Under a new 20-year,
absolute net lease agreement, the company will master-lease the campus to Summit Medical Group (SMG), a multispecialty medical company.
The WAG Albany Property is under an
absolute net lease with slightly less than 14 years remaining on the initial lease term.
He began by computing a net operating income (NOI) for the going concern, then sought to isolate the cash flow to the real estate using a "lease coverage analysis." To perform this analysis, the county's appraiser evaluated nine market transactions, identifying the NOI per unit for the going concern and the rent per unit under the terms of an
absolute net lease for each.
There were over 12 years remaining on the
Absolute Net Lease at closing.
All 154 properties are subject to an
absolute net lease for 20 years with a subsidiary of Petroleum Marketing Group, a leading jobber and distributor of petroleum products and operator of convenience stores.
pursuant to an
absolute net lease with approximately 20 years of remaining lease term and 1.5 percent annual base rental rate increases.
On The Border has fifteen years remaining on their recently signed
absolute net lease. The lease features 1% annual rental escalations throughout the primary term and in each renewal option period.
Generally, the impact will be somewhat less for warehouses and other industrial properties for which owners are generally not required to do significant tenant improvements, although there will usually still be some required reserve for building components and leasing commissions (except in a long-term
absolute net lease).
In conjunction with the agreement, the acquired portfolio will be 100% leased under a 15-year
absolute net lease with two, ten year renewal options and with annual rent escalators tied to the consumer price index with a floor of 2% and a cap of 3%.
There are over eight years remaining on the
absolute net lease that expires in November 2022.
Each property included an
absolute net lease with zero landlord responsibility and a franchisee guarantee.
This portfolio is 100% occupied and operated by Colonial Oaks Master Tenant, LLC under a 15-year
absolute net lease with annual rent escalators of 6.5% after the first year and 2.5% thereafter.