Like everything else in the current global economy, investing in real estate is not quite as straightforward as it used to be. Urban multifamily buildings, once almost exclusively the domain of smaller, family-owned concerns, are increasingly sought by larger – even corporate – investors. The stresses of dealing with unpredictable operating expenses and even less predictable tenants can be extremely difficult for investors who are not backed by large organizations and must perform most management functions themselves.
For these reasons and many others, a growing number of real estate investors are choosing to reallocate their investments from apartment buildings to a type of single tenant commercial property known as Triple Net Lease (NNN) property. NNN properties typically have several attractive features, including:
- Minimal operating expenses for the owner: tenant pays them as part of the NNN lease arrangement.
- Reduced management responsibilities: tenant is obligated to self-manage the property.
- More stable and predictable income streams: leases are generally long-term and involve single tenants.
- Geographic diversity: NNN properties are available throughout the United States in a wide range of commercially-desirable locations.
Additionally, with careful planning, investors may be able to defer capital gains on the sale of their original investment property if they follow the guidelines for reinvesting the proceeds under IRC §1031.
The real estate attorneys at Holm and O’Hara LLP have assisted numerous investors in transferring hundreds of millions of dollars in capital investments from multifamily dwellings to NNN properties. Our helpful overview of NNN investments includes:
- Why NNN properties might be a good choice for some investors
- Factors in evaluating NNN investment opportunities
- Composite case studies based on actual client experiences
- Snapshot of advantages of investing in NNN properties
- Glossary of specialized terms used by real estate agents, financial advisors and attorneys
After you have reviewed Triple Net (NNN) Leased Properties: Nationwide Investment Opportunities, contact us to arrange for a free consultation with a Holm & O’Hara LLP partner to review your current circumstances, as well as your long and short term objectives. If you decide that reallocating your investment is the right choice for you – or if you want to begin investing in NNN properties – we coordinate with your commercial real estate broker, accountant and financing team. We can also connect you with our nationwide professional network.
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