Updated over 6 years ago on . Most recent reply
Evaluate a tenant - Absolute NNN lease
I am looking at a CRE with 9% CAP rate and absolute NNN lease with 8 years left ( 2% rent increase every year). The tenant is a medium size business. The lease is guaranteed by the tenant business LLC and no personal guarantee. How does one evaluate the tenant ability?
what are the risks in this kind of deal?
Purchase price: 1,200,000
Business: Medical practice
Location: NJ
Any insight helpful