Friday, June 3, 2011

Net Lease Financing

NNN Lease Market News

Keith Wentzel on Net Lease Financing

We aked Keith K. Wentzel, Managing Director of Fantini & Gorga, his opinions regarding net lease financing and the future of the market.

What types of NNN properties are the easiest to finance? The hardest?
To a great extent, three criteria impact the feasibility of net lease financing: Credit quality, location and lease term. Assets with investment grade (or equivalent) tenants, good locations, and long term leases (20-25 years) are easiest to finance. Without one or two of these criteria, financing becomes increasingly difficult. Below investment grade tenants, tertiary markets, and short term leases are major concerns and can negatively impact the ability to obtain financing for a property..

http://www.calkain.com/

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