Sure am. Great for pure passive income. Just have to make a thorough decission about the location as location, visibility, and underlying economics of the metro area is everything when investing in these types of assets. If you can get around that, the building will always be leased out and you will get some decent rent growth.
James Storey, CCIM
Nice - any recommendations for lenders?
Use local lenders if you can, as they understand the market better and have different financing. More likely to help you with franchisee or independent owners. Some of the national lenders will only talk to you if it's a 10 year lease with a well known corporate tenant.
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Yes, I'm solely an industrial NNN investor in DFW. Have about 100,000 sq ft all leased up. currently focused on industrial outdoor storage
Yes I love NNN. I buy the value add for cash and reposition. My clients buy stabilized NNN tenants with BBB- or better credit and long term leases.
These clients tend to be:
1. Medium to large size business owners
2. Doctors and Surgeons
3. High level corp execs
I have some other clients but these are the main 3 most often. My clients also do a COMBO approach sometimes where they buy longer term NNN to own directly 100% themselves say a 5 million or 10 million NNN STNL and then they invest in my syndicate value add deals passively 100k plus at a time. They can blend overall yield that way.
Without knowing your specific situation and goals it would be hard to comment further.
Yes my favorite asset class right now is industrial. We are heavily targeting sale leaseback deals specifically. The NNN game can be great, but you do need to do heavy DD on the leases. And be conservative on modeling vacancy and lease up costs.
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Quote from @Brock Mogensen:
Yes my favorite asset class right now is industrial. We are heavily targeting sale leaseback deals specifically. The NNN game can be great, but you do need to do heavy DD on the leases. And be conservative on modeling vacancy and lease up costs.
Where are you buying?
Quote from @Ronald Rohde:
Quote from @Brock Mogensen:
Yes my favorite asset class right now is industrial. We are heavily targeting sale leaseback deals specifically. The NNN game can be great, but you do need to do heavy DD on the leases. And be conservative on modeling vacancy and lease up costs.
Where are you buying?
Greater Milwaukee area
I am working a deal right now in Central Texas area outside of Austin with highway frontage. It has existing sq ft to be leased and room for two additional buildings.
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Quote from @Dylan Weir:
I am working a deal right now in Central Texas area outside of Austin with highway frontage. It has existing sq ft to be leased and room for two additional buildings.
For industrial outdoor storage?
Yes, we are investing specifically in NNN medical office and retail. I got tired of multifamily syndicators projecting 4% annual rent growth, little expense growth, and buying at very high pricing. It's a lot more fun to do research on specific businesses and industries than just the residential environment.
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Quote from @Neil Cronkrite:
Yes, we are investing specifically in NNN medical office and retail. I got tired of multifamily syndicators projecting 4% annual rent growth, little expense growth, and buying at very high pricing. It's a lot more fun to do research on specific businesses and industries than just the residential environment.
100% this. Same for industrial.
Quote from @Brock Mogensen:
Quote from @Ronald Rohde:
Quote from @Brock Mogensen:
Yes my favorite asset class right now is industrial. We are heavily targeting sale leaseback deals specifically. The NNN game can be great, but you do need to do heavy DD on the leases. And be conservative on modeling vacancy and lease up costs.
Where are you buying?
Greater Milwaukee area
Hi Brock - are you buying industrial outdoor storage or some other niche industrial asset class?
Quote from @Pierre Streat:
Quote from @Brock Mogensen:
Quote from @Ronald Rohde:
Quote from @Brock Mogensen:
Yes my favorite asset class right now is industrial. We are heavily targeting sale leaseback deals specifically. The NNN game can be great, but you do need to do heavy DD on the leases. And be conservative on modeling vacancy and lease up costs.
Where are you buying?
Greater Milwaukee area
Hi Brock - are you buying industrial outdoor storage or some other niche industrial asset class?
We do have some outdoor storage properties however more focused on traditional warehouse 20k-150k sq ft
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Quote from @Brock Mogensen:
Quote from @Pierre Streat:
Quote from @Brock Mogensen:
Quote from @Ronald Rohde:
Quote from @Brock Mogensen:
Yes my favorite asset class right now is industrial. We are heavily targeting sale leaseback deals specifically. The NNN game can be great, but you do need to do heavy DD on the leases. And be conservative on modeling vacancy and lease up costs.
Where are you buying?
Greater Milwaukee area
Hi Brock - are you buying industrial outdoor storage or some other niche industrial asset class?
We do have some outdoor storage properties however more focused on traditional warehouse 20k-150k sq ft
If you come across any storage deals that you pass on, send them my way!