Owner sells multifamily to start collecting passive income from a net lease asset.
Need help navigating the brokerage and financing of the net lease market in Texas. We got you covered.
“Our client was a first-time net lease investor after selling a multifamily property. We helped the investor find the deal and negotiated on their behalf to secure a contract on an investment grade property in the highly sought-after Dallas-Ft. Worth commercial real estate market. The multifamily asset was nearing the end of its useful life and was becoming very capital intensive to maintain. We were able to negotiate a favorable structure and amortization with a lender to allow them to start collecting passive net lease income.”
-Chris Miller
The Property: The newly constructed (2021) property consists of a 22,433 SF building with 3.99 acres of land. It is leased to The Tractor Supply Company and has 14+ years remaining on the initial lease term. Tractor Supply corporate has a strong balance sheet and an investment grade rating of BBB.
The Challenge: The client was an out-of-state, first-time net lease investor. The negative cash flow from their relinquished property made the transaction challenging but ultimately we were able to secure a market rate lender to fund the deal.
The Solution: Chris Miller and Marshall Baker, Managing Directors for Anthem Advisors/Triple Net Lending, were able to arrange the financing with a lender that understood the strength of the tenancy and location. Given the investor was out of state, we recommended reputable team players that were instrumental in successfully executing this transaction including the 1031 accommodator, local counsel, lender and third parties. The lending institution understood the borrower’s financial position as we detailed the situation in the initial conversations. The process was smooth and the lender obtained loan approval during the due diligence phase of the transaction.
Deal Quick Look:
65% LTV loan approval
30-year amortization
Flexible prepayment
