Basics:
20 year NNN lease with a 6.75% cap selling at 697 psf
Looks to be a basic hold and collect play. Nothing to do with the property for a 20 year period besides collect cash
20 year NNN lease with a 6.75% cap selling at 697 psf
Looks to be a basic hold and collect play. Nothing to do with the property for a 20 year period besides collect cash
Location:
Great location. Proposed whole foods across the street. A lot of big bx stores around it.
Affluent neighborhood with $140K+in income.
Far from a nearby city but thats not always a bad thing.
Great location. Proposed whole foods across the street. A lot of big bx stores around it.
Affluent neighborhood with $140K+in income.
Far from a nearby city but thats not always a bad thing.
Price:
697 psf is pretty expensive especially for an area so far from the city. But most likely doing this because of the high cap of almost 7%
697 psf is pretty expensive especially for an area so far from the city. But most likely doing this because of the high cap of almost 7%
Lease:
Since this building is all about the 20 year tenant it is important the tenant and lease are in order.
Public company who has guaranteed the store.
Absolute triple net.
Pretty much nothing for you to do besides collect rent.
Since this building is all about the 20 year tenant it is important the tenant and lease are in order.
Public company who has guaranteed the store.
Absolute triple net.
Pretty much nothing for you to do besides collect rent.
Why would anyone buy this?
Some people might buy this to lower their portfolio risk by having a steady stream of cash flow.
Some might buy this to retire on the cash flow as well.
Some people might buy this to lower their portfolio risk by having a steady stream of cash flow.
Some might buy this to retire on the cash flow as well.
Conclusion:
Very high Purchase price PSF. But the counterweight to that is the high cap rate for a 20 year NNN lease.
If one were to buy this they would have to weight the higher purchase price with the higher cap to see what they are comfortable with
Everythings a trade off
Very high Purchase price PSF. But the counterweight to that is the high cap rate for a 20 year NNN lease.
If one were to buy this they would have to weight the higher purchase price with the higher cap to see what they are comfortable with
Everythings a trade off
