April 16, 2024

Introduction to Sale-Leaseback with Brisky Net Lease

Brisky Net Lease provides full-scale buyer and seller representation on real estate and triple-net lease properties nationwide. Brisky spans the nation with offices in Minneapolis, Los Angeles and Charlotte. Founded in 2010, Brisky Net Lease is known for excellent client service, transparent communication, and determined results for large institutions, private groups, and individual investors.

Unpacking the Benefits of Sale-Leaseback

A sale-leaseback strategy allows business and property owners to sell their property and simultaneously lease it back from the buyer. This arrangement provides a multitude of strategic benefits:

Immediate Access to Capital

Businesses can gain instant capital, which can be utilized for expansion, debt reduction, or reinvestment into core operations. This influx of resources can be pivotal for growth or restructuring strategies.

Unlocking Equity

By converting an owned property into liquid assets, companies can unlock equity that was previously tied up, enhancing their financial flexibility.

Improved Cash Flow

Sale-leaseback deals can significantly improve cash flow by reducing capital tied up in real estate and redirecting it towards more profitable ventures.

Asset-Light Strategy

This approach allows businesses to maintain operational control over the property while not having it on the books, enabling a focus on core business activities without the burden of property management.

Flexibility and Stability

Sale-leaseback agreements offer flexibility in lease terms and duration, tailored to fit the strategic needs of the business. Furthermore, these arrangements provide stability and certainty for long-term planning.

Tax and Financial Benefits

Participating in a sale-leaseback can yield notable tax benefits and enhance financial ratios like Return on Assets (ROA) and Return on Equity (ROE). These improvements can make a significant impact on a company’s financial health and appeal to investors.

Risk Mitigation

In fluctuating market conditions, locking in a long-term lease can stabilize property costs and mitigate risks associated with property value fluctuations.

Strategic Considerations for Sale-Leaseback

While the benefits are compelling, it’s crucial for businesses to thoroughly assess the terms and potential implications of a sale-leaseback deal. Brisky Net Lease’s experience with high-profile transactions across retail sectors like restaurants, grocery and furniture demonstrate their ability to help businesses and property owners unlock capital, improve cash flow and focus on core operations while retaining the use of the property.

Brisky Net Lease is actively targeting sectors such as Auto & Recreation Vehicle Dealerships, Manufacturing/Industrial Properties, and Office Buildings, or those considering this financial tool it’s important to evaluate the terms and consider long term implications. If you’re interested in learning more, please reach out to the Brisky team..

April 02, 2024

Goodwill Leverages E-Commerce with GoodwillFinds: A New Era of Thrifting

Goodwill, a renowned organization for its thrift stores and community programs, has ventured into the ecommerce space with GoodwillFinds, a platform that reimagines the thrift shopping experience. This initiative marks a significant leap for Goodwill, leveraging the power of digital transformation to broaden its reach and impact.

E-Commerce Meets Social Good: The Rise of GoodwillFinds

GoodwillFinds was launched as a second hand marketplace to support Goodwill’s mission of providing job training, placement, and youth mentorship programs across the U.S. This online venture showcases a curated selection of clothing, books, home decor, and more, allowing shoppers to contribute to local community programs with their purchases. The platform’s net proceeds directly benefit the regions from which items were sourced, ensuring that every purchase supports Goodwill’s extensive social service programs.

Matthew A. Kaness, a veteran in retail and digital commerce, has been appointed as the CEO of GoodwillFinds. With his extensive experience, Kaness is set to drive the platform’s expansion and enhance Goodwill’s impact both online and in-store. Under his leadership, GoodwillFinds aims to become a leading online resale site, supported by the vast network of Goodwill’s physical stores.

A Strategic Move Towards Digital Thrifting

GoodwillFinda | A Strategic Move Towards Digital Thrifting The transition to e-commerce is not just a trend but a strategic response to the growing demand for online shopping. GoodwillFinds is designed to meet the needs of conscious consumers seeking sustainable shopping options, while also making thrifting more accessible. The platform has seen rapid growth since its inception, with plans to onboard all Goodwill members and stores.

