream.

TMO sells $2.24M net leased Tractor Supply

TMO is pleased to have represented a private investor in the purchase of a NNN leased Tractor Supply property in Sweetwater, TX.  The all cash transaction closed in under 30 days for $2,242,500 at a cap rate of 8%.

Buy a Tractor Supply NNN Property

"Tractor Supply (TSCO) is a great reliable tenant with a solid business model which provides my client with peace of mind for years to come." says Thomas Morgan, CCIM.  "TSC's may be in smaller markets but that is where their customers are and they serve the rural farming towns perfectly.  Compared to a NNN Walgreens or fast food NNN investment, TSC's have a lot of residual value in the real estate as they are on large lots, usually 4-5 acres and have decent size buildings of around 20,000 sf built of block."

Lior Regenstreif of Marcus Millichap represented the Seller.