July 13, 2022

NNN Tupelo, MS | ALDI | Sold!

Brisky Net Lease represented an institutional seller in the transaction of this lower rent/excellent price point Aldi in Tupelo, MS. The ground Lease structure has over fifteen years remaining and zero landlord responsibilities. The sale offered the buyer the opportunity to invest in a grocery store chain that is on track to be the third largest in the United States behind Kroger and Walmart. The newly remodeled store is located on a hard corner with a signalized intersection where it receives excellent visibility along a busy retail corridor.

Founded by the Albrecht family, the first ALDI store opened in 1961 in Germany, making ALDI the first discounter in the world. Headquartered in Batavia, Illinois, ALDI now has more than 2,100 stores across 38 states, employs over 25,000 people and has been steadily growing since opening its first US store in Iowa in 1976.

Broker of Record: Bang Realty-Mississippi, Inc | Brian Brockman MS #21542

June 29, 2022

Chick-fil-A | Sold

Brisky Net Lease represented an institutional seller in the transaction of this established Chick-fil-A location in Carrollton, GA. This NNN Ground Lease has zero landlord responsibilities, low rent and significant rent growth. The property had an attractive location positioned along a busy retail corridor, with easy access and high traffic counts and visibility. Carrollton is a city in the northwest region of Georgia, about an hour west of Atlanta near the Alabama state line. It is the county seat of Carroll County, which is included in the Atlanta Metropolitan Area

Atlanta-based Chick-fil-A, Inc. is a family owned and privately held restaurant company founded in 1967 by S. Truett Cathy. Devoted to serving the local communities in which its franchised restaurants operate, and known for its original chicken sandwich, Chick-fil-A serves freshly prepared food in more than 2,800 restaurants in 47 states, Washington, D.C., and Canada.

Brian Brisky MN #40546562 Broker of Record: Bang Realty-Georgia, Inc | Brian Brockman GA #378952

June 23, 2022

How Net-Leased Commercial Real Estate Is Making Waves

Net-lease commercial real estate has been rising in recent years, and 2021 was no exception. The total transaction volume for net-lease assets reached $79.3 billion, up 39% from the previous years. This unprecedented demand is being driven by investors looking for stable and predictable income streams.

Of course, with any investment, there are risks to consider. But for savvy investors, the potential rewards of investing in net-lease commercial real estate outweigh the risks. Here’s a closer look at this growing trend and why you should consider adding net-lease commercial real estate to your portfolio.

What This Means for Investors

The high demand for net-leased assets and a scarcity of supply are driving up prices and lowering capitalization rates. With that being said, it’s still a good time to invest in real estate, here are some reasons why:

Higher Primary Yields

Net lease investments offer primary yields that are significantly higher than other types of assets, such as bonds. For example, the average yield on a 10-year Treasury bond is 2.61%. In contrast, the average yield on a net-lease property is between 5% and 8%. This higher yield is because net-lease properties are leased to tenants long-term, typically 10 to 20 years.

Steady Income with Relatively Low-Risk

Net-lease commercial real estate typically features long-term leases with creditworthy tenants. This means that you can count on a steady stream of rental income for the life of the lease. And because the tenant is responsible for property taxes, insurance, and maintenance in a triple-net lease, you don’t have to worry about unexpected expenses.

Resilience to Industry Volatility

Another benefit of investing in net-lease commercial real estate is that it’s relatively immune to industry volatility. For example, if you own a property leased to a grocery store, you don’t have to worry about the ebb and flow of the stock market. People will always need to eat, so your tenant will likely stay put even during tough economic times.

Versatility to Supplement All Types of Investor Portfolio

Net lease commercial real estate also has the potential to complement any type of investor portfolio. For instance, if you’re looking for a hedge against inflation, net lease commercial real estate can provide it through price appreciation and rental income increases.

