Posted on October 06, 2020
One reason investors tend to favor triple-net-lease (NNN) property is that they can sit back and collect a steady stream of passive income from rental payments without incurring any of the costs to manage and operate that property. Instead, an NNN lease typically transfers those operating expenses to the tenant who must their pro rate share of those costs over the life of the lease term. While the devil of these financial obligations must be detailed in the terms of the lease agreement, NNN tenants will typically be responsible for paying rent, utilities and repairs on the leased space as well as their share of the structure’s property insurance, real estate taxes and common area maintenance (CAM) costs, which can include the following:
- Signage;
- Parking lot maintenance, repairs and lighting;
- Landscaping and lawn care;
- Security staff and systems;
- Cleaning, janitorial services and trash removal;
- Common area utilities;
- Sewage, plumbing, electrical and HVAC repairs and maintenance;
- Landlord’s property management expenses; and
- Capital expenditures for new windows, doors, roof or HVAC
Investors should work with experienced real estate advisors to assess triple-net-lease opportunities to identify and understand their specific responsibilities for managing the property and covering all its operating expenses.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.
Posted on September 29, 2020
Brothers Ibrahim Al-Rashid, Salman Al-Rashid and Mohammad Al-Rashid of Limestone Asset Management Purchase the Properties Through a Joint Venture Between Limestone Asset Management and Orion Real Estate Group
SARASOTA, FL (Sept. 28, 2020) — Miami-based Limestone Asset Management, via a joint venture with Orion Real Estate Group, closed on two high-end retail properties for $15.5 million at St. Armands Circle, one of Florida’s most iconic shopping and dining destinations, and Sarasota’s No. 1 tourist destination: 362 St. Armands Circle and 371 St. Armands Circle. Limestone Asset Management invests in and acquires real estate properties over all asset classes throughout North America.
Ocean Bank, the largest independent state chartered commercial bank headquartered in Florida, is providing financing.
Limestone Asset Management is an affiliate of Orion Real Estate Group, their joint venture partner in the deal. Limestone Asset Management uses Orion Real Estate Group’s expertise to complete all of its North America-based transactions. Orion Real Estate Group is led by President Kevin J. Sanz. The seller was represented by Mark Drazek and Ray Romano of CBRE’s Net Lease Property Group.
The property at 362 St. Armands Circle now encompasses three long-term tenants: Le Macaron, an authentic French pastry shop and sidewalk café at 362A; Breezin’ Up, offering embroidered and silkscreened clothing for the entire family at 362B; and Sahara, featuring women’s clothing, jewelry and accessories, at 362C. Tommy Bahama ― offering apparel for men and women, footwear, accessories and home décor ― is currently located 371 St. Armands Circle.
“Both 362 and 371 St. Armands Circle are trophy properties in booming Southwest Florida, and both of my brothers and I are very pleased to add this to our growing asset base of commercial properties within Florida,” said Ibrahim Al-Rashid, chairman of Limestone Asset Management. “This modern, premier shopping and dining district, originally conceived by circus magnate John Ringling in 1925, is an upscale destination that vacationers from all over the world enjoy.”
Sarasota is experiencing what City Manager Tom Barwin calls “probably the biggest growth spurt in the city’s history.” The influx of new residents is dominated by wealthy baby boomer retirees, young families, and entrepreneurial millennials. Overall, the county’s population has grown by 16% since 2010.
Limestone Asset Management’s most recent purchase prior to the St. Armands Circle properties was seven outparcels of The Mall at Millenia in Orlando, Florida for $22.7 million. The acquisition included more than 100,000 square feet of commercial and office space. Limestone currently holds $200 million in commercial and mixed-use real estate located across the U.S.
About Limestone Asset Management: Miami-based Limestone Asset Management was founded in 2010 and invests in and acquires real estate properties over all asset classes throughout North America. Its holdings exceed $200 million. For more information, visit https://orionmiami.com/our-affiliates/.
About Orion Real Estate Group: Orion Real Estate Group provides commercial real estate services to investment clients around the world. Since its founding in 1978, the firm has been involved in more than $4 billion in transactions and holds a portfolio exceeding $800 million. Its headquarters are located at 200 S. Biscayne Blvd, 7th floor, Miami, FL 33131. For more information, visit https://orionmiami.com/ or call (305) 278-8400 or 1-888-255-4502.
Posted on September 22, 2020
In the current economic climate, property owners hoping to receive monthly rental payments should not be surprised if they instead receive legal notice of a commercial tenant’s filing for bankruptcy. When this happens, landlords can take proactive measures to protect their interests and minimize their exposure to risks.
A bankruptcy filing generally does not constitute a tenant’s default or grounds for eviction, nor does it terminate the landlord-tenant relationship or the landlord’s ability to receive rental income. Rather, bankruptcies typically impose an “automatic stay” that prohibits landlords from pursuing collections or eviction action against the filing tenants. However, depending on the timing of the filing, the tenant’s payment history, and its intent to reorganize and/or continue occupying the rental space, landlords may have an opportunity for to receive relief.
