Single Tenant Net Lease Properties is the Only Asset Classes With a Predictable Flow of Debt: Fantini & Gorga

Tim O'Donnell

BOSTON–Single tenant net lease properties constitute one of the only asset classes with a predictable flow of debt in today’s turbulent market, according to a survey conducted by Fantini & Gorga.

“But not all NNN properties are created equal,” said Fantini & Gorga.

Here are some high points from the survey as provided by Tim O’Donnell Executive Managing Director & Principal at Fantini & Gorga:

  • The window is open for properties with strong credit tenants and significant remaining lease terms – generally 10 years or more. Other properties are considered on a case-by-case basis, with either a premium in rate or newly conservative underwriting.
  • Rates are at historic lows. Lenders have increased their spreads over the rate indexes (SWAPs and Treasuries), but rates in the 3’s are still available for acquisition and refinance of many NNN properties.
  • Strongest lender competition right now is for properties leased to Essential Businesses open during COVD-19, but other tenancies with sufficient credit are financeable as well.
  • Borrowers are advised to explore the debt options and start applications as early as possible: lender approvals and due diligence have been slowed by the current situation.

See the just-released Master Money Matrix © Net Lease Edition for the options available.