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Hello NNN Enthusiasts!

Welcome to Hughes CRE Insider, your FREE go-to source for the latest insights, trends, and updates in the world of Triple Net (NNN) commercial investment properties. Whether you're a seasoned commercial real estate broker or an owner/investor looking to dive into the world of NNN properties, our newsletter is tailored to provide you with valuable knowledge and resources to enhance your expertise and success in this lucrative sector.

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Featured Article

Unlocking Success: Deciphering Location Analysis for NNN Investments

In the dynamic world of real estate investment, success often hinges on the strategic selection of location. This is particularly true for NNN (Triple Net) investments, where factors influencing location can significantly impact the stability and profitability of your investment portfolio. In this edition of our newsletter, we delve into the critical elements of location analysis for NNN investments, shedding light on the key considerations that can make or break your investment strategy.

1. Demographics and Market Trends:

Understanding the demographics and market trends of a location is fundamental to making informed investment decisions. Factors such as population growth, income levels, employment opportunities, and local economic stability can provide valuable insights into the potential for sustained demand and growth in the area.

2. Visibility and Accessibility:

The visibility and accessibility of a property play a crucial role in its success as an NNN investment. High-traffic locations with easy access from main roads or highways often attract more customers, resulting in increased foot traffic and higher tenant retention rates. Proximity to complementary businesses and amenities can also enhance the desirability of the location.

3. Tenant Quality and Creditworthiness:

The quality and creditworthiness of the tenant are paramount considerations in NNN investments. Triple Net leases typically place responsibility for property expenses, including taxes, insurance, and maintenance, squarely on the tenant. Therefore, choosing tenants with strong financial standing and a track record of fulfilling lease obligations can mitigate the risk of income disruption and ensure consistent cash flow.

4. Lease Terms and Stability:

Examining the terms of the lease agreement is essential for assessing the stability and profitability of an NNN investment. Long-term leases with built-in rent escalations provide a reliable source of income and protect against inflationary pressures. Additionally, understanding the lease structure, including renewal options and termination clauses, is critical for anticipating potential risks and opportunities associated with the investment.

5. Regulatory Environment and Zoning Laws:

Navigating the regulatory environment and zoning laws of a location is vital for ensuring compliance and minimizing legal risks. Familiarizing yourself with local ordinances, building codes, and zoning restrictions can help prevent unexpected hurdles and ensure smooth property management operations.

6. Market Competitiveness and Supply Demand Dynamics:

Assessing the competitive landscape and supply-demand dynamics of the market is essential for gauging the potential for rental growth and capital appreciation. Analyzing factors such as vacancy rates, rental rates, and development pipeline can provide valuable insights into market conditions and inform your investment strategy.

In conclusion, conducting a comprehensive location analysis is imperative for maximizing the success of your NNN investments. By carefully evaluating demographics, market trends, tenant quality, lease terms, regulatory environment, and market competitiveness, you can identify lucrative investment opportunities and mitigate potential risks. Remember, informed decision-making is the cornerstone of profitable real estate investments.

NNN Property Spotlight

ABSOLUTE NNN GAS STATION FOR SALE

For Sale $2,200,000 | 6.00% Cap Rate

Hughes Commercial is pleased to present the exclusive listing for a Valero Gas Station located at 3931 Peachtree Industrial Blvd, Duluth, GA 30097. The site consists of roughly 1,500 rentable square feet of building space on estimated 0.38-acre parcel of land. This Valero Gas Station is subject to a 15-year absolute triple-net (NNN) lease, which commenced December 29th, 2017. The current annual rent is $132,371 and is scheduled to increase by 1% every year throughout the base term and in each year of the three (3), five (5)-year renewal options.

Original 15-Year Absolute Triple-Net (NNN) Lease  

+/- 8 Years Remaining

Three (3), Five (5)-Year Tenant Renewal Options

1% Annual Rent Increases

Net Lease Gas Stations Offer Bonus Depreciation 

Contact Today for Offering Memorandum

 Contact For More Information

Industry News Roundup

Stay up to date with the latest news and developments in the triple net (NNN) industry with our curated roundup of headlines from around the web.

-Walmart opens three of 18 planned new Texas health centers (Read More)

-SQRL agrees to sell c-store arm to Louisiana company (Read More)

-Batteries Plus continues aggressive expansion (Read More)

-Aldi, Lidl continue gaining visitors, but different ones (Read More)

-A Net Lease Developer With Access to Community Bank Capital (Read More)

NNN Tenant Profile

Tenant Description

Buffalo Wild Wings, renowned for its casual ambiance and delectable wings and beer offerings, emerges as a compelling choice for net lease investments, boasting several enticing features. One notable aspect is its national prominence and revered status within the sports enthusiast community. Buffalo Wild Wings' lease agreements encompass a blend of NNN and Ground Lease arrangements, alleviating the owner of any financial obligations related to maintenance. Moreover, the restaurant's layout mirrors that of other popular casual dining chains, rendering it an appealing prospect for alternative restaurant tenants should Buffalo Wild Wings opt not to renew their lease, facilitating swift backfilling.

The origins of Buffalo Wild Wings trace back to 1982 when Jim Disbrow and Scott Lowery envisioned a dining establishment centered around Buffalo-style chicken wings. Later joined by Mark Lutz as a third partner, the trio assumed collective responsibilities in managing the restaurant. In 1992, Buffalo Wild Wings embarked on franchising its concept, marking a pivotal moment in its expansion journey. By October 1999, the brand celebrated the inauguration of its 100th location, comprising 23 corporately owned and 77 franchisee-operated outlets. Subsequently, in a bid to fuel further growth, Buffalo Wild Wings divested a majority stake valued at $8.5 million to three venture capital firms.

Today, Buffalo Wild Wings reigns supreme as the preeminent sports bar brand in the United States, boasting a global footprint that spans over 1,200 restaurants across 10 countries. With its widespread recognition and expansive reach, Buffalo Wild Wings stands as a beacon of opportunity in the realm of net lease investments.

Intrigued by the prospect of investing in Buffalo Wild Wings or similar ventures? Don't hesitate to reach out for further insights and guidance.

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Hughes CRE Insider Team