Value-add multifamily client closes on single tenant investment grade NNN lease property.
Need help navigating the brokerage and financing of the NNN lease market in Texas. We got you covered.
“Our client was in a time crunch to complete his 1031 and we were able to help secure a contract on an investment grade property in the highly sought-after Dallas-Ft. Worth commercial real estate market. Due to Texas having a high volume of growth in jobs and population, as well as being an income-tax free state, investments have been highly competitive in the local market. We were able to get this property secured before it officially hit the market at a market cap rate. Our client targeted a path of growth and this property and tenant fit his investment needs.”
-Chris Miller
Deal Quick Look:
Loan term co-terminus with lease term
Recourse limited to 25%
30-year amortization
Assumable loan
The Property: The subject property consists of a 7,000 SF building leased to Fresenius Kidney Care with 8 years remaining on an early extended term. Dialysis centers have become extremely popular in the net lease market due to the tenant operating at full capacity with appointments and the tenant being investment grade. Due to the strong financials of this center, the tenant opted to extend its lease term early adding an additional 7 years to the existing lease.
The Challenge: The client is an out-of-state investor that primarily invests in Texas. The Texas net lease market is highly competitive and investment grade properties are going over asking price with tightened closing timelines due to the highly competitive market and all cash offers. This investment grade asset was a prime target for a cash buyer.
The Solution: Chris Miller and Marshall Baker, Managing Directors for Anthem Advisors/Triple Net Lending, were able to secure the property prior to going to market due to their relationships in the NNN lease brokerage market. They also arranged financing upfront prior to securing the contract with a national net lease lending partner who offers attractive terms to maximize cash flow for the client. They successfully closed the transaction in 45 days while managing the brokerage and financing for the client.
