Triple Net Lease - NNN

With the recent growth of 1031 Exchange transactions, many buyers that are seeking to mitigate daily management responsibilities are turning their attention to single/multi-tenant, triple-net leased properties for their 1031 replacement solutions. One of the driving forces for this demand is the security of a single/multi-tenant asset with investment-grade tenant(s).

NNN or Triple Net Lease structures permit all taxes, insurance and expenditures that relate to the property’s common area to pass directly to the tenant(s). The landlord or property owner is not responsible for these costs. However, in a NNN leased property, the landlord is responsible for capital items, such as the roof, structure and parking lot. In most cases the landlord pays the monthly expenses and then is reimbursed by the tenant for the applicable operational expenses.

In contrast to a Triple Net Lease (NNN), an Absolute Net Lease virtually alleviates all management responsibilities for the landlord. Under an Absolute Net Lease structure, the tenant is responsible for all expenses, repairs and maintenance, which includes all capital items such as the roof, structure and parking lot.

Net Lease Benefits:

Defer 100% capital gains tax and depreciation recapture tax

Upgrade real estate holdings

Eliminate property management responsibilities

Geographically diversify real estate holdings

Identify quality property solutions during the stringent 45-day replacement period

Cash flow from properties may be partially sheltered by new depreciation schedule

Retire with a competitive monthly income stream & future growth potential

1031 Alternatives Group, LLC - 1930 Harrison Street, Suite 603, Hollywood, Florida 33020

This material is neither an offer to sell nor the solicitation to purchase any security. The information is for discussion and information purposes only. It is not intended to replace competent legal, tax or financial planning advice. The applicable tax codes apply to and relate to federal law only. Individual states may have their own additional tax codes. Please contact the appropriate tax and legal professional in your state. This information is provided from sources believed to be reliable but should be used in conjunction with professional advice that is consistent with your personal situation. Properties represented here are not current offerings and properties of this nature may not always be available for purchase.