National Net Lease Portfolio V DST
Diversified Retail Portfolio
| Status | Available |
| Type | Multi-Tenant Retail DST |
| Cash-on-cash | 5.00% |
| Leverage | 55% |
| Equity Remaining | $13.5 Million |
| Lease | See Table |
| Projected Hold Period | 6-8 Years |
| Year Built | 1996 to 2013 |
| Occupancy | 100% |
| Total Raise | $37.1 Million |
| Total Syndication | $82.1 Million |
Offering Summary
National Net Lease Portfolio V DST holds a portfolio of properties leased to a diversified collection of retailers. The portfolio is also diversified across 5 states and is leased to pharmacy, grocery, sports/fitness and restaurant tenants. There is a separate loan encumbering each of the properties in the portfolio. This allows flexibility in liquidating each property at its opportune time, relative to its lease term and/or loan maturity.
FINANCING: The aggregate purchase price of the properties is $76 Million. The acquisition of the properties was funded in part with cash provided as a capital contribution from depositor, the proceeds of a mezzanine loan obtained by the depositor from JP Morgan Chase Bank, and in remaining part through mortgage loans on the properties, as described in the PPM, in the aggregate outstanding principal amount of $45 Million. The principal loan amount, initial interest rate, anticipated repayment date, maturity date and monthly debt service payment for each loan is set forth in the Private Placement Memorandum.
| Properties, Lease Terms & Locations | ||||
|---|---|---|---|---|
| Property | Tenant | Year Built | Lease Term | Location |
| Chelmsford MA | CVS Pharmacy, Inc. | 2012 | 2038 | 24 mi NW of Boston |
| Chicagoland IL | Whole Foods Group Inc. | 2013 | 2033 | 15 mi NE of Chicago CBD |
| Fayetteville GA |
Walgreen Co. | 2002 | 2077 | 20 mi S of Atlanta CBD |
| Frisco TX |
Academy, Ltd. | 2012 | 2033 | 25 mi N of
Dallas CBD |
| Houston TX |
Walgreen Co. | 2005 | 2080 | 220 mi N of
Houston |
| St. Louis IL | Schnuck Markets, Inc. | 1996 | 2028 | 17 mi SE of St. Louis CBD |
| Stoughton MA | Fitness International, LLC | 2012 | 2027 | 20 mi S of Boston |
| Stoughton MA | TGI Friday’s Inc. | 2008 | 2018 | 20 mi S of
Boston |
| Westampton NJ | Walgreen Eastern Co., Inc. | 2009 | 2084 | 25 mi NE of Philadelphia |
Multi-Tenant Retail Real Estate: A Potential Growth Investment that Anticipates Inflation
The four major sectors of commercial real estate--retail, office, industrial and multifamily (apartments)--are ubiquitous, touching nearly every aspect of daily life. Although you may not think about it, commercial real estate is where you shop (retail), where you work (office), where you live (multifamily), and where goods are stored and distributed (industrial).
Taken together, the performance of these sectors gives a broad look at the commercial real estate industry and insight into the health of the economy as a whole. Looked at individually, these sectors provide insights into consumer, business and demographic trends. Each has its own level of risk and performs differently based on market conditions with varying rates of return.
Retail real estate has consistently outperformed the other primary sectors of commercial real estate, providing the highest return over time with the lowest level of risk, according to research from the National Council of Real Estate Investment Fiduciaries (NCREIF).
Forecasted Returns
Retail Subsectors
While many people equate retail real estate with shopping malls, non-mall retail subsectors make up over 82 percent of the retail real estate market with approximately 6.16 billion square feet. Non-mall retail encompasses everything from a stand-alone pharmacy (a single-tenant triple-net-lease property) to large lifestyle centers (an upscale outdoor shopping center with dining and entertainment options), and multi-tenant necessity-based community and neighborhood shopping centers, among others.
A Necessity-Based Shopping Center
A necessity-based multi-tenant shopping center provides a mix of essential, everyday goods and services such as groceries, discount clothing, or pet supplies. These types of centers tend to be more economically resilient because the tenants rely on nondiscretionary spending and are less susceptible to extremes in economic cycles and consumer spending. They typically consist of a large anchor tenant, such as a supermarket, along with a number of supporting tenants in smaller shop spaces.
Potential Inflation Hedge
There is a general consensus within the commercial real estate industry that we’re moving toward a period of inflation. Multi-tenant retail real estate can act as a hedge against inflation better than other types of commercial real estate assets because of the ability to increase rents at small shop spaces to keep pace with inflation. There is no assurance that rental increases will occur, however.
Opportunities For Investing In Multi-Tenant Retail Real Estate
Commercial real estate has its place in a well-balanced investment portfolio. Institutional investors such as pension funds and endowments regularly allocate 10 to 12 percent of their investment portfolio to real estate. There are a number of ways for individuals to invest in multi-tenant retail real estate. Some of these include: non-traded or traded real estate investment trusts (REITs), limited partnerships, real estate mutual funds and exchange traded funds.
Contact Us About This Property
Risks:
Please note that the listing above is not an offer to sell nor a solicitation on an offer to sell, and is being supplied to you for information purposes only. All investments have inherent risks including those risks common in real estate investment. Potential risks relating to each investment property are disclosed in a private placement memorandum that must be read by the investor prior to making an investment decision. These risks include but are not limited to:
- Private Placements are speculative
- Illiquidity (there is currently no secondary market)
- Tax status risk which may result in immediate tax liabilities, including penalties
- The fact that substantial fees associated with the purchase of the investment may, in certain cases, outweigh the tax benefits
- The risks of using leverage in real estate
- The significant tax risks for acquiring interests as replacement property
- The risks associated with fractionalized ownership in real estate and investment contracts as securities
- Property appreciation is not guaranteed
- The potential for loss of principal invested
- Other certain risks are disclosed in detail within the Private Placement Memorandum and should be reviewed before investing.
Please also note that this listing is being provided to you based on your representation to us that you are an accredited investor. The Security and Exchange Commission (SEC) defines an accredited investor as an individual with either $1 million in net worth (all assets, excluding primary residence, less all liabilities); or net income for the last two years of $200,000 or greater ($300,000 if spouse has income) with a reasonable expectation of such earnings in the current year. If you do not meet this definition of an accredited investor, please notify us immediately and disregard this message and its contents.