Most net lease transactions are structured with a triple net lease, which requires little direct management because the tenant pays all taxes, insurance and maintenance costs.
Many people
think net lease transactions are fairly cut - and - dried — that the properties and procedures involved are standard and do not vary much.
The year appears to be opening with a strong outlook among lenders, suggesting that those seeking to
finance net lease transactions will have ample options for making deals happen.
W. P. Carey & Co LLC did about $ 400 million
in net lease transactions in 2001, «which is certainly one of our best years,» says Gordon Whiting, the New York company's deputy director of acquisitions.
The current economic climate has fueled an increase in
net lease transactions as firms ranging from retailers to distribution companies explore sale leasebacks.
Sturm said he looks
at net lease transaction underwriting criteria as a triangle, with location, lease and the credit of the tenant being the three sides, all weighing equally in determining investment return.
«A lot of companies where the credit had been downgraded tried to
do net lease transactions, but didn't have the leverage they would've had if they had done it a year earlier.»
Ground Lease A&D Loans, up to 100 % financing; Construction Loans, up to 95 % loan - to - cost financing; and JV Equity, up to 95 % equity financing for build - to -
suit net lease transactions.
Description: Private, NY - based firm completing over $ 10B
of net lease transactions, complex re-capitalization and structured credit - based transactions since its founding in 1989.
Since the 10 - year Treasury bill is the basis for pricing loans
in net lease transactions, as it continues to rise, so do financing costs.
U.S. Realty Advisors coordinates $ 1 billion to $ 2 billion
net lease transactions each year.
Investor appetite for
net lease transactions is on the rise.
Tenant in common deals currently represent about 1 % of
net lease transactions.
One advantage of net lease financing compared with other traditional financing sources is that
the net lease transactions provide 100 % financing.
In reality,
net lease transactions have become far more diverse than they used to be due to...