Property details

NNN Developer Seeking Equity Investors, Southeast Region

Property Description

NNN Developer Seeking Equity Investors

Update: An equity investor has committed to 150 units. As of 5/10/21, the remaining number of units is 350 sites).

Developer of 500 single-tenant medical properties is seeking additional investors who will agree to provide construction equity on a site by site basis for a large number of deliverable properties at a favorable cap rate.

All of the leases are:
20-Year brand new leases, commencing upon rent commencement
Absolute Triple Net (NNN) Leases
There are 2.00% Annual Increases in the rents.

The equity investor shall put up the costs of construction, thus allowing the developer to avoid having to obtain construction loans for each project which would slow down overall development.

As an example, with 150 sites committed to by an equity investor:

Project Cost: $3,090,000 (Equity from investor released in draws)
Build CAP: 9.71%
YR 1 NOI: $300,000
Sell CAP: 8.00%
Gross sales Price: $3,750,000
Gross Profit: $660,000
8.00% Pref on Money based on 6 months -$123,600 Paid to equity before distributions
Available for distributions between developer and equity: $536,400
Equity Investor receives 60% ($321,840)
The developer receives 40% ($214,560)
Total ROI to the equity investor is $445,440 (321,840 + 123,600)

This is an example the developer can discuss with potential equity investment partners when ready

When the equity investor is also the exit buyer and new owner of the facility at the end of the construction (rent commencement) and purchased at 7.5 % to 8.00% cap rate, then there is a lot of potential return here to resell at cap rates in the low 6's. The purchased cap rate will depend on the number of sites equity investors commit to.



Net Lease Properties For Sale



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NNN Developer Seeking Equity Investors

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Highlights

Status:
Available
Price:
$20,000,000
Rent Increases:
Annual 2.00% Increases
 

Property Information

Property Type:
Net Lease
Industry Type:
Medical - Healthcare
Units/Spaces:
1
Purchase Tenure:
Fee Simple
 

Lease information

Tenant:
NNN Developer Seeking Equity Investors
Lease Type:
NNN
Lease Expiration:
05/13/2021
Lease Remaining:
20.0 years
Landlord Responsibilities:
None - Absolute Triple Net Lease
Options:
Inquire
 

Existing financing information

N/A

The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.