Should you invest in Net leased commercial Property? Or Multifamily or Self-Storage?

Who would invest in Self-storage properties?

ATLANTA – Within 12 months, Stein Investment Group is set to bring almost 250,000 square feet of self-storage facilities to metro Atlanta, a region dotted with suburban and urban sub-markets with a dearth of this asset type.  Construction is currently underway in the Old Fourth Ward on Decatur Street Self-Storage that will provide modern storage solutions to residents of the surrounding urban, residential communities.

Selfstorage 2

The REITs are the major owners in a largely fragmented sector, as about 80 percent of self-storage properties are owned by small mom-and-pop-type firms. But private equity is starting to enter the sector.

What is expecting return of investment?

Long-term returns for self-storage beat out all other commercial real estate sectors, The five-year average return for self-storage is at 24.4 percent, the 10-year average is at 17.8 percent and the 15-year average is at 20.3 percent, beating out the closest sector, multifamily, by about 400 basis points for each category. These numbers, as well as a lack of new supply and unusually high demand, have led to increased competition for assets.

multifamily Building 3

Comparison Table

Property Type Five-year Average of ROI
Multifamily 24% or 4.8% per year
Self-Storage 24.4% or 4.88% per year
NNN CRE 27.5% or 5.5% per year

NNN CRE Various

This simple comparison showing the return of Net Lease commercial property has the highest return of among these investments.

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First Key selection of net lease Commercial Real Estate investment…?

Who is your tenant (who pays and guarantees the lease for you)

One of our criteria selection for net lease commercial real estate investment (NNN CRE) is very carefully select the right tenant.  In fact, it is also one of the best way to mitigate your risk as well.

For example, if tenant is Dollar General, you can find out this company profile as follow:

Dollar General Corporation is a United States chain of variety stores headquartered in Goodlettsville, Tennessee. As of January 2015, Dollar General operated over 11,500 stores in 40 U.S. states.

The company acquired the 280 stores of the P.N. Hirsh Division of Interco, Inc. (now Heritage Home Group) in 1983, and in 1985 added 206 stores and a warehouse from Eagle Family Discount Stores, also from Interco, Inc.  In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general-merchandise retailer. In some cases, stores are within a few city blocks of each other.

Dollar General offers both name brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf. Although it has the word “dollar” in the name, Dollar General is not a dollar store. Most of its products are priced at more than $1.00. However, goods are usually sold at set price points the range of 50 to 60 dollars, not counting phone cards and loadable store gift cards.

Dollar General often serves communities that are too small for Walmarts (although many locations are in relatively close driving distance to a Walmart store or in the same communities that Walmart is located). It competes in the dollar store format with national chains Family Dollar and Dollar Tree, regional chains such as Fred’s in the southeast, and numerous independently owned stores.

Since 2000, Dollar General has experimented with stores that carry a greater selection of grocery items. These stores, (similar to the Walmart Supercenter, but much smaller), operate under the name “Dollar General Market”.

Formerly called J.L. Turner and Son Wholesale
Type Public
Traded as NYSE: DG
S&P 500 Component
Industry Discount retailer
Founded 1939 in Scottsville, KY
Founders J.L. Turner
Cal Turner Sr.
Headquarters Goodlettsville, Tennessee
Number of locations 11,500+ (2014)
Areas served Contiguous United Statesexcept for the Northwest,North Dakota and Maine
Key people Richard W. Dreiling (Chairman & CEO)
David M. Tehle (Executive Vice President & CFO)[1]
Products General Merchandise, Grocery, Photofinishing
Revenue $16.022 billion (2013[1])
Operating income $1.655 billion (2013)
Net income $952.7 million (2013)
Total assets $10.367 billion (2013)
Divisions Dollar General Market
Website Dollar General

The dollar store chain is gearing up for heated competition after losing its bid to buy Family Dollar in January, which will instead merge with Dollar Tree and usurp Dollar General of its title as the biggest dollar store company in the country.

As part of its efforts to compete, Dollar General said it will open approximately 730 new stores in 2015, bolstering its current footprint of 11,789 stores across 40 states. To compare, Dollar Tree will have approximately 13,000 stores after it combines with Family Dollar.

