triple net commercial real estate monthly income checks

8/8/2019 Triple Net Commercial Real Estate Monthly Income Checks

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What is a Triple Net Investment?

A triple net investment (Net-Net-Net or NNN) is a leaseagreement on a property where the tenant or lessee agrees topay all real estate taxes, building insurance, and maintenance

(the three 'Nets') on the property in addition to any normalfees that are expected under the agreement (rent, etc.)

In such a lease, the tenant or lessee is responsible for allcosts associated with the repair and maintenance of anycommon areas.

Ownership of the Real Estate investment receives a monthlyincome check from rental income and enjoys favorable taxbenefits.

CBC Group, Inc. www.triplenetinvestors.com


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Why Real Estate?

Investors have come to understand the critical role thatdiversification plays in creating an efficient investmentportfolio. With recent challenges in the market, a number ofinvestors are considering other investment options, such as

real estate.

Many investors now consider real estate to be the fourthasset class, in addition to stocks, bonds and cash.

Commercial real estate could be a valuable component of aninvestment portfolio.



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NNN Investment Due Diligence

TrackRecord of

theTenant

Location,

Location,Location

LeaseTerms

FinancialStrength



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What is a CAP Rate?

The Capitalization rate, orCa ate, is the ratio used toestimate the value of income producing properties.

To calculate the Cap Rate of a given property, you simplytake the Net Operating Income (NOI) of a property and divideby the purchase price or value of that property.



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Cap Rate Examples

Exam le 1:

A property has a NOI of $140,000 and a value of $1,400,000.What is the cap rate?

ANSWER: $140,000 / $1,400,000 = 10% Cap Rate


Exam le 2:

A property has a NOI of $245,000 and a Cap Rate of 9.50%.What is the value of this property?

ANSWER: $245,000 / .095 = $2,578,947


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Current Investment Opportunities

Chi otle / $1,333,333 Location: Chicagoland Area

6.75% Cap Rate

Price per Square Foot: $601.68

Current Annual Rent: $90,000 Rent per Square Foot: $40.61

Lease Term Remaining: 19 years

Lease expiration: 01/30/2029

Rent Increases: 10% every 5

years Building Size: 2,216 Square Feet



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Arb s / $1,018,000 Location: Central Illinois

8.25% Cap Rate



Lease Term Remaining: 20 Years

Lease expiration: 09/30/2030

Rent Increases: 10% every 5 years

Building Size: 2,919 Square Feet Options: (5) 5 year options



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Wal reens / $8,410,000 Location: Chicago

6.60% Cap Rate




Lease Expiration: 05/30/2084

LEED Certified

Building Size: 12,515 square feet Lot Size: .82 Acres



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Dollar General /$1,277,778

Location: Chicago Area

9.00% Cap Rate

Price per Square Foot: $136.30 Current Annual Rent: 115,000

Rent per Square Foot: $12.27


NN Lease (Landlord responsible for

roof and structure) Lease expiration: 05/31/2017

Building Size: 9,375 Square Feet



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Who We Are

CBC Group is a local multi-disciplinary firm with anintegrated approach to financial business services. A trustedresource providing solutions for your business.

An independently owned firm, we act as fiduciaries for yourbusiness.

Experienced professionals with diverse financial backgroundsthat collaborate to provide a wide range of services to ourclients.



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WhatWe Do

CommercialReal Estate

Wealth

TransferPlanning

SBA Financing

BusinessAcquisitionConsulting

BusinessInsurance

Conventional

Financing



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WorkingWith Us

Licensed Professional team with financial advisoryexperience.

In depth knowledge of the market and industry researchon quality national tenants.

A proprietary database of active lenders to leverage yourinvestment opportunities.

We only work with qualified investors.



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The 4 Step Process


1. re-Q alif An in depth review of investors profile,personal financial statement and goals for income andrisk tolerance.

2. eview Investments The investor will be providedwith a list of pre-screened properties that are matchedto their profile.

3. Q alif With Lender We will package the investor

and pre-screened property selections to qualifiedlenders that offer the best financing options.

4. Letter of Intent Investor makes offer and we beginthe negotiation process.


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Contact Us

CBC Group (847) 839.8810

Ron Filian (847) [email protected]

Tyler Ryan (847) 804.4301

[email protected]


triple net commercial real estate monthly income checks

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