triple net real estate income
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Diversify your portfolio with triple net NNN real estate income investments with creditable tenants for secure real estate and monthly income checks for your investmentsTRANSCRIPT
TRIPLE NET REAL ESTATE INCOME INVESTMENTS
Presented by Ron Filian and Tyler Ryan
CBC Group, Inc.
This document are original works and owned by the publisher and protected by copyright law. All readers of this document shall comply to the ownership rights of the author. 09/01/2010
What is a Triple Net Investment?
A triple net investment (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.)
In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common areas.
Ownership of the Real Estate investment receives a monthly income check from rental income and enjoys favorable tax benefits.
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Why Real Estate?
Investors have come to understand the critical role that diversification plays in creating an efficient investment portfolio. With recent challenges in the market, a number of investors are considering other investment options, such as real estate.
Many investors now consider real estate to be the “fourth asset class”, in addition to stocks, bonds and cash.
Commercial real estate could be a valuable component of an investment portfolio.
CBC Group, Inc. www.triplenetinvestors.com
Diversify Your Portfolio
Solid returns like a dividend payment or an annuity with total control.
No large built in management fees. Investment returns similar to REITS and other large
institutional investors. Infinite tax deferral of appreciation gains with qualified 1031
rollovers.
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Advantages of NNN Investment Properties
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What This Means To You
Ownership Receives a Net Monthly Rental Income check.
Tenant Pays the Agreed Upon Rent and Takes Care of All Other Costs Associated With the Upkeep of the Building (including RE Taxes).
CBC Group, Inc. www.triplenetinvestors.com
NNN Investment Due Diligence
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What is a CAP Rate?
The Capitalization rate, or Cap Rate, is the ratio used to estimate the value of income producing properties.
To calculate the Cap Rate of a given property, you simply take the Net Operating Income (NOI) of a property and divide by the purchase price or value of that property.
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Cap Rate Examples
Example 1: A property has a NOI of $140,000 and a value of $1,400,000.
What is the cap rate? ANSWER: $140,000 / $1,400,000 = 10% Cap Rate
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Example 2: A property has a NOI of $245,000 and a Cap Rate of 9.50%.
What is the value of this property? ANSWER: $245,000 / .095 = $2,578,947
Current Investment Opportunities Chipotle / $1,333,333 Location: Chicagoland Area 6.75% Cap Rate Price per Square Foot: $601.68 Current Annual Rent: $90,000 Rent per Square Foot: $40.61 Lease Term Remaining: 19 years Lease expiration: 01/30/2029 Rent Increases: 10% every 5
years Building Size: 2,216 Square Feet
CBC Group, Inc. www.triplenetinvestors.com
Current Investment Opportunities
Arby’s / $1,018,000 Location: Central Illinois 8.25% Cap Rate Price per Square Foot: $348.75 Current Annual Rent: $84,000 Rent per Square Foot: $28.78 Lease Term Remaining: 20 Years Lease expiration: 09/30/2030 Rent Increases: 10% every 5 years Building Size: 2,919 Square Feet Options: (5) 5 year options
CBC Group, Inc. www.triplenetinvestors.com
Current Investment Opportunities
Walgreens / $8,410,000 Location: Chicago 6.60% Cap Rate Price per Square Foot: $671.99 Current Annual Rent: $555,000 Rent per Square Foot: $44.39 Lease Term Remaining: 74 years Lease Expiration: 05/30/2084 LEED Certified Building Size: 12,515 square feet Lot Size: .82 Acres
CBC Group, Inc. www.triplenetinvestors.com
Current Investment Opportunities
Dollar General / $1,277,778
Location: Chicago Area 9.00% Cap Rate Price per Square Foot: $136.30 Current Annual Rent: 115,000 Rent per Square Foot: $12.27 Lease Term Remaining: 7 years NN Lease (Landlord responsible for
roof and structure) Lease expiration: 05/31/2017 Building Size: 9,375 Square Feet
CBC Group, Inc. www.triplenetinvestors.com
Who We Are
CBC Group is a local multi-disciplinary firm with an integrated approach to financial business services. A trusted resource providing solutions for your business.
An independently owned firm, we act as fiduciaries for your business.
Experienced professionals with diverse financial backgrounds that collaborate to provide a wide range of services to our clients.
CBC Group, Inc. www.triplenetinvestors.com
What We Do
CBC Group, Inc. www.triplenetinvestors.com
Working With Us
Licensed Professional team with financial advisory experience.
In depth knowledge of the market and industry research on quality national tenants.
A proprietary database of active lenders to leverage your investment opportunities.
We only work with qualified investors.
CBC Group, Inc. www.triplenetinvestors.com
The 4 Step Process
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1. Pre-Qualify – An in depth review of investor’s profile, personal financial statement and goals for income and risk tolerance.
2. Review Investments – The investor will be provided with a list of pre-screened properties that are matched to their profile.
3. Qualify With Lender – We will package the investor and pre-screened property selections to qualified lenders that offer the best financing options.
4. Letter of Intent – Investor makes offer and we begin the negotiation process.
Contact Us
CBC Group (847) 839.8810
Ron Filian (847) 814.8820 [email protected]
Tyler Ryan (847) 804.4301 [email protected]
CBC Group, Inc. www.triplenetinvestors.com