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Case Study 102: Jamba Juice; NNN Lease Acquisition

Explore how NextGen CRE Solutions can facilitate a successful acquisition for a client seeking optimal terms for their 1031 exchange investment on a Triple Net, single tenant asset.

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The Client's Scenario

  • Property: Jamba Juice triple net lease with 13 years remaining on lease.

  • Location: Las Vegas, excellent property location.

  • Purchase Price: $2,000,000.

  • Net Operating Income (NOI): $100,000.

  • Borrower: Strong financial profile, seeking 60% LTV.

  • Investment Strategy: 1031 exchange, requiring efficient execution and favorable terms.

NextGen's Solution & Outcome

Leveraging our extensive network and advanced platform, we can swiftly identify multiple lenders offering competitive financing solutions tailored to each client's 1031 exchange requirements.

  • Can secure a 60% LTV loan with highly favorable rates and terms.

  • Can facilitate a seamless transaction, ensuring compliance with 1031 exchange deadlines.

  • Can provide expert guidance, maximizing the client's investment return on a stable, income-producing asset.


Typical Lender Due Diligence Requirements for Single Tenant NNN Assets

Lenders meticulously evaluate various aspects to ensure the stability and security of single tenant NNN lease investments.



Tenant Financial & Lease Analysis

  • Tenant credit rating (e.g., S&P, Moody's)

  • Tenant financial statements (past 3-5 years)

  • Corporate and/or personal lease guarantees

  • Rent coverage ratios (e.g., EBITDAR to Rent)

  • Detailed lease terms analysis (rent bumps, options)

Property & Environmental Documentation

  • Executed NNN Lease Agreement

  • Title commitment and insurance policy

  • Boundary and ALTA/ACSM surveys

  • Phase I Environmental Site Assessment (ESA)

  • Certificates of occupancy & building permits

Market, Legal & Timeline Considerations

  • Local market analysis (demographics, competition)

  • Zoning verification and compliance

  • Borrower entity documents and legal opinions

  • Adherence to critical due diligence timelines

  • Property inspection reports (physical, structural)


 
 
 

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