Strategy:
After we had completed our analysis, we agreed that an exchange into a single-tenant, tripe net type investment would benefit the sellers’ goals of required income and less management needs.
Execution:
We approached the market at an aggressive price that saw the value of the real estate due to its potential income (as the area demanded high rents).
Outcome:
How did we do? Here are the results:
- After closing escrow, we helped the client exchange into two separate triple net offerings which increased their net income by nearly 30%.
- We helped the client exchange into a Wendy’s in Texas and a Burger King in Los Angeles, both with new 20-year triple net leases with annualized increases.
- Both “upleg” investments had improved the quality of life for our client, by reducing the stress and time required for management on multi units.