Net-leased properties are usually single-tenant commercial or industrial properties with long term leases backed by corporate credit. These leases obligate the tenant to provide for real estate taxes, insurance, and building maintenance. Commercial properties of this type are frequently leased to regional or national retailers such as Walgreens, Rite-Aid, CVS, Wal-Mart, Home Depot, The Pantry, Federal Express, AFCE, etc.
The single-tenant net-leased property market has been one of the most desirable investments for a large pool of buyers exchanging out of management intensive investments such as apartment buildings and shopping centers. Our unparalleled access to this market has enabled us to find multiple buyers for properties through maximum exposure which results in sellers realizing a higher sale price for their properties.
Buyers for this type of property vary immensely. This buyer pool includes REITs, sale and leaseback firms, Pension Funds, and finance companies. These groups typically invest larger amounts of capital, and as a result, seek higher rates of return on their investments. The yield they require is linked to the interest rate market and to the availability of discretionary funds available for investment.
The private investor market continues to be the most aggressive buyer of single tenant properties. A majority of these investors are trading out of management intensive real estate investments and moving into single tenant property which involves nothing more as an owner than opening and envelope with a check each month. We have unparalleled access to this pool of buyers and can therefore guarantee our sellers the highest possible market price achieved with each sale due to the exposure we give each property.
10-YEAR TREASURY NOTE
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