The global secondhand market is booming, with projections indicating significant growth in online sales. GoodwillFinds is poised to capture a significant portion of this market, benefiting from the trend towards sustainable and conscious consumption.

How GoodwillFinds Works

GoodwillFinds offers an intuitive and straightforward shopping experience. Users can easily create an account, browse through various categories, and shop for new arrivals. While it focuses on direct sales, the platform maintains Goodwill’s traditional model by encouraging physical donations at its numerous storefronts.

GoodwillFinds – A New Chapter in Thrifting

GoodwillFinds - A New Chapter in Thrifting

GoodwillFinds represents a modern approach to thrift shopping within the commercial real estate market, merging Goodwill’s mission with the convenience of online retail. This initiative not only broadens Goodwill’s reach but also strengthens its community support programs. As e-commerce continues to evolve, GoodwillFinds stands out as a purpose-driven platform that offers both sustainability and social impact.

March 19, 2024

NNN Leases vs. Other Types of Commercial Leases

Commercial real estate leases can be complex, with various types determining the allocation of costs like property taxes, insurance, and maintenance between landlords and tenants. Among these, NNN leases stand out for their distinct structure and financial implications.

What is an NNN Lease?

NNN, or triple net leases, require tenants to cover property taxes, building insurance, and maintenance costs in addition to rent and utilities. This setup offers landlords a predictable income stream by transferring the responsibility for major ongoing expenses to tenants. The tenant’s financial commitment extends to any increases in property taxes and insurance premiums, as well as both routine and major maintenance tasks

Single and Double Net Lease Types: A Contrast

Single Net Leases: These are less common and involve tenants paying only the property taxes besides the rent. This model offers minimal risk transfer from landlords to tenants.
Double Net Leases: More prevalent in commercial real estate, tenants under double net leases bear the cost of property taxes and insurance, excluding major maintenance, which remains the landlord’s responsibility.

Comparing Lease Types

Commercial Lease Types The core difference between these leases lies in the degree of financial and operational responsibility placed on the tenant. While NNN leases offload most of the financial risk and management responsibilities to tenants, single and double net leases retain varying degrees of these aspects with the landlord. This distinction is crucial for both parties in terms of financial planning, risk management, and investment strategy.

Benefits and Drawbacks of NNN Leases

Advantages for Landlords: NNN leases minimize landlords’ variable expenses and management responsibilities, offering a stable and predictable profit source. Tenants benefit from potentially lower base rents and greater control over the property’s operating expenses.
Challenges for Tenants: These include the risk of unreported property issues, possible neglect of maintenance leading to higher costs, and financial burden due to property tax increases or unexpected repairs.

Making the Choice

The decision between NNN and other lease types hinges on several factors, including risk tolerance, financial objectives, and the specific needs of the property in question. For tenants, the key considerations are the expected costs of taxes, insurance, and maintenance over the lease term. Landlords, meanwhile, must balance the desire for stable income against the potential for tenant defaults and property mismanagement.

So Which Lease Type is the Right One?

Understanding the nuances of NNN leases versus single and double net lease types is vital for anyone involved in commercial real estate. By carefully considering the responsibilities, benefits, and potential drawbacks of each lease type, investors and tenants can make informed decisions that align with their strategic goals and operational capabilities.

November 07, 2023

Commercial Properties: A Smart Investment Opportunity

Investing in commercial properties presents an excellent opportunity for generating passive income and establishing long-term wealth. To optimize your returns, it’s crucial to select the right investment opportunity. One effective strategy is to explore commercial properties featuring NNN leases.

What is an NNN Lease?

NNN leases, also known as triple net leases, are a type of lease agreement in which the tenant is responsible for paying all property taxes, property insurance, and maintenance costs, in addition to a predetermined monthly base rent. This makes NNN leases a very attractive investment option for commercial real estate investors, as they offer a predictable and steady income stream with minimal risk and responsibility.

