I am running through this asset class and I see attractiveness from the passiveness of this investment class in CRE.
Example: Purchase Price = $2,000,000, Cap Rate = 6%, 15-year lease with 2 renewal options for 5 years each at 10% NOI increase, Credit Rated Tenant - DG
Can anyone help me understand how this investment will look from a numbers standpoint at the 15-year mark, 20-year mark? I know there are variables that I have not included which doesn't fully help so please but a high-level overview of this should be viable without the other variables.
Two guys for you to look up, @Cherif Medawar and Neil Wahlgren. Cherif has done a lot in the triple net space and has a great way of explaining how money is made there. Neil is sale-leaseback investor and has addressed how these types of deals make money. His deals tend to be more absolute net, but many of the principles carry over.