Sales Price: $7,884,000
Cap Rate: 4.10%
Guarantor: Investment Grade Credit ("A")
Term Remaining: 15 years
Rate Increases: 10% every 5 years
After every transaction we analyze our process, note the areas of improvement, and implement changes to ensure we never make the same mistake twice. With enough repetition, you get to a point where your process no longer allows for error. This saves the client time and money.
Case in point—after months of attempting to source his own trade properties from the sale of his fifty-six (56) unit apartment building in Sunnyvale, client engaged NLX two (2) weeks into his 45-day ID period.
Having to replace upwards of $24M in total debt and equity, the tax deferral was significant, so failing to complete his 1031 was not an option.
By the time client needed to submit his ID form to his accommodator—three (3) weeks after our initial meeting—we had already sourced four (4) off-market net lease investments, three (3) of which were under contract, all four (4) with signed lender term sheets and rate locks at sub-5% interest rates.
From start to finish, the longest escrow took 65 days (new construction), and the shortest took 52 days. Client completed his 1031 exchange requirements with high quality net lease properties that allow for a passive income stream and greater diversification.
- It took several years for 7-Eleven and the developer to overcome all the challenges inherent with building in CA before this project was finally completed in Fall of 2022. The property is situated on a hard corner off the I-880 freeway near the Target shopping center in Union City, CA. The lease is guaranteed for fifteen (15) years with scheduled rent increases and no landlord responsibilities. 7-Eleven is an investment grade credit tenant (S&P “A”).