1031 Exchange into Net Lease
This was the client's second big trade out of their multifamily investments in San Francisco, and they wanted to replace the legacy real estate they were leaving behind with equally strong property fundamentals in the replacement properties they pursued.
Through its proprietary network, NLX sourced two (2) off-market net leased investments offering investment-grade credit tenancies and long-term leases in compelling markets. 7-Eleven was a build-to-suit in core downtown Austin, TX while the CVS was a recent 20-year lease extension in an affluent suburb of Orlando, FL. The clients invested the balance of 1031 funds in a high-end residential rental in Sausalito, CA.
Built in 2005, this stand-alone CVS sits on just under 2 acres lot at a heavily trafficked intersection. CVS renewed the lease for twenty (20) years which now expires in 2041. There are five (5) 5-year options to renew the lease following the end of the initial term. 100K people reside in a 5-mile radius of this CVS with an average income in the six figures.
Sale Price: $7,200,000
Cap Rate: 4.69%
Guarantor: Credit: BBB
Term Remaining: 20 years
Rent Increases: 7.5% every other option
A hyper core location offering over a ½ acre parcel in the busy 6th Street District of Downtown Austin, TX. This 7-Eleven was a build-to-suit offering a 15-year lease w/ 10% increases every five (5) years and four (4) 5-year options to renew the lease. 7-Eleven is an investment grade credit tenant with an S&P rating of AA- .
​​Sale Price: $6,825,000
Cap Rate: 4.34%
Guarantor: Credit: AA-
Term Remaining: 15 years
Rent Increases: 10% x 5-years
Client Testimonial:
​"I couldn't have had a better experience. I fully trusted my broker with his expertise, NNN/DST awareness, due diligence and timely executions. I would recommend this firm to anyone looking into these types of investments."