Single tenant net lease syndications
Single tenant net lease syndications
Why that 1031 "mailbox money" investment is more complex than you thought
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Single tenant net lease syndications
Welcome back 👋
Someone sent me a message today asking about single tenant net lease investments. Although I was in the middle of writing another article (it’s on the “quitting your 9-5 marketing strategy” - stay tuned!), I got excited and decided to write this one instead.
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Today we’re going to dive deep into Single Tenant Net Lease (“STNL”) assets, which is what I focused on while I was at STORE Capital, one of the largest players in this space. This is a very common asset class among syndications (especially via 1031 exchanges and DSTs, which I touched on here).
I hope this exercise will help you understand why STNL investments aren’t as simple as many brokers or GPs make them out to seem.
Today's agenda:
What is a single tenant net lease (STNL) investment?
Isn’t buying a single tenant building more risky for the investor?
What is a sale-leaseback and why do they exist?
When do sale-leasebacks occur?
Let’s dive in.