Benefits of Investing in Commercial Properties with NNN Leases

There are several reasons why commercial properties with NNN leases are a smart investment:

Stable Income Stream: NNN leases typically place the responsibility for property expenses on the tenant, including taxes, insurance, and maintenance. This results in a predictable and consistent income stream for the property owner.
Risk Mitigation: NNN leases are usually appealing to national and well-established tenants with strong credit. This minimizes the risk of tenant default and ensures reliable rental payments. NNN leases can also help protect property owners from unexpected financial burdens, such as rising property taxes or repair costs. Additionally, NNN leases often come with longer lease terms, providing greater stability and reducing turnover. This stability is advantageous for investors looking for a reliable income source over an extended period.
Tax Benefits: NNN lease investments offer the potential for tax deferral through the use of 1031 and 1033 Tax-Deferred Exchange Codes.
- Defer capital gains taxes: Investors can defer capital gains taxes on the sale of an investment property until they sell the replacement property. This can give investors more time to invest the capital gains and grow their wealth.
- Maintain investment momentum: Investors can use 1031 and 1033 exchanges to maintain their investment momentum and avoid selling one property before buying another.
- Diversify their portfolio: Investors can use 1031 and 1033 exchanges to diversify their portfolio by exchanging one type of property for another, or by exchanging a property in one location for a property in another location.

Inflation Protection: Rental income in NNN leases is typically tied to periodic rent increases, often based on the Consumer Price Index (CPI) or other inflation metrics. This can help investors maintain the purchasing power of their rental income over time.

As with any investment, it’s essential to thoroughly research potential properties, assess the terms of the NNN lease, and consider your investment objectives and risk tolerance before committing to this type of real estate investment.

Types of Commercial Properties That Typically Have NNN Leases

Triple Net Leases are commonly associated with a variety of commercial properties, particularly those that involve long-term, stable income streams. Some of the types of commercial properties that typically have NNN leases include:

Retail Properties: Both single-tenant and multi-tenant properties with a variety of retail tenants, such as grocery stores, department stores, shopping malls, and strip malls.
Office Buildings: Both Class A and Class B office buildings, as well as medical office buildings and other specialized office buildings.
Industrial Properties: Warehouses, manufacturing facilities, distribution centers, and other industrial buildings.
Quick-Service Restaurants (QSRs) and Casual Dining Restaurants: Popular restaurant chains, such as McDonald’s, Starbucks, and Chipotle.
Pharmacies: Both national pharmacy chains, such as CVS and Walgreens, as well as independent pharmacies.
Banks: Both national banks, such as Chase and Bank of America, as well as regional and community banks.
Gas Stations and Convenience Stores: Both national chains, such as ExxonMobil and 7-Eleven, as well as independent gas stations and convenience stores.
Other Commercial Properties: Other types of commercial properties that may have NNN leases include hotels, fitness centers, and self-storage facilities. NNN leases are also often used for properties that are leased to government entities, such as post offices and courthouses.

NNN leases can be an attractive option for both landlords and tenants. For landlords, NNN leases provide a predictable and consistent income stream, while minimizing the risk of financial burdens from unexpected property expenses. For tenants, NNN leases can offer lower rental rates and the flexibility to control their own property expenses.

Factors to Keep in Mind When Looking for Commercial Properties

When searching for commercial properties there are a few key factors to keep in mind:

Tenant Selection: It is important to choose tenants with a strong financial standing and a good credit rating. This will help to ensure that you receive your rent payments on time and in full.
Lease Term: Longer lease terms are more valuable, as they reduce the risk of tenant non-renewal.
Rent Bumps: Choose properties with periodic rent adjustments to ensure that your income stream keeps up with inflation.
Location: Select properties in areas with strong demographics, high growth potential and good underlying real estate. This will help to increase the value of your property over time and make it more desirable to a new tenant if the current tenant were to leave.
Guarantee: Oftentimes NNN leases include a guarantee from the tenant, but they can vary from personal to corporate so understanding the strength of the guarantee is important.

