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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.

CVS NNN For Sale

NNN Drug Store Cap Rates and NNN Market Report

NET LEASE DRUG STORE REPORT RELEASED The Boulder Group has released The Net Lease Drug Store Report. The report provides comprehensive numbers and analysis of the net lease drug store property market.

Highlights of the report include:

  • Cap rates for Walgreens, CVS and Rite Aid are at historic lows
  • The supply of CVS properties on the market increased by 64%
  • Drug store properties are commanding a 75 basis point premium over the retail net lease market

cap rate spreads

askign cap by lease term

The full report can be found here: Net Lease NNN Drugstore Report

CVS NNN For Sale - Available NNN deals

NET LEASED PROPERTIES for saleCVS 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

CVS NNN Memphis For Sale

CVS NNN FL For Sale

CVS NNN TX For Sale

CVS NNN FL For Sale 2

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

Understanding Zero Cash Flow NNN Deals

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While many investors purchase NNN properties for their steady cash flow, that's not the only way to buy one. Some real estate owners use their NNN investments as ways to minimize their tax exposure and to maximize the benefits of leverage. Zero cash flow deals might not provide cash flow in the present, but they offer significant returns in the long-term. Most zero cash flow NNN investments have two pieces. First, you purchase a high quality NNN investment with a long-term lease and a tenant with a high credit rating. Drug stores like Walgreens and CVS are popular choices. Next, you obtain special zero cash flow financing. This NNN financing has an amortization period that is fixed to the term of the lease and a flat rate. Typically, you put between 10 and 20 percent down and, when the lease's initial term ends, you have a paid-off building.Zero Cash Flow Deal

The Short and Middle Term Horizon

While you don't cash flow from rents with a zero cash flow NNN deal, you usually make money on it for most of the time you own it. The depreciation that it throws off more than covers your principal payments, leaving you with a net loss on your taxes that you can use to offset other gains.

In the middle term of the NNN investment, the principal payments gradually grow. Once they are more than your depreciation, you may end up being subject to phantom income, which is taxable. This is the one key drawback to NNN zero cash flow deals. However, the phantom income can be offset by a Section 467 loan.

The Long-Term Horizon

At the end of the lease, your loan ends and you own your NNN building free and clear. With any luck, the tenant exercises its option and you will own a cashflow asset with no debt. In a worst-case scenario, the NNN tenant moves out. After 20 or more years of appreciation, it's reasonable to assume that the NNN building would be worth as much vacant as it was occupied way-back-when.

Zero Cash Flow and 1031

One of the advantages of zero cash flow NNN investments is that they allow you to put relatively small amounts of money down. This makes them a perfect place to park extra capital from a 1031 exchange. If you have money left over after buying your primary investment, buying a zero cash flow NNN can save you from paying boot. ZCF deals also allow an investor to more closely match debt and equity requirements from a 1031 Exchange.

For a free list of available Zero Cash Flow deals call Thomas at 1-866-539-1777 or email him here.