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.

August 18, 2022

Pros & Cons of Single-Tenant vs. Multi-Tenant Properties

For investors in commercial real estate, there are several aspects to keep in mind, such as the profit margins, the economic climate, the level of involvement of the owner, and the risk assessment, especially when buying single-tenant or multi-tenant assets.

A clear representation of the drawbacks and the perks of each type of property is essential for moving forward with a substantial purchase.

This article will cover the risks, obligations, and income revolving around investing in single-tenant or multi-tenant properties.

Single-Tenant Properties

In most cases, a single-tenant property will be occupied by an investment-grade company with a NNN lease. These are usually consumer-centered venues in the most profitable locations and are positioned to do well in changing economic climates. This reduces potential shifts in the value, making such assets lower-risk, recession-resistant, and adversity-proof businesses.

Walgreens, Taco Bell, 7-Eleven, and Dollar General are prime examples of single-tenant properties.

Single-Tenant Property Pros

Regarding the benefits of a single-tenant property, they are abundant, especially if the asset is leased under an NNN lease agreement:

Simple, straightforward investment;
Little to no owner responsibility;
Operating on absolute NNN leases;
Tenants are solely responsible for their taxes, insurance, and maintenance;
Cap rates of 5–7% with a possible IRR of 8–10%;
Possibility for building equity over the lease term;
Steady, passive income;
Lower-risk investment.

Single-Tenant Property Cons

Even though the cons related to single-tenant assets are minuscule compared to the pros, the cons are mainly shaped according to your preferences and goals.

No landlord involvement;
Limited say in the maintenance or repairs on the property;
An “all-or-nothing” risk of occupancy, especially if you own a single asset;
Less liquid than other types of investments.

Multi-Tenant Properties

As opposed to single-tenant properties, multi-tenant ones are occupied by more than one tenant.

Such multi-tenant properties are usually in the form of apartment complexes, retail centers, shopping malls, industrial warehouses, multi-family living spaces, healthcare centers, and office spaces.

Multi-Tenant Property Pros

Just like the single-tenant properties, the multi-tenant ones also come with perks, like:

Multiple sources of income;
Vacancy risk spread among multiple tenants; Tax depreciation;
Business deductions;
Increased rental income and up to 9% cap rate.

Multi-Tenant Property Cons

Unlike single-tenant properties, multi-tenant assets are somewhat riskier and demand more active management with capital investments regarding upkeep and repairs.

Income might be less consistent and reliable;
Higher maintenance costs;
Less Unpredictable expenses;
More bookkeeping and landlord involvement; Varied leases can be more complex to manage.

Which Is Better: Single-Tenant or Multi-Tenant Commercial Properties?

The bottom line with both types of commercial properties is that success is possible, and it will mostly depend on the investor’s skills to manage risks and perform substantial due diligence.

The responsibilities surrounding single-tenant properties fall onto the lessee, so there’s very little for the investor to deal with, while multi-tenant properties demand more hands-on attention.

Profit-wise, multi-tenant commercial properties deliver income from more than one source. The vacancy risk is split among multiple tenants occupying the property instead of a single-tenant property.

Contact Brisky Net Lease to Learn More About Your Options

If you’re still on the fence about choosing where to invest your money, you can’t go wrong if you contact Brisky Net Lease. Our team has years of expertise in the triple net industry and is extremely client-focused, aiming to provide the best customer experience.

We offer a full-scale buyer and seller representation as well as different services like off-market opportunities, NNN investments, and more. Get in touch today.

August 04, 2022

NNN Investments vs. Stock Market: Which Is More Profitable?

Since NNN investments are such hot topics these days, many potential investors are considering, diversifying their portfolios to include these NNN commercial investment options.

For those looking for investments that come with lower risk while also delivering a steady monthly income with fixed increases, NNN investments might be a great fit. The added perk of owning real estate that can be easily passed on to the next buyer makes NNN real estate one of the most sought-after real estate investment options.

In this article, we will cover NNN investments and stock market investments, considering several criteria to see which is the more profitable choice.

NNN Investments vs. Stock Market: Returns

When it comes to investments, the returns are the primary consideration for investors. Well-thought-of NNN investments can transform into a steady cash infusion on a monthly basis, lead to building equity, and render dependable, growing returns with little to no responsibilities for the landlord.

NNN properties have lower risk factors and can have higher return rates of return, most commonly from 7 to 10%.

On the other hand, if you’ve been making stock market investments, you’ve probably become accustomed to an average 10-year ROI of 10-12%, but with inflation in mind, those numbers could go down by 2-3% annually,

Stock Market vs. NNN Investments: Volatility

One thing is for sure – the stock market can be quite volatile. What makes investing in the stock market different from making NNN investments is that the stock market runs on whatever the economic climate is at a given time. For instance, during the height of the COVID-19 pandemic, the stock market experienced some serious downturns, which resulted in swift changes in the value of the shares.

