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

October 10, 2022

NNN Goodwill | Georgia | SOLD!

Brisky Net Lease represented an institutional buyer in the transaction of this NNN Goodwill in Georgia. The 46,000 SF building had 12+ years remaining on the lease with rent increases every 5 years. The property has great visibility off a major highway and is surrounded by several other national and local retailers. This location is a mission critical asset for Goodwill as it serves a dual purpose for their organization, as both a retail store as well as a career center. Goodwill’s career centers are funded by merchandise sales in Goodwill’s retail training stores, and their Job Connection-Career Center services are provided at no cost to job seekers. Part of Goodwill Southern Rivers, which has seventeen locations throughout South Carolina, Georgia, and Alabama serving an average of 17,000 job seekers annually and placing more than 6,000 in employment.

Cameron Cropsey MN #40555735 | Broker of Record: Brian Brockman, Bang Realty GA #378952

September 26, 2022

NNN Panera | Spartanburg, SC | SOLD!

Brisky Net Lease represented an institutional seller in the transaction of this recently opened Panera Bread in the terrific Spartanburg, SC community. The NNN Ground Lease has zero landlord responsibilities and healthy rent bumps every five years. The building, occupied by the top ranked brand, has a great location situated on a hard corner with a signalized intersection where it receives excellent visibility along a busy retail corridor. Panera operates as Panera Bread®, Saint Louis Bread Co or St. Louis Bread Company in 48 states, the District of Columbia and Canada. Panera Bread is part of Panera Brands, one of the largest fast casual restaurant platforms in the U.S.

Brian Brisky MN #40546562 | Broker of Record: Brian Brockman, SC #108250

September 22, 2022

Why Choose NNN Investments in the COVID-19 Aftermath

Not only was the business world put on hold not long ago, but the entire world was too, and we’re still dealing with the aftermath. The world economy hasn’t felt such a financial crisis since 2008, and many were not ready for it. However, experienced businesspeople and head-strong investors saw the raw potential of taking a new approach to business in a post-pandemic world – and it paid off.

Triple net lease assets, or NNN leases, are one of the most sought-after real estate leases that provide stability in unstable times.

This article will discuss what makes NNN investments and properties a smart move in today’s post-COVID world.

NNN Investments Mean Stability

Throughout any challenging economic times, NNN investments have proven to be resistant and fairly stable, meaning the landlord will suffer fewer negative consequences if things go south while experiencing more benefits than most other investment types.

The most substantial perk of making NNN investments is that these types of investments generate a reliable, consistent income in almost any given business climate – both in lucrative or less-than-strong economic times – while not burdening the investor with additional risks.

During the COVID-19 pandemic, NNN investments became a powerful option for investors looking to diversify during an unfavorable economic climate and wobbling market conditions.

NNN investments can deliver financial stability because they are signed for a longer period, usually from 7 to 11 years. Plus, landlords with NNN investments are more protected when it comes to the changing business climate, placing less risk on the investment.

During the COVID-19 pandemic, the overall commercial real estate pricing dropped by 10%, which was a clear enough sign for investors with a knack for business to jump in. The average cap rate for NNN leases has remained stable at 6.51 %, which was yet another box checked on many investors’ lists.

Being able to fend off the negative aftershocks of events like COVID-19, NNN investments persisted as a relatively stable option.

NNN Investments Bring Tax and Liquidity Perks

The IRS Code Section 1031 deems that triple net leases fall under the category of like-kind exchanges. Such an appointment means that investors can delay paying taxes on the capital profits for the assets. This is possible if the investors make a re-investment of the proceeds of the sales in an equivalent property that is eligible as a like-kind exchange during a specific timeframe.

With the perk of tax difference and the implications of the Section 1031 Code, exchange properties are perpetually on the rise, deeming NNN investments a highly sought-after leasing solution that yields a stable, low-risk income.

The Verdict: Are NNN Investments a Good Idea in a Post-COVID-19 Economic Climate?

Since a triple net lease means leasing a property for a longer period, investors have more control and better forecasting for long term performance. Given the sturdiness of the lease type, NNN leases have withstood the test of time, emerging as a favorable choice for investors, yielding profits with lower risk involved.

For potential investors looking to make a profit while mitigating risks, reach out to Brisky Net Lease for the best advice on investment services and browse through our extensive inventory.

September 14, 2022

Dollar Tree | Oklahoma | SOLD!

Brisky Net Lease represented the buyer in the transaction of a brand new Dollar Tree in Sulphur, OK. The newly developed building was constructed with the tenant’s most recent prototype. The Brand new 10 year lease had limited landlord responsibilities and was sold as part of a portfolio transaction.

About Dollar Tree
Dollar Tree, Inc., ranked 137 on the Fortune 500 list, and is a leading operator of discount variety stores that has served North America for more than 63 years. Operating under the brands Dollar Tree and Family Dollar, the company has more than 16,000 stores across the 48 contiguous states and five Canadian provinces, supported by a coast-to-coast logistics network and more than 200,000 associates.

https://corporate.dollartree.com/

Brian Brisky MN #40546562 | Broker of Record: Brian Brockman, Bang Realty. OK #177814

September 08, 2022

Why Fast-Food Restaurants (QSRs) Are Ideal NNN Investments

Quick-service restaurants or the fast-food industry offer their services to billions worldwide, and their popularity continues to rise. QSRs are also one of the least affected industries by the pandemic. Fifty million Americans eat at a fast-food restaurant daily, with compound annual growth projected around 4.6% by 2027, or 2.4% yearly. Established QSRs are stable and long-term net-lease investments – often with highly creditworthy tenants due to the requirements of the franchise.

Investing in a fast-food space, or a QSR, is a stable investment, often with decades of income and little to no maintenance required when paired with a triple-net lease.

A Look at the Numbers

As of 2021, there were 196,839 fast food restaurant businesses in the US. This is an increase of 1.1% from 2020, when there were 194,700.
The fast food industry in America is worth over 296 billion dollars – and still growing every year.
Though Subway is the QSR with the most locations, McDonald’s has the highest sales per unit.

Why Are Fast-Food Restaurants a Good Fit for an NNN Investment?

In recent years, fast-food establishments have become a good way of building equity – without the risk of low revenue. A triple net lease makes investing in real estate more attractive, collecting high returns and leaving behind many of the hardships of being a landlord.

Lower operational costs, long-term tenancy, low-risk investments, tax alleviations, opportunities for flexible investment, and less managerial stress are some benefits of an NNN investment. This is why they have become a sought-after form of lease for fast-food restaurants.

Because of the many advantages of a triple net lease, many fast-food commercial spaces don’t stay on the market for long.

One of the main reasons fast-food restaurants and NNN leases go so well together is the continuous rate of income, which can limit additional out of pocket expenses that comes with a lease guarantee of 10 years, in most cases.

The Verdict: Is a QSR NNN Investment the Right Choice?

For investors looking to build equity by utilizing a lease, an NNN QSR Investment could be a top choice.

Many fast-food businesses for sale won’t stay available for long since many experienced investors know how to work an NNN lease to their advantage. The fast-food industry is growing and benefitting investors with a wide range of property choices, lease options, and stable, passive income.

Schedule an appointment with Brisky Net Lease today and let our experts provide you with all your NNN lease information and possibilities. Both sellers and investors are welcome to contact our real estate experts and browse all the options for a successful NNN lease venture. Get in touch today.