NNN Leased McDonald's

NNN Lease Market News

Calkain Companies Featured Listing (NNN) Lease McDonald's

Absolute NNN 20 Year Corporate McDonald's with 10% rent bumps every 5 years Zero Landlord Obligations. McDonald's Corporation operates over 31,300 restaurants in 118 countries. McDonald’s (S&P: A, NYSE: MCD) Triple Net (NNN) originally meant net of taxes, net of insurance, and net of maintenance. According to the terms of an absolute NNN, the tenant is responsible for all property operating expenses, including insurance, taxes and internal and external maintenance.

NNN properties offer the benefit of little or no management responsibilities, as the tenant pays for most, if not all, of the expenses depending on the terms of the lease. The investor receives the rent with little to no other involvement. With an absolute triple net lease, the tenant is responsible for all expenses, making this a true passive investment for the owner.

LEASE SUMMARY

Total NOI $136,000*

Tenants McDonald's & Marathon Petroleum

Guarantee Corporate

Lease Commencement March 2008

MCDONALD'S

NOI $65,000*

Rentable Square Feet 2,726 +/- sf

Lease Type NNN

Lease Term 10 years

Increases Percentage Rent & 10% increase in base rent beginning with the 2nd renewal option

Options Automatic Six (6), five (5) year

 Includes percentage rent MARATHON PETROLEUM

NOI $71,000

Rentable Square Feet 3,040 +/- sf

Lease Type NNN

Lease Term 15 years

Increases 10% every 5 years

Options Automatic Five (5), five (5) year

 HIGHLIGHTS

•Rent-to-Sales ratio of approximately 3%, growing sales year over year

•Corporate Backed Leases by McDonald's and Harper Oil

•15-year Accelerated Depreciation

•Only McDonald's within 20 mile radius Multiple Locations Nationwide

http://www.calkain.com/

Triple Net (NNN) Leased Starbucks

NNN Lease Market News

Calkain Companies’, a national real estate investment brokerage firm, recently completed the sale of a 33,800 SF investment property ground leased to Starbucks on a long-term, NNN basis. The purchaser was a private investor seeking a passive, incoming-producing asset leased to a national tenant. The property is located at Edens & Avant’s Riverton Commons Super Wal-Mart and Lowes anchored center in Front Royal, Virginia. Other Ground lease parcels are also available for sale.

Calkain’s Rick Fernandez and Rich Murphy brokered the transaction on both the sell and buy side respectively. Calkain worked with the buyer to develop criteria for acquiring a portfolio of properties that would fit the client’s investment strategy. “Knowing the buyer’s criteria, it was a matter of finding an attractive property at the right price point,” says Murphy. “This property just happened to be a Calkain listing,” adds Murphy.  “This Starbucks deal represents the type of stable asset that investors are focused on purchasing in the current environment.” Fernandez said.  

Single Tenant NNN properties are typically free standing buildings that are leased to a single business tenant for a long term, often 10-25 years. Triple Net (NNN) originally meant net of taxes, net of insurance, and net of maintenance. According to the terms of an absolute NNN, the tenant is responsible for all property operating expenses, including insurance, taxes and internal and external maintenance.

NNN properties offer the benefit of little or no management responsibilities, as the tenant pays for most, if not all, of the expenses depending on the terms of the lease. The investor receives the rent with little to no other involvement. With an absolute triple net lease, the tenant is responsible for all expenses, making this a true passive investment for the owner.

Starbucks is the premier roaster and retailer of specialty coffee in the world, operating in more than 50 countries. Starbucks Corporation was formed in 1985 and its common stock trades on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SBUX.”

The transaction closed within the last thirty days and is recorded in the public record.

Calkain is a full service real estate brokerage firm with a national scope focusing on single and multi-tenant retail, industrial, hotel and office net-leased transactions.  Calkain has offices in Reston, VA (Washington, DC), Florida, Maryland and Delaware.  Additional information about the firm and its listings may be found at http://www.calkain.com/

The Largest Net Leased Retail Transaction In The Washington, DC Area In The Last Several Years

NNN Lease Market News

Walgreens & PNC Bank leases Made this Net Leased Retail Transaction More Unique in Today’s Market

Reston, VA, – Calkain Companies, a national real estate investment brokerage firm, represented both seller and buyer on a cobranded Walgreens (NYSE:WAG) and PNC Bank (NYSE:PNC) ground lease in Fairfax, VA. The transaction sold for $13,800,000 which equated to the largest net leased retail transaction in the Washington, DC area in the last several years.  The sale price represented a 5.90% capitalization rate which is indicative of the reach that Calkain Companies has to match investors with sound real estate investments.
Jeff Bogart, Tax Strategy Specialist of Calkain Companies, represented both the buyer and seller.  “Ground leases are not as prevalent as fee simple properties and as such, demand is high for Walgreens (Standard and Poors: A+) and PNC Bank (Standard and Poors: A+) quality of credit coupled with the added security of ground lease ownership. Both leases had rental increases every 5 years, which, in comparison to typical Walgreens’ leases, made this property more unique in today’s market. The intrinsic value of the real estate also helped drive the cap rate to 2007 levels as it is located in Fairfax County, Virginia - which has a top 10 national ranking for median household income, at well over $110,000. The buyer, an undisclosed, due to confidentiality agreements, local investor considered himself fortunate to secure such a quality asset.”