Financing NNN Lease Commercial Properties

There are a variety of financing options available for investors who are interested in purchasing commercial properties Some of the most common options include:

Traditional Commercial Mortgages: These mortgages are typically offered by banks and other financial institutions.
Hard Money Loans: Hard money loans are private loans that are typically offered at a higher interest rate than traditional commercial mortgages. However, they can be a good option for investors who need to close quickly or who have difficulty qualifying for a traditional mortgage.
Private Equity: Private equity firms can provide financing for large commercial real estate investments.
1031 Exchange: Proceeds from another property can be used for the purchase of a new investment property using a 1031 exchange, which can defer capital gains taxes.

Additional Tips for Investing in Commercial Property for Sale with NNN Leases

Work with a qualified commercial real estate broker who can help you find suitable properties and negotiate the best possible terms.
Get the property inspected by a qualified professional before you purchase it to identify any potential problems.
Purchase adequate insurance coverage to protect your investment.

June 20, 2023

NNN Leases and REITS: A Match Made in Heaven?

Investing in real estate has always been a popular choice for individuals seeking long-term wealth accumulation and diversification of investments. Two strategies that have gained significant attention in recent years are triple net leases (NNN) and Real Estate Investment Trusts (REITs). We will explore how these two investment options can work together seamlessly, offering a match made in heaven for savvy investors.

Understanding Triple Net Leases

Triple Net Leases, commonly known as NNN leases, are a type of lease agreement where tenants assume responsibility for property management expenses in addition to rent. These expenses typically include property taxes, insurance, and maintenance costs. By shifting these responsibilities to the tenant, property owners enjoy a steady income stream with reduced management obligations.

Exploring Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) are investment vehicles that pool funds from multiple investors to invest in income-generating real estate properties. REITs offer individual investors an opportunity to participate in large-scale real estate portfolios without the need for substantial upfront capital. They provide access to various property types, including commercial, residential, and industrial, allowing investors to diversify their real estate holdings easily.

The Synergy Between Triple Net Leases and REITs:

Stable Income Stream: Triple Net Leases offer a reliable and predictable income stream for investors. By including triple net lease properties within a REIT portfolio, investors can benefit from a steady flow of rental income generated by single tenant net lease properties.
Diversification of Investments: REITs provide investors with the opportunity to diversify their real estate holdings across different sectors, locations, and property types. By incorporating triple net lease properties into a REIT portfolio, investors can further diversify their investment and mitigate risk.
Professional Property Management: REITs have a dedicated team of professionals who manage property management tasks, including leasing, maintenance, and rent collection. This alleviates the burden of managing individual triple net lease properties for investors, freeing up their time and resources.
Increased Access to Investment Opportunities: Investing in triple net lease properties individually may require significant capital and specialized knowledge. By investing in REITs, investors gain access to a wider range of investment opportunities, including high-quality triple net lease properties that may have been otherwise inaccessible.

Maximizing Real Estate Investment with Triple Net Leases and REITs

Triple Net Leases and Real Estate Investment Trusts are complementary investment options that can create a harmonious and profitable investment strategy. By combining the stable income streams and reduced management obligations of triple net leases with the diversification, professional management, and increased access to investment opportunities provided by REITs, investors can enjoy the best of both worlds.

Whether you are an individual investor or a seasoned institution, considering the marriage of NNN leases and REITs can offer an attractive investment opportunity within the realm of commercial real estate.

February 17, 2023

SONIC in Raleigh, NC Sold!

Brisky Net Lease represented an institutional seller in the transaction of this Sonic in the vibrant Raleigh, NC market. The NNN Lease had zero landlord responsibilities, & 19+ years of term remaining. The location is operated by franchisee Great American Hospitality with 20 Sonic locations across North and South Carolina. This Sonic has great visibility on a high traffic corner that is located within the Plaza West Shopping Center which is anchored by grocer Harris Teeter and includes several other local and national retailers.

This Sonic is located in west Raleigh, which has excellent demographics and a growing population. The city has ranked as one of the fastest growing cities in the United States, according to Forbes.