Now, the main difference between stock market investments and NNN investments is that, unlike the stock market, NNN investments tend to be more stable, but also less liquid.

NNN investments translate to a steady cash influx, which is something that can’t be said for stock market investments. As a legal, long-term contract with a clearly outlined rent increase, NNN leases help to ensure that the asset will persevere and not lose its value in the near future.

NNN Investments vs. Stock Market Investments: Tax Opportunities

When dealing with stock market investments, depending on the income and the duration of the ownership of the asset, the annual tax rate might reach 37%. Short-term capital gains from stocks that have been owned less than a year are usually taxed as regular income. In other words, stocks yield little to no tax opportunities.

On the other hand, NNN investments can render no tax conditioning. Plus, according to IRS’s 1031 code, there are tax depreciation opportunities for NNN investments, depending on the state where the property is located.

The Verdict: Which Is the More Profitable Investment?

The benefits, tax opportunities, returns, market volatility, and stability can make NNN investments a more lucrative choice for investors.

For those still on the fence, contact Brisky Net Lease for more information on how to make a smart NNN investment. You’ll gain insights into our current listings and browse through other investment opportunities like off-market opportunities and more.

July 21, 2022

How NNN Financing Works: Explained

A triple net lease, also known as an NNN lease, has become a preferred investment option in the past few years, mainly because it favors the investor in many different ways. It’s a stable and long-term investment, which is why it’s so popular in recent years – but how does NNN financing work?

For anyone looking to invest in an NNN lease, we’ve comprised a helpful guide on everything you need to know about what it means to make an NNN lease investment and how NNN financing works.

First – What Are Types of Net Leases?

There are different types of net leases: A single net lease requires the tenant to pay only the property taxes in addition to rent. However, with a double net lease, the tenant pays rent plus the property taxes and insurance premiums. The best net lease for landlords is the triple net lease, also known as a net-net-net lease or an NNN lease, in which the tenant pays rent plus all three additional expenses.

Triple Net Financing

When investing in an NNN asset, the buyer is obligated to fulfill several requirements, like having an accredited net worth of $1 million. This excludes the option of up to $200,000 in income, or $300,000 if it’s a joint venture and the value of the initial home of the filer.

Considering that, it might feel risky for a smaller investor to use the advantages of an NNN lease. However, there are ways for small investors to make a move by reaching out to REITs (real estate investment trusts), which are fully functional cash pools for acquiring NNN lease properties.

Here are a few of the triple net financing options for small and mid investors:

REITs – A real estate investment trust (REIT) is a company that owns and finances income-producing real estate. REITs often own different types of commercial real estate and are able to offer financing for many real estate investment options, including triple net financing.

1031 Exchange – A 1031 exchange is a real estate investing tool that allows investors to swap out an investment property for another and defer capital gains/losses or capital gains tax that you otherwise would have to pay at the time of sale.

Lender Financing – Lender financing simply means an individual, group (public or private), or financial institution funds your real estate investment with the expectation that their loan will be repaid with interest or fees.

When Financing NNN Assets, Here’s What to Look Out For:

The Quality of the Tenant

This refers to the credit ratings of the tenant, usually rated by some of the biggest credit rating agencies like Moody, Fitch, or Standard & Poor. The bigger the company, sometimes you’ll see better credit ratings, which can mean financial stability. However, not all large tenants have a great credit rating.

There are several factors to consider, including years in business, debt obligations, and more. Creditworthiness can be a difficult factor to quantify, which is why working with a professional is often the best route to ensure success.

If the tenant is small, like a family-owned business, for example, their credit rating might not be as high, but they may still be a good fit for the location.

Inspect the Current Lease Agreement

The lease structure should include terms, rent increases, options to extend or terminate, obligations of both the tenant and landlord, and more. Often, when you buy an NNN property, it will already be occupied by a tenant, so paying close attention to the contract details is paramount.

Closely inspect the remaining lease terms and the lease-renewal options the tenant might have since your loan will depend on those terms of the lease. For instance, if the tenant is left with five more years until the lease expires, your loan term will also be five years; if there are ten more years to go, that’s how long your loan will be in effect.

Property & Market Conditions

There are many factors to look at pertaining specifically to the property, such as age and condition of the property, environmental factors, location, traffic counts, and surrounding developments.

In addition, local and current market factors like Covid-19, the retail climate, interest rates, consumer confidence, economic climate, and more are all additional considerations to be fully acquainted with.

Is NNN Financing for You?

Most likely – yes! From tax exemptions to collecting a steady, passive income, investing in an NNN property is definitely worth it. The bigger the buyer’s net worth, the better the chances of a smooth acquisition.

From leasing an NNN property to acquiring one, Brisky Net Lease offers several services according to your criteria. Additionally, you’ll get exclusive insight into the vast gallery of NNN assets for sale.

If you’ve been exploring options to invest in an NNN property but don’t know how to go about it, contact us to schedule an appointment and go through all the details surrounding NNN leases.

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