For example, if a lease is in default prior a tenant’s bankruptcy filing, the landlord may file a motion to receive relief from the automatic stay and evict the tenant or enter into a new lease with new terms that are beneficial to the landlord over the life of the rental agreement. After the tenant files for bankruptcy, it must continue to carry out its lease obligations, including the payment of rent, and either assume or reject the lease. Assuming a lease requires tenants to remedy any pre- or post-filing defaults and provide financial assurances it will perform under the lease going forward. If a tenant rejects a lease, the landlord may have a claim for damages flowing from that rejection, subject to statutory caps.
Navigating successfully through these unique challenges related to owning and investing in commercial property requires the guidance of experienced real estate professionals with a broad range of legal and tax resources.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.
Posted on September 17, 2020
Not all triple net leases are created equal. Rather, investors purchasing commercial property with NNN tenants already in place should take the time to review each individual lease agreement to understand from the onset all the benefits, restrictions and obligations they will inherit after the purchase closes.
For example, investors should read the fine print to confirm that the responsibilities for insuring the property and paying insurance premiums, property taxes, utilities and costs for general repairs and maintenance all falls to the tenants. It is not uncommon for an agreement to carve out exceptions for these items. For example, a lease agreement may require a landlord to cover all costs associated with a building’s structural repairs, such as replacing a roof, or share with the tenant the costs of certain other expenses. As a final reminder, investors should review lease agreements to identify if they contain escalation clauses, or reset clauses, and understand how these potential rent increases can affect them and their tenants over the life of the lease.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.
Posted on September 11, 2020
MIAMI – Sept. 11, 2020 – Orion Real Estate Group today announced a $61 million acquisition as part of its Orion Real Estate Opportunities Fund 2019 bringing total investments through the fund to nearly $100 million. OREOF19 was created to acquire value-add net lease property across the country.
Today’s $61 million acquisition consists of 26 properties in 16 states. Tenants include CVS, Tractor Supply, Office Depot, Fresenius Health Care and Bridgestone Tire.
“This was a strategic acquisition for Orion Real Estate Group to expand our single tenant net lease portfolio throughout the country with tenants that are considered essential businesses, commented Orion President Kevin Sanz. “These are tenants that have continued to thrive during the pandemic, and we are excited to add them to our portfolio.”
The company holds property in more than 20 states and four Canadian provinces.
About Orion Real Estate Group
Orion Real Estate Group provides commercial real estate services to investment clients around the world. Since its founding in 1978, the firm has been involved in more than $4 billion in transactions and holds a portfolio exceeding $800 million.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, visit www.orionmiami.com.
-end-
Posted on September 09, 2020
Restaurants did a good job flexing their creativity and adapting to the pandemic lockdowns and social distancing measures. However, even as these businesses begin to reopen for inside dining, a significant number of consumers are continuing to exercise caution and opt for the convenience, speed and contactless features of order-ahead and drive-through service. In fact, according to a recent consumer survey on the health crisis’s impact on consumer behavior, an overwhelming majority of respondents are increasingly picking up family meals from restaurants that offer drive-through or counter pick-up services. In addition, brands that offer drive-through services and are therefore more apt to be located on an outparcel, are outselling their competitors located in strip centers. Not only is this good for many quick-serve brands but also the investors who own the property and/or the land on which those establishments sit.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.
Posted on September 02, 2020
ORLANDO – Sept. 2, 2020 – Limestone Asset Management, an affiliate of Orion Real Estate Group, has purchased seven outparcels of the Millenia Mall in Orlando, Fl, for $22.7 million. The acquisition includes more than 100,000 square feet of commercial and office space. Long-term tenants include Olive Garden, BJ’s Brewhouse, Old Navy, West Elm, Ethan Allen, DSW and Ingenus Pharmaceuticals.
Ibrahim Al-Rashid, chairman of Limestone commented, “Millenia is an ideal addition to our portfolio. Commercial and office properties continue to be a focus of our acquisition efforts and we believe in the long-term growth story in Florida.”
Limestone currently holds $200 million in commercial and mixed-use real estate located across the United States. The Miami-based company uses Orion Real Estate Group’s expertise to complete all North America-based transactions.
Orion Real Estate Group
Orion Real Estate Group provides commercial real estate services to investment clients around the world. Since its founding in 1978, the firm has been involved in more than $4 billion in transactions and holds a portfolio exceeding $800 million.
Limestone Asset Management
Miami-based Limestone Asset Management was founded in 2010 and invests in and acquires real estate properties over all asset classes throughout North America. Its holdings exceed $200 million.
-end-
Posted on August 25, 2020
Savvy investors recognize the inherent benefits of triple net lease properties (NNN), in which tenants pay rent and all the other expenses of managing that property, including utilities, real estate taxes, insurance and costs for repairs and maintenance. Without these responsibilities, investors can pretty much sit back and collect a steady stream of passive rental income while building equity in those properties. However, not all NNN properties are created equal. Investors should still conduct thorough due diligence and focus on the following three factors:
- Geographic Location. Look for properties located in cities with a strong or strengthening economies, including positive employment levels and population growth?
- Physical Location. You want a property with good traffic, easy accessibility and a mix of different types of tenants, including a strong anchor that is either within the property or very close to it.
- Tenant Mix. If the COVID-19 pandemic has taught us just one lesson it would be that properties with essential businesses, such as grocery stores, pharmacies, hardware store, discount retailers and medical offices, will always attract consumers. Often, brands with a national presence with drive more foot traffic than mom and pop stores
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.
