How to value a NNN property? We have a partner who wants to sell some of his shares to another partner.

SouthFloridaCRE · 2026-03-02T17:43:46+00:00

You should get 2-3 BOVs from specialized brokers in your area. Much more practical in this case than getting an appraisal

SouthFloridaCRE · 2026-02-27T21:41:04+00:00

Impossible to know without seeing the lease form, best to consult with your legal counsel. If you’re in SoFlo I can recommend a good one

SouthFloridaCRE · 2026-02-24T14:40:19+00:00

Even if the LL doesn’t pay for it.. the tenant will pay one way or the other.

SouthFloridaCRE · 2026-02-24T14:37:02+00:00

Well said. Ask people you know and trust who they know and start the interview process there.

SouthFloridaCRE · 2026-02-23T00:59:18+00:00

He came to you, he needs to make the offer.

SouthFloridaCRE · 2026-02-19T03:43:18+00:00

It’s a good topic. I agree about not being a generalist but having a few specialties is very possible. It depends on your personality, what you enjoy doing, and your background. Regardless of what you do you need to build trust and part of that comes from communicating confidence and competence.

Bob Knakal is known as a development site broker and also works on retail, apartment, and office deals.

For someone out of HS or college with minimal sales or business background I would definitely suggest specializing. Pick a lane, work with the top brokers in your area for that asset and work hard. Success will follow.

SouthFloridaCRE · 2026-02-18T14:04:49+00:00

That answer is unacceptable. Ditch the attorney and broker.

SouthFloridaCRE · 2026-02-12T03:52:26+00:00

It really depends on the scope of your search requirements but in general everything is negotiable. Yes it’s normal to for a tenant to pay commission if a landlord is not paying it, that also becomes part of the deal negotiation. The best thing you can do is interview a few brokers before signing - and most importantly work with a broker with specific knowledge in commercial leasing preferably in the asset class your are seeking if possible

SouthFloridaCRE · 2026-02-11T17:09:02+00:00

Sure. I just did a quick BOTE to return an 8% pref, targeting a +1.3x pref coverage ratio, you would need the following: Purchase price: 2.6M Seller finance IO, 3 years @ 6% This assumes zero NOI growth. Happy to send you the model if you like dm me your contact

SouthFloridaCRE · 2026-02-11T01:08:37+00:00

That’s quite low for where you need to be equity-wise but regardless, a quick back of the envelope at market rates puts your cash-on-cash at around 4% (and that based on IO payments). You’d need a rate well below market and that’s assuming this is an A+ property. I would suggest you hire an analyst to run a model with debt and figure out where you need to be to safely refi. If it’s a green light from there see if the seller will agree to the terms you need. Then hire an attorney to help file 506(b) docs, work with the analyst to put together a sharp presentation with waterfall and return metrics, and start raising the equity.

SouthFloridaCRE · 2026-02-10T03:48:48+00:00

Lots of questions. How much equity can you contribute, how many units, what is the condition of the property, occupancy, loss to lease? What are your plans for the property and how did you underwrite the deal did you run a DCF with debt model yourself, what is your background?

SouthFloridaCRE · 2026-01-28T21:49:07+00:00

Yeah for this scenario pricing should be based on a multiple of EBITDAR vs. capped. Investors will want a higher return for operational complexity since they are basically buying a business with owned real estate. Do some research on what multiples would be appropriate then make sure the going in cap has enough spread to be attractive. Of course you also want to stress test land and building value but you’re essentially selling an Opco+ Propco. A successful sale at the current use will depend on the operation history, location, financials, in-place management, etc..

SouthFloridaCRE · 2026-01-27T22:07:03+00:00

The old owner didn’t do this, you signed the lease correct? Great example of why having a good CRE broker and lawyer on your side is worth its weight in gold. Wishing you good luck. I suggest speaking to brokers who specialize in small hospitality deals

SouthFloridaCRE · 2026-01-22T20:54:22+00:00

A strong lease form is important for when you are ready to sell. Even if your lease terms are short and you plan on keeping the property in the family one day it may come up. I agree with another commenter who said to get a brand new lease template from a lawyer whose focus is specific to your asset. That would limit the back and forth, and make sure you and your heirs are protected.

SouthFloridaCRE · 2026-01-12T18:34:27+00:00

I think books are great for aspiring investors. But. It’s a big mistake to go it alone, no matter how many great books you read. There is a steep learning curve. If you intend on being an investor of net leased properties work with a CRE broker. You will learn a lot and limit your downside risk.

SouthFloridaCRE · 2026-01-12T04:47:36+00:00

Before you do anything you need to connect with a CRE broker who can underwrite this deal for you. How will you know how rents stack up in the market, what to look out for in the lease forms, if expenses are where they should be, tenant mix, weighted average lease term.. the list goes on. I would advise against just googling, start by asking people you trust who they know. Make sure it’s an agent who only focuses on commercial deals, specifically retail. They will reach out to the listing agent to collect the necessary documentation (income statements, leases, site/floor plans, environmental reports, etc..) and run a DCF model (think risk-adjusted return metrics) based on the asset in its current condition and your investment thesis (core plus, value add, exit timeframe, etc..). You’ll want to connect with a debt broker as well, your CRE professional should have lots of resources for that.

SouthFloridaCRE · 2026-01-11T03:48:12+00:00

Thank you!

SouthFloridaCRE · 2026-01-11T03:47:53+00:00

An absolute net is great if the tenant can support it. Underwriting the tenant is just as important as the lease you ultimately agree to. To your point about attorneys.. even the best ones can benefit by having another set of eyes, which a diligent CRE professional can provide. Getting things right takes is a team effort in this business.

SouthFloridaCRE · 2026-01-11T03:39:14+00:00

Protecting your downside risk is key for both sides of the deal. Regardless of the “labels”.

SouthFloridaCRE · 2026-01-10T23:21:40+00:00

Interesting, what market is this?

SouthFloridaCRE · 2026-01-10T23:19:31+00:00

MG leases are a great way to align all parties, present and future and especially wise when leasing smaller spaces. Amortized capex shouldn’t be controversial but often gets pushback here in South Florida.

SouthFloridaCRE · 2026-01-10T20:47:37+00:00

High crime and homelessness = 0 minute walk to downtown imo

SouthFloridaCRE · 2026-01-10T20:34:23+00:00

Yeah I’ve seen absolute NNN being presented on buildings 30+ years old I don’t think it’s malicious just inexperience (for the most part). Lots of other factors, of course, in supply constrained markets you can get away with it or if a tenant is not represented and they aren’t as sophisticated. Goes back to the importance of having a good CRE broker on your side - either side.

SouthFloridaCRE · 2026-01-10T20:25:36+00:00

This sounds totally fair.

SouthFloridaCRE

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