Keep your eyes on the Cash-on-Cash; not just the Cap Rate Debate

Most Brokers (and some investors) focus narrowly on cap rates as they review acquisition candidates.  With the recent cap rate compression, many buyers are understandably frustrated by the new postures of Sellers and their listing brokers with cap rates dropping 30-50 bps depending on the originally revised price metrics.

We think the residual valuations and the actual cash-on-cash returns that can be achieved of 6-9% on a “risk-adjusted” basis deserve our attention.   With the prospect of revised capital gains treatments in 2011; and the debate over the middle class tax cuts…..now is the time to execute.

Our NNN database of over 60,000 Net lease assets affords current and accurate market intelligence for best investment decisions in this volatile marketplace.

 We specialize in investment grade assets which can be financed very effectively to achieve cash-on-cash returns without assuming unnecessary risk.