On this day in 1934, Lou Gehrig played in his 1,500th consecutive game.
Why Famous: American baseball first baseman who played 17 seasons in Major League Baseball for the New York Yankees (1923-1939).

A seven-time All-Star and six-time World Series champion, Gehrig won the Triple Crown in 1934 and was twice named the American League’s Most Valuable Player. Gehrig was the first MLB player to have his uniform number retired, and he was elected to the Baseball Hall of Fame in 1939.

Good Morning from Florida!
In this Week’s Digest you’ll see a handful of long term 20 year NNN leases, along with a number of drugstores as well as a collection of diversified Single Tenant Net Lease Properties.
Take a look at the 20 year remaining term properties on the top of this Week’s Property List. The highlighted properties illustrates a fundamental point when it comes to NNN investing. You’ll see the CVS is Georgia is priced at a 5.4% Cap Rate with a flat 20 year term.
Simply stated, this means that CVS will pay their Landlord 5.4% in rent for the next 20 years guaranteed by the full faith and credit of CVS corporate. 5.4% for 20 years. No more. No less.
The next highlighted properties also have a 20 year remaining term, but they all offer increases or “bumps” in their Cap Rates.
How come an IHOP or a Church’s Chicken offers investors annual increases on the same 20 year lease while CVS offers only a flat lease with no increases for the same length of the term?
CVS can offer a long term flat lease because of the strength of their creditworthiness. CVS carries an S&P rating of BBB+ and a Moody’s rating of Baa1.
Because IHOP & Church’s are not as strong a Credit, they have to offer a greater “reward” to offset their potentially greater credit risk.
Remember that in NNN investing, Pricing (ie Cap Rate) is simply determined by risk/reward. The more assumed risk requires a greater reward.
Items that determine risk are:
  • Credit worthiness of the tenant
  • Remaining Term
  • Industry
  • Location
  • Increases
The greater the actual or even the perceived risk will determine the ultimate pricing.
Does that make sense?
I have attached below for your review this week’s issue of our Weekly NNN & 1031 Property Digest.  
 
As always, if you have Questions or would like us to help you with a property search, don’t hesitate to reach out to me.
Have a great week & let me know how I can Help!
Steve
239-898-8918
carnegiewealth@earthlink.net
www.1031NNNhelp.com
 
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Remember: Our Digest is just a “snapshot” of the types of properties that were sent to us this week from various sources all across the country. If you don’t see a particular tenant that you have an interest in, just reach out to us and we’ll go find it if it’s available.
 
This Digest is simply a posting of some of the daily email blasts I receive from brokers all across the country every day. It is designed to give you a “flavor” as to where the market is currently in terms of Cap Rates vs. Tenants vs. Length of remaining Term. These properties are all available for Sale at the time the Digest was pulled together. If for some reason you see something on our list and it is no longer available, chances are really good that we can find you a very similar listing in terms of Tenant, Cap Rate, & Term in a very similar Location.
Use the Digest as a tool to get an understanding as to “what’s out there currently”. Once you know the type of property you’re interested in, we can help you find the property, submit the Letter of Intent and begin your Due Diligence process.
Let me know if I can provide any additional details or answer any questions.
Steve
239-898-8918
carnegiewealth@earthlink.net
www.1031nnnhelp.com
Visit us on Facebook at:
 

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