Syndicating NNN properties

[Michael Behrens]

I own and invest in NNN. Recently I've been approached by several people interested in acquiring NNN properties as capital partners because of their stable cash flow, predictable returns and the confidence of longer term leases by credit tenants.

Does anyone out there successfully syndicate NNN properties? How to get started? If so, is this a viable and profitable way to syndicate? Where does the syndicator "add value" in this scenario? Thank you for your feedback!

[Joel Owens]

The big NNN funds that buy stable assets tend to do portfolio averaging. Say they pay a 7% pref. How they usually do that is have some 3 million properties at 6 caps with new leases and then some 30 million dollar stuff at 8 plus cap rates.

If they were buying all small stuff that is long term lease and stabilized then now way they could offer that.

For the smaller syndicator retail value add deals is generally they way to go.