What is a Triple Net Lease?
A Triple Net Lease (NNN) is a lease that heavily reduces landlord responsibility by the credit tenant paying all Taxes, Insurance and Maintenance, typically performed with national credit tenants. The Tripe Net lease is a great alternative for a landlord that is interested in reducing their management responsibilities, and lenders tend to label them as less-risky investments due to the credit worthiness of the tenant.
What are Triple Net Leased Investments?
Our Triple Net deals provide investors with the opportunity to be the landlord of a variety of credit tenants ranging from nationwide drugstores to nationwide banks, such as the following: Walgreens, Wal-Mart, Burger King, IHOP, Denny's, Rite Aid, CVS, Family Dollar, Dollar General, Taco Bell, Applebee's, Arby's, 7-Eleven, Inc., Sherwin Williams, and Winn-Dixie.
Many investors are attracted to Triple Net leases because of the reduced management responsibilities as well as the overall credit ratings of the tenants, as most national chains operate under the Triple Net lease structure.
The credit worthiness of the tenant combined with zero landlord responsibilities provide for minimum risk levels to the investor and to the lender. The insurance policy the landlord receives is that the Lessee is obligated to perform under the lease and pay for all expenses pertaining to operating the property. Typically, these include property taxes, insurance, and property maintenance.
What kind of returns can an investor expect from these kinds of properties?
Returns are based on Capitalization Rates, or what a person can earn on their money during the first year of an investment, and they range from 5-10% for these types of deals.
Investors that are skeptical of the stock market can seek great refuge in Triple Net investments. The increased demand, coupled with low interest rates has driven cap rates down over the years, which means the property values have risen dramatically.
Triple net leases provide a great stepping stone into the retail world for those considering exiting the head ache's of owning and managing apartment complexes.
What is Viking International's experience with Triple Net?
Viking International has been involved in hundreds of millions of dollars in transactions over the past 33 years and we have life-long relationships with our partners. As a high-ranking and full service brokerage, Viking International can help locate the best of these deals, structure the transactions, write the offers, and will accompany the transaction through to the closing - all with maximizing our clients existing under-performing equities in mind.
Although many types of corporate real estate are potential candidates, we prefer working with national companies such as the following in order to maximize investor returns: Mc Donald’s, Taco Bell, Burger King, Denny’s, IHOP, Seven- Eleven, AutoZone, EconoLube, CVS, Walgreens Drugs, Office Depot, Albertson’s, KinderCare, Tutor-Time (child care), and certain Medical Office Buildings.
Why should I leave what I have now?
We understand your level of comfort in what you have worked hard to own. Many others have felt similar. However, we have found that many people that have made the switch have maximized their equity and in some cases have even doubled or tripled their annual net income; all while reducing their level of management (or headaches).
Due to current market conditions, businesses and real estate owners have a need to convert existing real estate assets into cash and find cost-effective and efficient alternatives to funding acquisitions, special investment opportunities, construction of new facilities, and expansion of existing franchises. Banks also like lending to national credit tenants over other alternatives.
Astute financial officers recognize this as an opportunity to enhance the corporate balance sheet by raising cash without the costly, time-consuming process of a new debt issue, and without any restrictive financial covenants. This corporate demand provides investors the opportunity to own a property where they lease to a national credit tenant.
Benefits of Triple Net Lease Opportunities:
A Triple Net Lease (NNN) is a lease that heavily reduces landlord responsibility by the credit tenant paying all Taxes, Insurance and Maintenance, typically performed with national credit tenants. The Tripe Net lease is a great alternative for a landlord that is interested in reducing their management responsibilities, and lenders tend to label them as less-risky investments due to the credit worthiness of the tenant.
What are Triple Net Leased Investments?
Our Triple Net deals provide investors with the opportunity to be the landlord of a variety of credit tenants ranging from nationwide drugstores to nationwide banks, such as the following: Walgreens, Wal-Mart, Burger King, IHOP, Denny's, Rite Aid, CVS, Family Dollar, Dollar General, Taco Bell, Applebee's, Arby's, 7-Eleven, Inc., Sherwin Williams, and Winn-Dixie.
Many investors are attracted to Triple Net leases because of the reduced management responsibilities as well as the overall credit ratings of the tenants, as most national chains operate under the Triple Net lease structure.
The credit worthiness of the tenant combined with zero landlord responsibilities provide for minimum risk levels to the investor and to the lender. The insurance policy the landlord receives is that the Lessee is obligated to perform under the lease and pay for all expenses pertaining to operating the property. Typically, these include property taxes, insurance, and property maintenance.
What kind of returns can an investor expect from these kinds of properties?
Returns are based on Capitalization Rates, or what a person can earn on their money during the first year of an investment, and they range from 5-10% for these types of deals.
Investors that are skeptical of the stock market can seek great refuge in Triple Net investments. The increased demand, coupled with low interest rates has driven cap rates down over the years, which means the property values have risen dramatically.
Triple net leases provide a great stepping stone into the retail world for those considering exiting the head ache's of owning and managing apartment complexes.
What is Viking International's experience with Triple Net?
Viking International has been involved in hundreds of millions of dollars in transactions over the past 33 years and we have life-long relationships with our partners. As a high-ranking and full service brokerage, Viking International can help locate the best of these deals, structure the transactions, write the offers, and will accompany the transaction through to the closing - all with maximizing our clients existing under-performing equities in mind.
Although many types of corporate real estate are potential candidates, we prefer working with national companies such as the following in order to maximize investor returns: Mc Donald’s, Taco Bell, Burger King, Denny’s, IHOP, Seven- Eleven, AutoZone, EconoLube, CVS, Walgreens Drugs, Office Depot, Albertson’s, KinderCare, Tutor-Time (child care), and certain Medical Office Buildings.
Why should I leave what I have now?
We understand your level of comfort in what you have worked hard to own. Many others have felt similar. However, we have found that many people that have made the switch have maximized their equity and in some cases have even doubled or tripled their annual net income; all while reducing their level of management (or headaches).
Due to current market conditions, businesses and real estate owners have a need to convert existing real estate assets into cash and find cost-effective and efficient alternatives to funding acquisitions, special investment opportunities, construction of new facilities, and expansion of existing franchises. Banks also like lending to national credit tenants over other alternatives.
Astute financial officers recognize this as an opportunity to enhance the corporate balance sheet by raising cash without the costly, time-consuming process of a new debt issue, and without any restrictive financial covenants. This corporate demand provides investors the opportunity to own a property where they lease to a national credit tenant.
Benefits of Triple Net Lease Opportunities:
- High Return on Investment. Security of a bond but with a Real Estate Return.
- Lower interest financing: With National tenants, lenders offer very favorable rate.
- Leases have rental increase built into the lease based CPI, Percentage, Cost of living, etc.
- Renewal options & Flexible terms are part of the lease.
- You start with a new deductible depreciation basis that can be accelerated by using the cost segregation method of depreciation if so elected.
- No day to day management responsibilities.
- Less vacancy issues, as most are single-user tenants.
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