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.
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).
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.