SONIC, founded in 1953, is the largest drive-in restaurant brand in the United States with more than 3,500 restaurants in 46 states. SONIC is part of the Inspire Brands family of restaurants. The Inspire portfolio has grown to encompass nearly 32,000 restaurants across more than 70 global markets and all 50 states.

Brian Brisky MN #40546562 | Broker of Record: Brian Brockman NC #298998

November 17, 2022

Gas Stations — A Surprisingly Stable Investment

Savvy investors are always on the hunt for their next venture, and alternative property types have grown in popularity over the years. But one of the most stable alternative investment properties may surprise you: gas station-convenience stores.

Gas stations with attached convenience stores are low-risk, long-term investments that provide income flow for years to come, but there are always many factors to consider before investing in commercial real estate.

Learn about the pros and cons of gas stations as NNN investments and how you can find the perfect investment property with Brisky Net Lease!

Reasons to Consider Purchasing a Gas Station

The gas station-convenience store combination is a seemingly basic idea that significantly impacts our economy and everyday lives. They provide essential services and products that don’t depend on the advancement of technology, keeping them relevant since the invention of the automobile.

Gas stations evolved to fit modern-day customer and market demand by offering reward programs, comprehensive shopping capabilities, partnerships with grocery stores, and more. Even throughout multiple economic crises and significant world events, gas stations’ revenue has continued to grow.

Location

Regarding NNN lease investments, you should always consider a gas station/convenience store’s location before investing in the property. Choosing a site in a high-traffic area with access to drug stores or fast food businesses will bring more people to your location.

NNN Lease Terms

Depending on the tenants, gas station-convenience store NNN leases can run for up to 25 years. You’ll also worry less about the effects of inflation, as there should be set contract terms allowing you to increase the property’s rent.

Regardless of a gas station company’s preferred lease type, you’ll be paid rent, and you won’t have to worry about maintenance or other issues.

Creditworthy Tenants

You should always ensure that your gas station/convenience store tenants have good-standing credit, a low risk of defaulting on loans or payments, and be financially stable.

As an NNN lease investor, it’s important to always do your due diligence and perform a financial assessment for the potential tenant to protect yourself and your investment.

Potential Risks

No investment comes without risk, so it’s important to acknowledge the potential risks of owning a gas station. In urban or suburban markets, it can be hard to find an ideal location, as there is a lot of competition and little room for more competitors. On the other hand, locations in rural markets may not enough customers to be profitable due to the smaller population.

There is also a risk of fire or environmental contamination due to possible fuel leaks, combustive materials, and human error. However, you can always minimize the chance of something like this happening by taking preventive safety measures.

Completing regular inspections and equipment maintenance, following safety procedures, and investing in proper insurance coverage are simple things that can make a huge difference.

Choosing a Gas Station for an NNN Lease

The NNN market is moving fast, so you need to know what you want in a gas station and a convenience store before taking the plunge. To help maximize your potential profits, consider hiring a representative before negotiating lease terms, as a high ROI is the ultimate goal.

Another important factor when considering investing in a gas station-convenience store is the property’s condition and curb appeal.

A gas station that looks worn down will not generate the same income as a “nice-looking” one, and you might spend more money on updates and repairs.

Choose an NNN Lease Partner You Can Rely On

For help finding the perfect NNN investment property, get in touch with the professionals at Brisky Net Lease. Our professional team can identify the best properties in the best locations — helping you meet your financial goals.

With our extensive commercial real estate track record, you’ll walk into your next lease negotiation confidently and with an experienced team on your side.

Contact us today to learn more about our available properties and buyer representation services.

November 14, 2022

NNN Ashley Homestore | Michigan | SOLD!

Brisky Net Lease represented the seller in the transaction of this NNN Ashley Homestore in Flint, MI. The newly remodeled location is situated along a busy retail corridor and features a large parking lot and pylon sign with excellent street visibility of more than 20.5K vehicles per day. This low rent, excellent investment property is operated by a strong multi-unit franchisee and has high foot traffic, according to Placer.

