CalkainReston,VA. Broadstone Real Estate, LLC today announced that Broadstone Net Lease, Inc. (BNL) recently completed the acquisition of a portfolio of seven(NNN) triple net lease properties for a combined purchase price of $14.7MM.
BNL acquired seven convenience store sites located in Pennsylvania, New Jersey and Kentucky. The sites are leased to Lehigh Gas Corporation with an initial lease term of 20 years. The sites are operated under a variety of different brands. BNL has acquired 18 net-lease properties for a combined purchase price of $46.7MM so far in 2010, and is expected to complete several more transactions before year end.
A (NNN)triple net lease is only one of many commercial leasing options. In a gross lease, the lessee pays rent while the landlord takes care of everything else. Most people who rent their homes are familiar with the terms of a gross lease, as this type of lease is commonly used for residential properties. In a double net lease, the landlord assumes some of the costs of property upkeep. In a double net lease, landlords commonly cover parking, heating and cooling systems, and the structural integrity of the building.
The (NNN)triple net lease is sometimes called a true net lease, because the landlord usually has no responsibilities related to building upkeep. For this reason, many commercial landlords favor triple net leasing options. The building can generate a high level of income while the tenant keeps it in good condition, generally making improvements as well. The tenant has many of the advantages of ownership, including control over the property, without the substantial capital investment that a new acquisition represents.
A (NNN) triple net lease is individualized to the tenant and lessor. The terms of the contract may contain restrictions and stipulations to protect both parties. In some instances, for example, the terms of the lease may include a cap on total property taxesto be paid by the tenant. If the property taxes rise above a certain amount, the landlord will be responsible for covering the remainder. Protections may also be built in to cope with rising insurance rates or unexpected maintenance costs. www.calkain.com
