Build To Suit
NNN Lease Investors can provide 100% of the cost for construction of new facilities for the same quality of tenants. There are several ways to structure a “built-to-suit” situation.
It may be a joint venture (JV) between NNN Lease Investors and a tenant, or in the case of construction for government or public educational institution, a public-private partnership (PPP or P3). Alternatively, it may be a contractual relationship between the tenant and a builder.
As the financing source for these transactions and the ultimate owner and landlord of the property, NNN Lease Investors needs to have an executed lease from a qualifying tenant and a bondable construction contract to fund the venture. This assumes that the site is under contract or owned and is approved for proposed use.
Retail and Distribution
Retail and distribution businesses frequently use one or more of the various build-to-suit structures because they like to conserve their cash to invest in their own operations which have higher return on investment. Similarly, non-profits, municipalities, and school systems use build-to-suits, especially when their borrowing capacity is limited.
NNN Lease Investors will enter into any of the various forms of build-to-suits with any qualified partners.
It also participates with a developer and a builder in NNN Lease Developers, LLC. This entity is focused on establishing itself as a regional qualified developer for several top tier distribution companies. NNN Lease Investors’ role in this entity is to provide financing for the project, the same role it has in any other transaction.