Flint, Michigan is the largest city and the county seat of Genesee County. The city is located in the heart of Michigan along the Flint River, about 66 miles northwest of Detroit and 55 miles northeast of Lansing.

Ashley is a home furnishing retailer that first opened in 1997 in Anchorage, Alaska. Ashley is the number 1 furniture retailer in the U.S. and one of the world’s best-selling furniture store brands with more than 1,050 locations in over 60 countries.

Brian Brisky MN #40546562 | Broker of Record: Brian Brockman MI #6502428679

November 03, 2022

The Differences Between a Corporate NNN Lease and a Franchise Lease

Corporate NNN and franchise leases are two of the most debated types of leases in the commercial real estate world. An NNN (or triple net) lease benefits landlords since it absolves them from most risks. On the other hand, a franchisee lease is a beneficial agreement for the franchisor, but it comes with more potential risks for the landlord.

In this blog, we’ll discuss the differences between the two types of leases and what to look for when considering an investment.

Corporate NNN Lease Properties

Landlords of Corporate NNN properties often experience more security and less risk. These properties are low-maintenance for the owner since the tenant pays for any property-related expenses, like structural maintenance, repairs, insurance premiums, and real estate taxes.

Corporate NNN property owners can easily predict their cash flow from the property, proven to be more stable over a more extended period.

In many cases, the tenant expects the landlord to charge a lower base rent and have low-risk cap rates since they cover all additional expenses. Tenants also expect favorable termination clauses.

Franchisee-Owned NNN Lease Properties

For franchisee-owned properties, investors should always up their risk expectations when considering their return. There is a lot of online competition in the franchise market, so it’s wise to practice more caution.

Franchisees are becoming more particular about their operators and locations — their main priority is now a specific property’s performance and sales due to high competition levels in the market. Agreeable cap rates have also encouraged them to invest in real estate expansion after selling their other locations during the market’s peak.

Measures of Protection

Real estate is not a risk-free business, so you should always prepare for unexpected situations.

1. Do Your Research

It’s important to note that lenders are usually cautious regarding franchisee-leased properties. Investors who plan to use debt to acquire franchise net-lease properties should prepare to contribute between 50% and 60% equity.

Study the brand or franchise’s market position and value before signing anything — if you see any red flags, it’s probably best to avoid the situation altogether.

2. Experience and Finances Matter

Other things to examine closely are a franchise’s finances and length of experience. A well-established franchise or brand should have a solid financial record and investments in diverse assets.

Entering an NNN lease agreement with no collateral means taking a risk you might not want to take.

To avoid future issues, landlords and investors should request insight into a franchise’s financials. Their financial statements will show whether or not there is a need to ask for a guarantor; it’s a small step that provides great comfort.

Consult your Corporate NNN & Franchisee Lease Expert

When deciding between a corporate NNN lease or a franchisee lease, Brisky Net Lease can advise you on what is best for your situation and finances. We remain at your side throughout the process and ensure you get the most out of your money.

As experts on the NNN commercial real estate market, we help our clients achieve their financial goals — no matter what type of investment they’re considering.

Get in touch with our brokers today to learn about our various market opportunities or to learn more about our process.

October 12, 2022

NNN Kum & Go | Arkansas | SOLD!

Brisky Net Lease represented the seller in the transaction of this NNN Kum & Go convenience store in Bono, AR. The location is a strong performer with data to back it up, giving the investor an excellent opportunity to invest in the 18th largest convenience store operator, according to CStore Decisions. The large format store with a large 2.4 acre lot has excellent visibility along a major thoroughfare in town.

Kum & Go is a family-owned operation run by Kyle J. Krause, son and grandson of the original founders. The company employs over 5,000 associates in more than 400 stores across 11 states. Kum & Go is part of Krause Group, a family of businesses which also includes Solar Transport, the Des Moines Menace soccer team, and Italian wineries Vietti and Enrico Serafino, in addition to real estate and agriculture operations.

Brian Brisky MN #40546562 | Bang Realty-Arkansas Inc – License #PB00082359