In the quarter, Dollar General said same-store sales climbed 4.9%, driven by strong growth across food and tobacco, as well as increased customer traffic and average transaction size. Total revenue rose 9.9% to $4.94 billion, just missing analyst estimates of $4.95 billion.

The company revealed plans to return capital to shareholders through a $1 billion share repurchase program, plus the initiation of a quarterly dividend of 22 cents per share.

Net income rose to $355 million, or $1.17 per share, compared to $322 million, or $1.01 per share, a year ago. This was in line with the consensus call for $1.17 per share.

For 2015, the company is projecting per-share earnings of $3.85 to $3.95 and revenue growth of 8 to 9%. Analysts had forecast $3.99 per share in earnings and 9% revenue growth.

Shares are up 20% over the last 12 months and rose 2% to $73.15 in premarket trading.

If you would like to invest in net lease commercial real estate (NNN CRE) with Dollar General, please contact us.

If you do not see what you like, please send me your ‘wish list’ with specific investment criteria, we will locate and match your investment wish list.

PROCEDURE:  When you select what NNN CRE(s) you are interested, please send me your Letter of Intent (“LOI”) and Proof of fund (“POF”) to engage with the Seller.  The closing time frame is from 30 to 90 days at this point if the Seller accepts our offer.  The escrow instructions will be provided for wiring of your investment funds once the Sale and Purchase Agreement is executed.  Please note your POF can be a Bank Comfort Letter (“BCL”) from Tier 1 bank or a copy of your deposit with First American Title.

Please note our escrow service is with First American Title, website:

Daniel Nguyen

DAJK Group


3592 Rosemead Blvd

Rosemead, California 91770

Los Angeles – USA

For further clarification, please sign-in our free consultation

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Top 6 Terms You Should Know Before Investing in net lease commercial real estate

NNN CRE Various

Website:  DAJK GROUP

1.  Net Lease:  A provision that requires the tenant to pay a portion or all of the taxes, fees and maintenance costs for the property in addition to rent. Net lease requirements are most commonly used with commercial real estate.

2.  Single Net: Lessee accepts to pay a monthly base rent and agrees to pay the property taxes. The owner is accountable for all other operating expenditures of the property.

3.  NN: An agreement in which the tenant is responsible for both property taxes and premiums for insuring the building. Unlike a single net lease, which only requires the tenant to pay property taxes, a double net lease passes more expenses along in the form of insurance payments. The landlord is still held responsible for structural maintenance expenses. Each month, the landlord receives the base rent plus the additional payments. Double net leases are most commonly found in commercial real estate.


For commercial properties with multiple tenants, such as a shopping mall, taxes and insurance fees may be assigned to the individual tenants on a proportional basis. Even if property taxes and building insurance premiums are considered the responsibility of the tenant, owners of commercial property should have property taxes passed through themselves in order to ensure that they are aware of payment issues.

4.  NNN: A lease agreement that designates the lessee (the tenant) as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased asset, net building insurance and net common area maintenance. The lessee has to pay the net amount of three types of costs, which how this term got its name.


For example, if a property owner leases out a building to a business using a triple net lease, the tenant will be responsible for paying the building’s property taxes, building insurance and the cost of any maintenance or repairs the building may require during the term of the lease. Because the tenant is covering these costs (which would otherwise be the responsibility of the property owner), the rent charged in the triple net lease is generally lower than the rent charged in a standard lease agreement.

5.  CAP Rate: Rent and capitalization rate are both factors that determine whether a real estate purchase is a wise investment. Rent is the monthly payment from the tenant(s), measured in currency. Capitalization rate, sometimes called cap rate, is a percentage that represents the return on investment or ROI. The rate of ROI takes into account both variable and fixed costs. Rent is one part of the capitalization rate. Other factors include the amount of time a unit may remain unoccupied, the cost of repairs, depreciation and any other variables that are subtracted from the income. The result is divided by the total cost of the building to calculate the rate.

Landlords and even some property management companies will look at the capitalization rate as the main factor in determining whether they should get involved in a potential deal. It is important information to have when deciding on residential, commercial or even industrial investments. The rate can be applied to any asset allocation that is intended to be occupied by tenants.

