Prestwick Investments, LLC
Representing Buyers And Sellers Of Retail Net Leased Real Estate Mission StatementIf your investment objectives match most of the objectives shown below, Triple Net Leased Retail Real Estate is an excellent investment strategy.
I Want Income From Commercial Real Estate:
Real Estate appreciates, generates cash flow and shelters income. Triple Net Leases from national companies have a low default rate and tenants commit to long term leases.
I Want To Leverage My Investment with 20% - 25% Down Payment
Financing is readily available because the tenants have strong credit ratings. Equity of 20%- 25% is common with loan terms of 10-15 years and even longer amortization schedules.
I Want A Long Term Tenant
"Triple Net Leases" are usually 10, 15, or 20 years with two or more option periods.
I Want To Avoid Taxes If I Sell And Reinvest
IRS 1031 exemption allows a tax free sale if proceeds are reinvested in like kind property.
I Want Income Security:
National tenants usually have good credit ratings with very low default rates. Leases are guaranteed by the parent corporation.
I Want Predictable Rent Increases
" Triple Net Leases" have graduated rent schedules though out the term of the lease and the option periods.
I Do Not Want Management Headaches
"Triple Net Leases" requires the tenant to pay for maintenance, taxes and insurance.
I Want To Secure My Children's Future
Even though a Triple Net Lease from a national company is a secure long term investment, at some point the lease will expire. It is important that the proper due diligence on the location be conducted. If the location is good, then it should produce income for future generations. Populations of 50,000-100,000 within 5 miles should be a good metric.
What Are Triple Net Retail Leases?
Most national retailers would prefer to invest capital in their core business rather than own their real estate. They regard rent as a cost of operations and seek to sign long-term leases. Investors own the property in fee simple. Tenants sign triple net leases, which tend to have initial terms of 10, 15 or 20 years with two or more option periods.
The tenant assumes responsibility for property taxes, insurance and maintenance. National tenants usually have credit ratings that help investors evaluate default risks. The above characteristics allow investors to minimize management responsibilities and invest across all geographies.
These investments are often referred to as “bond leases” because of hands off management and their secure nature. Unlike bonds, investors benefit from asset appreciation, increase in cash on cash return by financing and benefit from the tax shelter due to depreciation and the IRS 1031 exchange privileges.
Detailed Information on Retail Net Leased Real Estate
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