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With a large inventory of available properties, thorough research capabilities, current market expertise and vast experience, we have proven to be a valuable resource to investors seeking to invest in Corporate Backed Single Tenant Net Lease properties.
Having created extensive relationships with Net Lease property providers from across the country, we market properties in the highest level of effectiveness. We add value with our broad base of knowledge and our professional associations in the tenant, legal, financial, development and appraisal communities.
Corporate Backed Net Leased Property: Like Corporate Bonds
Attributes of Corporate Backed Net Lease property make this asset effective as a long-term investment and in the implementation of tax managed investment strategies. Providing secure, management-free cash flow with ability for high leverage, Corporate Backed Net Lease property present unique advantages, performing like corporate bonds while preserving the benefits that real property offers.*
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Unique, advantageous financing due their secure nature, net leased properties may be leveraged far more highly than traditional real estate. Based on the lease guarantee by the tenant, non-recourse financing may be arranged with a 1.0 debt coverage ratio, allowing (historically) for financing in the 85-91% loan to value range. |
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Stable income from an investment grade tenant over the length of a multi-year lease offers returns with reliability comparable to those of corporate bonds. Credit tenant leases are usually contracted for 20 years, and range from 10 to 25 years. Lengthy terms eliminate concern about tenant turnover normally associated with real estate ownership.
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Zero management responsibility with net lease property; management responsibility and operating expenses, including roof and structure, are assigned entirely to the tenant. |
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Near-zero volatility with these assets. Due to the fact that the key value determinant of credit tenant property is the long-term corporate guarantee, this asset does not experience the cycles affecting other real estate markets. Long-term, highly leverage financing removes interest rate risk and minimizes pricing volatility. Circumstances affecting traditional real estate, such as changes to surrounding property, local politics and market swings, have little impact on credit tenant property values. |
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Credit-Based Analysis. Because net lease property rental income relies on the long-term lease obligation of a corporation, it may be efficiently analyzed on the basis of the tenant’s credit, rather on the physical and geographical attributes of the property itself. Tenants have typically been rated by Standard & Poor’s and the owner’s investment returns correlate directly with the strength of the rating. Investment portfolios are efficiently adjusted for credit duration and diversification to reflect the investor’s risk appetite. |
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Returns typically exceed those of equivalent credit corporate bonds. Additionally, net lease property likely offers capital appreciation. |
*Liquidity: The long-term corporate guarantee of rental income and expense coverage, combined with the tenant-based financing, enable this asset to be traded with a greater liquidity exceptional for real property.
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