WHAT ARE NNN PROPERTIES?
NNN stands for “net-net-net” and refers to the lease of these types of investments.
Owners of NNN properties have no responsibility: the tenant (instead of the landlord) is responsible for maintenance, taxes, insurance and everything to do with the property, which is stipulated in the lease. What does this mean? You own the property with a good tenant, but have no management or day to day worries. This allows investors to buy property in any location.
Typical lease length is 15 to 20 years, with any number of renewal options (we most often see 4 five year options.)
Most NNN properties are single-tenant retail. Typical examples are Walgreens, CVS, Starbucks, Burger King, Taco Bell, Firestone, Tire Kingdom, Advanced Auto, Applebee’s, IHOP, grocery stores, dollar stores, etc. Many investors prefer to buy properties from corporate, credit-tenants with financial strength behind the lease. There are NNN deals in which the guarantor of the lease are not credit-tenants, but smaller companies or even “mom & pop” franchises.
There are some variations to NNN. Some investments are NN or double net. This means that the lease stipulates something is of responsibility to the landlord (such as the roof).
The lease is a very important document in the acquisition of a NNN property! How and who guarantees the lease is a very important factor.
Legacy reviews the details and works with the buyers to find property that fits the budget, location and criteria.
Legacy and Kathy Heshelow as Founder and Broker have closed on many NNN properties for clients, including WALGREENS, ADVANCED AUTO, RITE AIDE, DENNY’S, STARBUCKS, BURGER KING, TUFFY’S AUTO, DOLLAR GENERAL, CIRCLE K, 7-11 and Many More!