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Surround Yourself with Experienced Professionals When Purchasing Your NNN Asset

In the decade following “The Great Recession” net lease assets have forged their place amongst the portfolios of real estate investors. The increasing popularity of net lease assets has permitted the capitalization rates (cap rates) of these assets to remain stable, even after significant interest rate increases in recent months. Despite a 62 BPS increase in the 10-Yr Treasury Note yield since Quarter 1 2016, cap rates on single tenant net lease (STNL) properties have decreased 13 BPS over the same time period.…

AmySurround Yourself with Experienced Professionals When Purchasing Your NNN Asset

Three Common Net Lease Acquisition Mistakes

Real estate has become the largest sector of the US economy over the last 50 years. The real estate sector currently composes 13.1% of the United States’ GDP, and produces $2.4 Trillion annually. The popularity of real estate as an investment stems from the tangible nature of the assets purchased, and the security provided from long term leases. Real estate has become one of the largest asset classes in the world, and investors have begun to recognize single tenant net lease (STNL) properties as one of the best investment types available. These properties have minimal landlord obligations, as the tenant …

AmyThree Common Net Lease Acquisition Mistakes

1031 Exchange Outlook

Congressional members from both parties have discussed reforming the tax code over the coming years. House Republicans, led by Paul Ryan, introduced “A Better Way,” while Democratic Tax reform was introduced under Barack Obama’s FY 2017 Budget Proposal. “A Better Way” and President Trump’s tax proposal, make no mention of repealing Section 1031, and does not include provisions to ensure it remains unchanged if tax reform occurs. This could have a significant impact on the Triple Net Lease market and deal flow if it is not addressed.

President Trump has indicated his desire to simplify the tax code, …

Matador Solutions1031 Exchange Outlook

Evaluating a Single Tenant Net Lease (STNL) Investment

The old adage is location, location, location.  However, that’s only one small part in evaluating a net lease investment. There are actually several key components you must look at when analyzing any opportunity.…

AmyEvaluating a Single Tenant Net Lease (STNL) Investment

Market Expectations

We’re closing out the first quarter of 2017 and expectations on both sides of the table are set. With the new administration, sellers believe that even with a slight uptick in interest rates, they will still be able to garner the fantastically low cap rates we have been achieving for the last several years. Conversely, buyers are of the mindset the needle will start to point in their favor as the increasing interest rates will continue to push cap rates, providing an advantage at the negotiating table. Ultimately, what we are seeing in the net lease market is a stalemate.…

Matador SolutionsMarket Expectations

How Will Current Legislation and Regulatory Proposals Affect Your STNL Property?

There is no (little) cause for worry in response to the increasing presence of whispers of heightened regulation in regards to lease accounting procedures, sale-leasebacks, and 1031 like-kind Exchanges. There are two main regulations that have caused the most interest amongst real estate professionals, credit agencies, and investors; the change in accounting practice requiring all leases to be placed as assets and liabilities on the balance sheet of companies, and the various tax plans that propose limitations or the elimination of the 1031 Exchange in some manner. Due to the obligatory nature of a company’s lease obligations, there is widespread …

Matador SolutionsHow Will Current Legislation and Regulatory Proposals Affect Your STNL Property?

Understanding the C-Store Net Lease Sector

What is a C-store?

A convenience-store (commonly referred to as C-store) is a small retail business, often in a single tenant net lease building that stocks an array of everyday items such as groceries, snack food items, tobacco products and over-the-counter drugs, toiletries, etc.  Impulse items consumers want readily available and don’t have the time or patience to venture into a typical grocery store, and while serving the mobile community.  According to NACS, there are over 154,000 stores that account for more than $575 billion in sales.  124,374 of these stores, approximately 80%, sell fuel.…

AmyUnderstanding the C-Store Net Lease Sector

How Do You Calculate Property Damage?

What if someone damages your property; damages to a complex, home, car, boat, or other item? How much will the person owe you if liability is established? Many people mistakenly believe that the proper measure of damages is “replacement cost.” In other words, if someone rips the cushion on your couch, they should have to pay you what it would cost to buy a new couch, right? That might seem fair to you, but it isn’t the law. As a business litigation lawyer, Memphis, TN trusts in proving damages in a wide variety of cases, we understand the specific rules …

Matador SolutionsHow Do You Calculate Property Damage?

Net Lease Trends Re-affirmed at ICSC Mid-Atlantic Conference

Last week Calkain attended ICSC Mid-Atlantic Conference & Deal Making held at the Gaylord Hotel in National Harbor.  It was a very well attended show rivaling the recent New York ICSC show in December.  Both shows are a pre-cursor to RECon which will take place in May of this year at the Las Vegas Convention Center.  There seems to be an underlying acknowledgement amongst net lease brokers, developers and investors that the cap rate environment has begun to change.  Offering prices are still aggressive based on 2016 levels, especially in the primary markets with investment grade tenants.  We are seeing …

Matador SolutionsNet Lease Trends Re-affirmed at ICSC Mid-Atlantic Conference