Real estate investment information is vital for every person who is interested in portfolio diversification. No matter what acquisition strategy an investor is using, he or she should know the cap rate and other basic data prior to making an offer on a rental property. An understanding of real estate economics helps investors find the few good deals in a vast, rapidly changing market.

Knowing the capitalization rate also helps investors choose the right strategy for their purchases. They may decide to buy and hold, short sell or pick up foreclosures from a Multiple Listing Service. Taking the right approach can save investors from making huge mistakes that could cost them a fortune.

6.  NOI (Net Operating Income): A calculation used to analyze real estate investments that generate income. Net operating income equals all revenue from the property minus all reasonably necessary operating expenses. Aside from rent, a property might also generate revenue from parking and service fees, like vending and laundry machines. Operating expenses are those required to run and maintain the building and its grounds, such as insurance, property management fees, utilities, property taxes, repairs and janitorial fees. NOI is a before-tax figure; it also excludes principal and interest payments on loans, capital expenditures, depreciation and amortization.


NOI appears on the property’s income and cash flow statements. If the total is negative, it is called a net operating loss (NOL). NOI is considered less vulnerable to manipulation than some other figures because it can only be increased by raising rents and associated fees or by decreasing reasonably necessary operating expenses. NOI is not the same as taxable income or cash flow. The difference between NOI and EBIT is non-operating income.

The “reasonably necessary” criterion for operating expenses means property owners might adjust some of their actual expenses up or down. If the owner provides one tenant with free rent, valued at $12,000 a year, in exchange for acting as property manager, but it would cost $24,000 to hire a professional manager on the open market, the owner can subtract the “reasonably necessary” cost of $24,000 from revenue rather than the actual cost of $12,000.

NOI helps owners and potential owners of retail buildings, office buildings and residential single- and multi-family properties to calculate several helpful ratios. NOI is used in determining the capitalization rate, which helps determine the property’s value and helps real estate investors compare different properties they might be considering buying or selling. For financed properties, NOI is also used in the debt coverage ratio (DCR), which tells lenders and investors whether a property’s income covers its operating expenses and debt payments. NOI is also used to calculate the net income multiplier, cash return on investment and total return on investment.



Compared to office, warehouse, storage facilities, parking lots, apartments and other forms of commercial investments, triple net leases are by far the most stable and less burdensome of the opportunities available.  Most of the ventures mentioned above have business related and management associated with their financial outcome.  Gross leases and modified gross leases associated with most office and industrial buildings involve landlord responsibilities under various conditions. These entities have numerous obligations for the landlord to oversee or pay. When many duties or responsibilities are passed on to the investor, a much larger return should be expected for the work and financial burden placed on the landlord. Most of these types of investors are younger in age and can tolerate the various problems that occur monthly. The baby-boomer’s and older investors ready to retire, have little desire to be responsible for all of these matters and prefer a smaller return that is safer and less stressful.


Net Lease Commercial Real Estate Investor

Website:  DAJK GROUP

Mr. Daniel Nguyen

3592 Rosemead Blvd #526
Rosemead, California 91770
Los Angeles – USA
Skype:  daniel58644

Tel:  +562.301.7231 T

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For further clarification, please sign-in our free consultation.


NET LEASE Big Buyers

Net Lease Commercial Real Estate Investor

Additional information at:


15 retail properties for around $42.1 million

Agree Realty Corporation has expanded its portfolio with the acquisition of 15 retail properties for around $42.1 million. These deals added stores of Bed Bath & Beyond Inc. (BBBY – Analyst Report), Old Navy and Dress Barn for the first time to the company’s portfolio, besides the first Wendy’s restaurants.

The acquisition of these net leased properties gives rise to much diversification in Agree Realty’s portfolio base, bringing in 12 diverse tenants from 9 different retail sectors. Positioned across 10 states, these properties enjoy a weighted-average lease term of approximately 11 years, making them a strategic buy for the company. They are net leased to retailers like Sherwin Williams (SHW- Analyst Report), Family Dollar Stores Inc. (FDO – Analyst Report), Academy Sports + Outdoors and Jo-Ann Fabric and Crafts.

