NNN Properties, also known as ‘Triple Net’ is one of the most popular property types in commercial real estate. NNN Properties are usually single-tenant properties leased to solid tenants (big corporations or businesses) with high credit ratings.
A Triple Net Lease (NNN) is a lease that heavily reduces landlord responsibility by the credit tenant paying taxes, insurance and maintenance. Typically performed with national credit tenants, the NNN lease is a great alternative for landlords interested in reducing their management responsibilities. Lenders also tend to label them as less-risky investments due to the credit worthiness of the tenant.
Our Triple Net deals provide investors with the opportunity to be the landlord of a variety of credit tenants ranging from nationwide drugstores to nationwide banks, such as the following: Walgreens, Wal-Mart, Burger King, IHOP, Denny’s, Rite Aid, CVS, Family Dollar, Dollar General, Taco Bell, Applebee’s, Arby’s, 7-Eleven, Inc., Sherwin Williams, and Winn-Dixie.
Many investors are attracted to Triple Net leases because of the reduced management responsibilities as well as the overall credit ratings of the tenants, as most national chains operate under the Triple Net lease structure.
The credit worthiness of the tenant combined with zero landlord responsibilities provide for minimum risk levels to the investor and to the lender. The insurance policy the landlord receives is that the Lessee is obligated to perform under the lease and pay for all expenses pertaining to operating the property. Typically, these include property taxes, insurance, and property maintenance.