Realty Income to Acquire up to $544 Million of Net Lease Propertiesn 11 Different industries

NNN Lease Market News

Realty Income to Acquire up to $544 Million of Net Lease Properties

The properties to be acquired are located in 17 different states and consist of approximately 3.8 million square feet of leasable space. The majority of the lease revenue from these single-tenant properties is generated from investment grade tenants, or their operating subsidiaries, in 11 different industries. The single-tenant distribution properties representing 34% of the lease revenue include; Aviall Services, Caterpillar, FedEx Corporation, and International Paper. The single-tenant retail properties representing 33% of the lease revenue include; AMC Theaters, Cinemark Theaters, Regal Cinemas, and Walgreens. The single-tenant office properties representing 25% of the lease revenue include; Fiserv, Inc., Novus International, Solae and T-Mobile USA. The single-tenant manufacturing properties representing 8% of the lease revenue include; Coca-Cola and MeadWestvaco Corporation. The average remaining lease term of the properties is over 11 years, which is consistent with the average remaining lease term of Realty Income’s existing portfolio of approximately 2,500 net leased properties.

Many investors are looking for a safe place to put their money with the wild fluctuations in the financial market. Stable, predictable investment vehicles are increasingly hard to find, but smart investors do have choices. One of the better choices is to invest in single-tenant, net-leased properties, which many investors also call a corporate bond combined with real estate investments that still make sense today.
Net leased properties are appealing to a wide variety of buyers, from high net worth individuals to partnerships to large institutional investors like real estate investment trusts, life insurance companies and pension funds. Net leased properties also are very attractive to investors who need to do 1031 tax-deferred exchanges, or 1031 exchanges for short.

http://www.calkain.com/

NNN Lease Investment Portfolio for Sale

NNN Lease News

Reston, VA - Calkain Companies, a national NNN net lease investment brokerage company, has been name the exclusive advisor for the sale of four NNN net leased Arby’s. This four Net Lease Properties are located in the diverse Mid-Atlantic region. Here are the highlights of These Four NNN net leased investment properties,

Highlights

•Strong Locations on outparcels to Super Wal-Mart or Home Depot Anchored Centers

•Landlord Retains Possession of All Trade Fixtures and in-store equipment

•Percentage Rent in addition to base rent

•Personal Guarantee for each location

Arby’s - Wake Forest, NC 

Square Footage: 3,119

Property Type: Restaurant, Retail

Lease Term 15 yrs.

Lease Structure: NNN

NOI: $159,178

Price: $2,165,692

Arby’s - South Hill, VA    

Square Footage: 3,119

Property Type: Restaurant, Retail

Lease Term 15 yrs.

Lease Structure: NNN

NOI: $144,144

Price: $1,961,147

Arby’s - Rocky Mount, NC    

Square Footage: 3,119

Property Type: Restaurant, Retail

Lease Term 15 yrs.

Lease Structure: NNN

NOI: $124,412

Price: $1,692,681

Arby’s - Roanoke Rapids, NC

Square Footage: 3,119

Property Type: Restaurant, Retail

Lease Term 15 yrs.

Lease Structure: NNN

NOI: $122,316

Cap Rate: 7.35%

Price: $1,664,159

For More information Contact:

Rick Fernandez

Managing Director

(703) 787-4714

rfernandez@calkain.com

NNN NET LEASED MEDICAL OFFICE BUILDINGS

NNN Lease Market News

Tampa, FL – Calkain Companies, a national real estate investment brokerage firm, has procured the sale of two separate net leased medical office buildings.  One asset was located in Austin, Texas while the second property was situated in Anderson, South Carolina.  Both facilities were operated under the brand name Affordable Dentures by Affordable Care Industries, a private company with over 150 locations nationwide. Patrick Nutt, Senior Associate of Calkain Realty Advisors, the private market division of Calkain Companies, represented the seller in both transactions. 
The Texas property, located at 8136 Tuscany Way, was built for the tenant in 2008.  The purchaser, a locally based Limited Partnership, made the $1,400,000 acquisition through a limited partnership as part of a IRC section 1031 exchange.  The Seller, One Acre LLC, was the original owner of the property that constructed the 2,972 square foot build to suit facility for Affordable Care Industries.  The purchaser was attracted to the local nature of the facility as well as the long term lease in place.
The South Carolina transaction, sold by a private investor, was purchased by Rutledge Realty Inc, a family owned investment company based in Anderson.  The dental facility was located at 3004 North Main Street and was situated on just over 0.5 acres of land.  As with the Austin property, this site had a long term lease in place with scheduled rent increases throughout the initial 12 year term.
Nutt commented, "Although Affordable Care is a private company, once we were able to open a dialogue with the tenant, both purchasers were very more than comfortable with the financial strength of the company".  Investors generally put an emphasis on the lease terms, credit of the tenant, and underlying real estate, Nutt continued, "beyond the typical underwriting, both purchasers were attracted to the stable nature of the tenant’s medically related business, as well as the specialty build out required for this tenant which shows further commitment to the site from Affordable Care". 
Calkain is a full service real estate brokerage firm with a national scope focusing on single and multi tenant retail, industrial, hotel and office net-leased transactions.  Calkain has offices in Reston, VA (Washington, DC), Florida, Maryland and Delaware.  Additional information about the firm and its listings may be found at http://www.calkain.com/