As a matter of fact, the retail real estate landlords are having a tough time amid a rising use of e-commerce in the retail sector. Online shopping has been gaining much momentum among consumers as it is more convenient and at times cheaper compared to shopping from physical stores.

Considering these factors, Agree Realty is targeting investments in assets that are leased to e-commerce resistant sectors. The company is focusing on net leasing of properties to the leading retailers in this sector, thereby ensuring steady rental revenue from such properties.

The company has, in fact, aimed for an acquisition volume of $175–$200 million in 2015. With these acquisitions, we believe, the company would be able to leverage the improving market fundamentals and ride on the growth trajectory. But issues surrounding interest rates may hurt its growth momentum to some extent.

ADC Press Release

AGREE REALTY ANNOUNCES THE ACQUISITION OF 15 PROPERTIES FOR $42.1 MILLION BLOOMFIELD HILLS, MI (March 9, 2015) – Agree Realty Corporation (NYSE: ADC) announced today that it recently closed on the acquisition of 15 retail properties for an aggregate purchase price of approximately $42.1 million. The properties are net leased to 12 different tenants operating in 9 diverse retail sectors and located in 10 states. The transactions were completed at a weighted-average cap rate of 8.08% and have a weighted-average lease term of approximately 11.0 years. The recently closed transactions include the Company’s first Bed Bath & Beyond, Old Navy and Dress Barn stores, as well as the first Wendy’s restaurants in the portfolio. Also acquired were properties net leased to Sherwin Williams, Family Dollar, Academy Sports + Outdoors and JoAnn Fabric and Crafts. “We are pleased to announce these transactions and excited about the investment opportunities in our pipeline,” said Joey Agree, President and CEO. “We remain focused on investing in properties net leased to leading retailers operating in e-commerce resistant sectors and are on track to achieve our targeted 2015 acquisition volume of $175 to $200 million.” About Agree Realty Corporation Agree Realty is primarily engaged in the acquisition and development of properties net leased to industry leading retail tenants. The Company currently owns and operates a portfolio of 224 properties, located in 38 states and containing approximately 4.6 million square feet of gross leasable space. The common stock of Agree Realty Corporation is listed on the New York Stock Exchange under the symbol “ADC”.



In 1971, Richard Agree, our Executive Chairman of the Board of Directors founded Agree Development Company, the predecessor to Agree Realty Corporation. Over its 23 year history, Agree developed over 40 community shopping centers primarily throughout the Midwestern and Southeast United States.

With an Initial Public Offering of 2.5 million shares in 1994, Agree Realty Corporation commenced operations as a publicly traded Real Estate Investment Trust (REIT). Follow-on equity offerings have subsequently been issued in 1997, 2003, 2005, 2010, 2012, 2013 and 2014. Agree Realty is listed on the New York Stock Exchange under the ticker symbol ADC.


Agree Realty Corporation (NYSE: ADC) is a fully-integrated, self-administered, and self-managed REIT focused on the development and acquisition of net lease retail properties throughout the United States. Our growing portfolio of industry leading retailers consists of 218 assets in 38 states, containing approximately 4.4 million square feet of gross leasable space.

Agree’s disciplined and focused investment strategy, its institutional access to capital, and the Company’s industry-wide relationships, consistently produce high-quality opportunities with superior risk adjusted returns.

The Agree Team’s expertise and strategic execution seeks to maximize value for all stakeholders.  Our innovative development and acquisition strategies, adaptive real estate technology, and extensive capabilities are relied upon by our industry leading partners, including Walgreens, McDonalds, JP Morgan Chase, PNC and Wawa.

Building upon the foundation of excellence established throughout the past four decades, Agree Realty continues to be a market leader in the net lease space.

Net Lease Commercial Real Estate Investor

Additional information at:


Mr. Daniel Nguyen

3592 Rosemead Blvd #526
Rosemead, California 91770
Los Angeles – USA
Skype:  daniel58644

Tel:  +562.301.7231 T

Resource net lease books at Amazon Corner

For further clarification, please sign-in our free consultation.

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