Single Tenant NNN Feeding Frenzy
This is a follow up to what I posted back on the 13th. I’m not going to editorialize too much on this article from Mark Heschmeyer at CoStar News, but to second what’s he’s saying in that this segment of the market, single tenant, NNN, long corporate lease, is real hot and real competitive.
I have 1031 uplegs, whereby I need this kind of product and its difficult finding it. Worse yet, when I do, the buyer needs to be prepared to move within days or it’s gone.
Here’s a comment that’s pretty typical of what a broker hears from a potential buyer
“I purchased a new Walgreen’s earlier in the year at a 7.25% cap rate and am not interested in further drug stores as I want to diversify and not be too deep into any one segment. I’d be interested in more information from A or better credits like Verizon and the federal government. (Would need to negotiate a better deal, as 6% is not overly enticing). Not interested in a 1031… just a cash purchase for the right opportunity. I have been a muni bond investor for many years, but don’t like the yields and the credits are not as good as they used to be… thus my interest in high quality long-term leases with strong tenants and in good locations (ultimate security).”
I’m also looking for :
“C store with or without gas, prefers without, for 1031 upleg. $1.2 to around $1.6mil. Need a corporate guarantee NNN or preferably a NNN absolute, single tenant, long lease 7-Eleven, Circle K, Speedway, ARCO AM-PM or similar in the following states: AZ, CA, NV, OR, WA, CO, UT, FL, GA, SC, TX, VT, NH, ME, MA, CT, MD. Fast food (BK, JiB, McD, Wendy’s, KFC, Taco Bell, Pizza Hut) with corporate lease is also fine. Multi tenant is ok if the other tenant is also national credit NNN. That means no dry cleaners, Laundromats, nail salons, liquor stores etc. No ground leases.
If you have anything, please email what you have to email@example.com
CoStar News – Article – Niche Targets Spread the Playing Field in Single Tenant Arena