Or, if you’re looking for a way to diversify your portfolio, net lease commercial real estate can help with that, too. By adding real estate to your portfolio, you’re diversifying away from stocks and bonds and into a physical asset that can offer stable income and potential price appreciation.

For these reasons and others, net lease commercial real estate makes a good investment. This is because the market is expected to continue to grow through 2022 and beyond, and the potential rewards seem to outweigh the risks. However, as with any investment, it is essential to do your research and consult with experts like Brisky Net Lease for advice before making any decisions.

Contact Brisky Net Lease

Brisky Net Lease is a commercial real estate brokerage firm specializing in net lease properties. We work with investors of all types, from first-time buyers to real estate investment trusts (REIT). If you’re looking to invest in triple-net lease spaces, we can help you find the right property to fit your needs.

Contact us today to learn more.

June 09, 2022

Do Triple Net Lease Investors Qualify for Business Income Deductions?

If you’re a triple net lease investor, you may be wondering if you qualify for business income deductions. Many triple net lease investors have this question since they want to take advantage of the incentive if they are eligible.

But before going into the details, let’s take a look at a triple net lease investor:

A triple net lease investor is an individual or company that invests in properties with a triple net lease agreement (NNN lease). This lease agreement requires the tenant to pay for property-related expenses, including property taxes, insurance, and maintenance.

Now, let’s see who is covered by Qualified Business Income (QBI) deductions.

QBI Deductions: Who Is Covered?

The Qualified Business Income deduction or QBI deduction is a new tax break created as part of the Tax Cuts and Jobs Act. The deduction allows businesses to reduce their qualified business income by 20 percent. The QBI deduction is available to individuals, estates, and trusts.

The QBI deduction is available for qualified business income from:

Sole proprietorships
Partnerships (including LLCs that are taxed as partnerships)
S-corporations
Real estate investment trusts (REITs)
Qualified cooperative organizations

To be eligible for the deduction, you must have taxable income that is less than $157,500 if you are single or $315,000 if you are married filing jointly. The deduction may be limited if your taxable income is above these thresholds.

The QBI deduction is available for tax years 2018 through 2025. After 2025, the deduction will revert to its pre-tax cut levels unless Congress takes action to extend it.

Triple Net Lease Investors Do Not Qualify as a Trade or Business

The IRS has ruled that triple net lease investments are not considered a trade or business because the investor only rents property to a tenant and does not provide any tenant services.

The IRS has also ruled that triple net lease investors are not eligible for the passive activity loss rules because they are not actively engaged in managing the property.

However, There Are Other Triple Net Lease Tax Advantages

Since triple net lease investors do not qualify for QBI deductions, they can consider other tax incentives. One such way is by investing in places where there is no state income tax.

Triple net lease investors could save money if they invest in the following states:

Alaska
Florida
Nevada
South Dakota
Tennessee
Texas
Washington
Wyoming

Aside from income tax, these states also do not collect state capital gains tax. Triple net lease investors can also consider New Hampshire since it plans to phase out investment interest and income taxes in 2023.

Deferred Capital Gains Taxes

The most common deduction that triple net lease investors can claim is a deferred capital gains tax. This deduction allows investors to defer paying taxes on any capital gains generated by the sale of a property. To qualify for this deduction, the investor must reinvest the proceeds from the sale into another similar property. The reinvestment must be made within a certain time frame, and the investor must also hold the new property for a certain period of time.

Cost Segregation Depreciation

Cost segregation depreciation is a way for business owners to get extra tax deductions on their income taxes. It works by breaking down the cost of the property into different categories, such as land, building, and equipment. Each category can then be depreciated over a different number of years, resulting in a larger tax deduction. This is especially beneficial for businesses with a lot of equipment since they can depreciate the equipment much faster than the land or building.

The Bottom Line – Triple Net Lease Investors Do Not Qualify for QBI Deductions

Triple net lease investors do not qualify as a business to take advantage of QBI deductions – but they have other options to allow them to save money on the taxes they have to pay.

