Triple Net Lease Property of the week 8.22.17

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This week’s selection is one of the few Triple Net Lease properties I have seen for under $1,000,000, that appears to be a good value in most respects.

Pros:

Price                  $590,000
Use:                    Coffee House
Location:         Between high school campus and outlet mall
Age:                    10 years
Increases        The lease calls for a 10% increase every 5 years.

Cons:

Lease Term     5 years with 3 5-year options
Cost / Sq Ft     $1,365

Summary: The price point represents a good entry level for these properties, and yet it is a relatively new building which should not require expensive renovations or repairs in the near future. It is used as a coffee house similar to Starbucks only a smaller franchisor, Located within an active shopping corridor.
I prefer to see 15 or 20-year leases at the outset, but this property appears to be well located, and is a franchised brand, so the prospects seem good that the franchisee will prosper and continue to occupy the property through the lease extensions.

 

John Skinner
BRE 00370864
831 359 8624
jks@cruzio.com

Sherman and Boone Realtors, Inc.
1260 41st Ave, Ste O
Capitola, CA 95010
831.464.5050
Fax-831.462.1618
BRE#00529069
http://johnskinnerproperties.com
https://www.facebook.com/johnskinnerrealestate/

Triple Net Properties For Sale

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