NNN DEAL SELLS ABOVE MARKET AFTER ADVICE ON TENANT LEASE
CHALLENGE:
Three out-of-state, non-real estate investor partners owned a single tenant NNN free standing restaurant in Atlanta. During their ownership, t h e s t a t e D e p a r t m e n t o f Transportation installed a landscaped median in the middle of the road directly in front of the subject property affecting access and tenant’s sales. Ownership turned to Ben Pargman for advice on how to position the property for sale so equity could be exchanged into a higher yielding investment closer to home. The owners had limited experience with NNN investing and had aggressive expectations about what pricing could be obtained.
RESULT:
Ben presented the clients with models that illustrated how the market was likely to respond to an investment opportunity with the then current lease and also alternative models reflecting certain renegotiated terms with the tenant. Ben’s prior experience with retail restaurant leasing proved valuable renegotiating a lease with terms that put the tenant in a healthier and more stable position which ultimately drove value for the eventual sale of the property. Ben then strategically marketed the opportunity in search of a buyer who understood the value of the both the lease and the real estate. While traditional marketing vehicles where utilized to tap into the national NNN investor pool, ultimately, it was Ben’s personal relationships that identified a purchaser willing to pay premium above what the national NNN market would bring in recognition of exceptionally well located real estate.
Client Testimonial:
“A friend referred me to Ben as the broker who could get the job done for us with our investment property in Atlanta. Ben told it to us like it was and warned that the number we had in mind was very aggressive, but doable if we could be patient. In the end, Ben got us a great price — above what the market initially suggested — but what he said was possible with patience. He guided us through the process and handled a very demanding buyer skillfully. We’d be pleased to work with Ben again.”
– Jim Higgins, Nashville, TN