If you want to know more about these options, contact Brisky Net Lease today to help you!

May 17, 2022

NNN Daycare | Sold!

Brisky Net Lease represented the seller in the sale of a single tenant Yellow Brick Road Daycare in Eden Prairie, MN. The established location features a triple net lease lease with over eleven years remaining and zero landlord responsibilities.

Located in one of the best submarkets of the Twin Cities, the large underlying site has a solid corner location with excellent visibility and is close to Eden Prairie Center, a major retail and entertainment hub. The growing childcare chain has been providing quality early education for over twelve years in the Twin Cities market with four metro locations and has recently added two new locations in the Omaha market.

Brian Brisky MN #40546562

May 12, 2022

NNN Starbucks | Sold!

Brisky Net Lease is pleased to have represented a buyer in the purchase of a NNN Starbucks in Wisconsin. The corporate guaranteed property is situated on a signalized hard corner along a main retail corridor where it receives excellent visibility. The high performing location is well above average for site visits for Starbucks locations in Wisconsin, according to Placer.

Cameron Cropsey WI #94935-94

April 12, 2022

SOLD! NNN Red Lobster

Brisky Net lease represented the buyer in the sale of a Red Lobster located in the Twin Cities MSA. The absolute NNN lease had over 20 years remaining with the solid restaurant tenant. The excellently located property has easy access to 3 major highways in a city that has great demographics and a consistently growing population.

Red Lobster is the world’s largest and most-loved seafood restaurant company, headquartered in Orlando, Fla. With a proud heritage and an even brighter future, Red Lobster is focused on serving the highest quality, freshly prepared seafood that is traceable, sustainable and responsibly-sourced. In 2021, Red Lobster was named to Forbes magazine’s list of America’s Best Large Employers and Newsweek magazine’s list of America’s Best Loyalty Programs. What was once a single, family-owned restaurant in Lakeland, Florida, now has over 700 locations around the world.

*From Redlobster.com

Cameron Cropsey MN #40555735

April 04, 2022

SOLD! Brand New Dollar General

Brisky Net Lease is pleased to announce the sale of a brand new NNN Dollar General that just opened this spring in Wisconsin Rapids, WI. Wisconsin Rapids is centrally located along the beautiful Wisconsin River in the heart of cranberry county. The city has been named a top small town to raise a family and is recognized for its low cost of living.

Dollar General is the nation’s largest small-box discount retailer! Dollar General operates 17,915 stores in 46 states, 17 traditional distribution centers and 8 DG Fresh cold storage facilities as of October 29, 2021. In fiscal year 2020, Dollar General had $33.7 billion in sales, opened 1,000 new stores, remodeled 1,670 stores and relocated 110 stores. Dollar General has had 31 consecutive years of same-store sales growth through FY 2020.

Brian Brisky WI #56114

March 10, 2022

SOLD! NNN Dollar General

Brisky Net Lease helped broker the sale of this brand new NNN Dollar General in Bay City, Wisconsin. This Dollar General fills a void in this small community which lacks a full service grocery store. Bay City, located less than 10 miles from Red Wing, MN, has a population of about 500 but has a large 5 mile population of over 10,000.

Brian Brisky WI #56114

February 10, 2022

SOLD! Festival Foods

Brisky Net Lease is pleased to have represented an institutional buyer in the purchase of a NNN Festival foods in Wisconsin.

Brisky Net Lease aims to be your comprehensive partner for NNN investment real estate. We have extensive experience in investment properties for sale, retail properties for sale, and navigating the national investment landscape successfully.

About Festival Foods

More than just a grocery store. As an employee and family-owned company, we pride ourselves on providing high quality products and offering our guests an exceptional shopping experience. From positively impacting communities to ensuring quality products to providing an exceptional experience, we’ve fueled a culture of excellence for more than 70 years.

*From FestFoods.com

Brian Brisky WI #56114