Net lease real estate like Walgreens offers many benefits for investors looking for a stable income source without the additional landlord duties and expenses that come with owning the property.
In a typical NNN lease, the tenant carries the majority of the property’s expenses, for instance, repair and maintenance, insurance, taxes, alongside rent.
The most profitable triple net or NNN properties for sale have some essential things in common, which indicates a good investment that’ll last long. They are:
The Building’s Physical Location: A property in an accessible location, especially on a corner with proximal businesses and high traffic that brings more people to the area, is fantastic for NNN lease properties.
Geographical Location: Growing areas and towns with economic and population boom are ideal for NNN properties.
Walgreens is highly sought-after in the NNN market because they often have long-term tenants and meet all the traffic and location criteria, which defines any profitable NNN property with long-term potential.
The brand is popular and trusted by consumers, and even in economic downtimes, people still need medicines and other necessities offered by companies like Walgreens.
When searching for Walgreens investments for sale, choosing the best property for your portfolio can be challenging to accomplish, so you might want to get a professional net lease advisor like Buy NNN Properties to help.
They’ll ensure you choose the right property, understand the applicable cap rates, and get the most beneficial lease terms.
How to Invest in NNN Properties
When deciding to invest in Walgreens real estate, there are several steps to take.
We’ve outlined the most efficient ones that have worked for our clients over time.
Consider opening a Dropbox or Google Drive folder for storing every information you get on various sites once you start getting potential investment opportunities.
You might likely not keep up with every property since you probably have not seen them in person.
So consider keeping everything in a place where you can quickly revisit it whenever you’re discussing a project with your investment advisor, partners, or team.
It’s best to keep a spreadsheet comparing the various merits and demerits of each NNN property.
However, you can do whatever rocks your boat when diving into Walgreen real estate.
Immediately you decide on a property, ask your investment advisor or broker to draft a letter of intent before buying the property.
Decide on Preferred Investment Returns
NNN investments come with various returns depending on the location, tenant, landlord responsibilities, remaining lease term, year of construction, amongst others.
Therefore, two investments with the same guarantee and tenant can give different cap rates.
Before investing in Right Aid real estate or any other form of NNN investment, consider deciding on the type of return to make and stick to that criteria.
Don’t settle for a 5 percent cap if you seek a 5.5 percent cap rate. It’d be best to research the market and understand its current pricing to discover other opportunities.
It’s imperative you conduct your own research before hiring a professional to help you find Walgreens real estate investments to buy.
You can start by visiting Walgreens corporate website to learn more about the company.
Set Your Term and Tenant Criteria
Not all NNN leases or tenants are created equally.
You might be offered some NNN investment opportunities at an attractive cap rate, but further research can show that the project’s current lease might be remaining only three years.
Every tenant also has their own credit rating, depending on their type of industry or business, number of locations, and financial stability.
It’s pertinent to set your term and tenant criteria on the front end to narrow down your search.
Hire a Triple Net Lease Advisor
Once you’ve decided on a few options, it’s now time to get a triple net lease advisor on board.
An NNN lease advisor is a commercial real estate brokerage or broker with years of experience in triple net investing. They have the knowledge and resource to help set you for success, find great investments, and perform due diligence.
When interviewing potential advisors, you must consider their years of industry experience as a triple net advisor.
Your residential real estate agents or the average commercial broker won’t be experienced in the NNN investment field.
Get the Right Lending Partner
While Walgreens real estate investments can make attractive all-cash deals, it’d be wise if you start the lending conversations early to get the debt terms on time.
Your local bank could help if they’re okay with it, or you seek a mortgage broker to look for those deals on your behalf.
Having the debt terms on the front end can aid in your project’s underwriting so that you can jump on any offer that fits your criteria once you see one.
Perform Thorough Due Diligence
After accepting your offer, you’ll need to perform your due diligence on the tenant and asset.
Since you might not be onsite, you can find a good local inspector to check the property and prepare a report for you to review.
Ensure to check the existing lease. It’s very crucial.
Then send it to your attorney for them to review as well before making the final decision.
Working with a reputable NNN lease advisor helps you ensure that you get access to the best Walgreens real estate properties available and understand the net lease details before entering any deal.
Net lease advisors ensure that you get the best properties with high-reward and low-risk scenarios that you want for your triple net property.
A significant component of that method is opening stores in very profitable locations.
Remember that when Walgreens signs a lease for a new store, they’re committing to pay rent for that property for at least 20 years.
Rest assured as an investor that Walgreens has already vetted that location thoroughly, which means the area is likely to have value or appreciate with time than other investment properties.
To learn more about investing in Walgreens real estate, consider checking Walgreens shareholder services or visit Buy NNN Properties.