hewlettpackard verizon verizon walgreens walgreens wellsfargo appliedmaterials scp theseasons

Beginning in 1998 and continuing to the present, Coulter Adams has managed a real estate portfolio consisting of commercial, industrial, and R & D properties in California, Idaho, Iowa, Utah, and North Carolina. In addition to the above, the portfolio held title to a 120 unit multi-family apartment complex for which Coulter was the Managing Partner. As Managing Partner Coulter Adams has worked with such tenants as Wells Fargo Bank, Hewlett-Packard, Applied Materials, SCP Global Technologies, FedEx, Roche Biomedical, MCI, GAF, and Xpedx. In this role Coulter has been responsible for strategic investment planning, budget forecasting, calculating rates of return, and the negotiation of refinancing and and re-leasing. As Managing Partner Coulter also was responsible for the coordination of all tenant improvements.

What is a Triple Net Leased Investment ?

A Triple Net Lease, also referred to as a Net/Net/Net lease, an Absolute Net lease, or a NNN  lease, referrs to a lease agreement wherein the tenant in addition to base rent is obligated to pay for real estate taxes, maintenance, insurance, utilities, and landscaping costs if any. In a Triple Net Lease rents on a per sq. ft. basis, are typically lower than a standard “gross rent” lease. In a gross rent lease the tenant normally pays a base rent and often, common area maintenance fees only. This leaves the landlord obligated for all operating costs, including taxes, maintenance, management, utilities etc.
NNN leased properties are most often single-tenant commercial, industrial, or office properties with long term leases. Commercial properties of this type are frequently leased to national or regional retailers such as Walgreen’s Drugstores, CVS Drugstores, Wal-Mart, Safeway, Family Dollar, Home Depot, Verizon Wireless, Costco, and FedEx.

Leases are most often for 10 years, often for 15 years and frequently 20 years. When contemplating an investment of this length the main derivative of value is not so much the real estate itself but instead the uninterrupted cash flow created by what’s often an referred to as an “investment grade” tenant. In this economic climate it’s essential the investor select not only a first rate location, but a tenant with staying power.  It’s becoming apparent that “value” retailers like Wal-Mart, Costco, Family Dollar, and Dollar General are succeeding where others may fail. In addition, it’s generally agreed that health care related retailers like Walgreens, Rite Aid, and CVS Drugstores are likely to be in position to take advantage of the needs of the expanding segment of the aging population.

In addition to Absolute NNN leases there are what’s known as Modified NNN leases , also known as Double Net or NN leases. These leases transfer most but not all, the financial responsibility to the tenant. Most NN or modified NNN leases obligate the landlord to maintain the roof and or exterior walls of the property. All other costs are conveyed to the tenant. Anything less than a Double Net (NN) lease requires even more of the cost of ownership to be paid by the landlord. In short, a NNN lease can be a desirable investment for an the investor seeking little or no management while at the same time ensuring the investor a stable long-term income stream.

Why don’t most corporations own their own buildings?

Probably the question most frequently asked question. The primary reason is that for large companies to invest what would be significant capital in real estate assets, simply does not make good business sense. If FedEx, Walgreens, Starbucks, or any of the other nationally recognized companies owned the thousands of locations they occupy their balance sheets would be weighed disproportionately with real estate. In doing so they’d be required to take on significant amounts of debt and would be committing capital that could otherwise be used to expand their “core” businesses. Additional considerations include their ability to: (a) write off 100% of the rent as a cost of operations, and (b) remain fluid in their business strategies by not having to buy and sell properties as their business needs change and markets evolve.

What about Financing?

In this economic climate the securing of financing is somewhat more challenging.  Lenders however are currently loaning up to 75% of the value of a property at rates never before seen. Loan rates are typically fixed for a period of 10 years with an amortization period of between 20-30 years. Given this fact Cash-on-Cash returns of 8% and up, are achievable.

Coulter Adams
Coulter Adams Strategic Investments
19215 B-4 Ranch Rd.
Nevada City, CA, 95959 USA
Work:530.265.4980
Fax:530.265.3363
Cell:510.914.7776

Just Opened / New Walgreens in an Exceptional N. Ca. Location

New Walgreens in an exceptional N. Ca. foothills setting.  14,468 sq ft store on 1.9 acres. Brand new construction, with an Absolute Net Walgreens lease. With a prominent location and numerous aesthetic and architectural features including dormer windows, native stone work, and extensive landscaping, this store in the heart of Northern California’s historic Gold Rush Country, is a pride-of-ownership trophy asset. It’s location at a high-traffic, signalized intersection enables this Walgreens to out position all other drugstores in this market.

Lease:  25 years

NOI:  $795,000

Asking:  $13,250,000

P/ Sq Ft   $915

Cap:  6%

Top Producing Verizon Wireless Store / A #1 Location / Jacksonville, NC

NEW to the market….. Freestanding retail outlet NNN leased to Verizon Wireless. This store is by Verizon’s own account, one of their top producing locations in the entire region. The store is located adjacent to a large regional mall with tenants such as Best Buy, Old Navy, Sam Club, Wal-Mart and Staples. Jacksonville is the home to Camp Lejeune, the largest Marine Corps Base on the East Coast and contributes over $3,000,000,000 to the local economy annually. Subject property is located less than five miles from the main gate to the base.

Building Size 4,500 sq.  ft

1.14 + – Acres

8.8% rent bump in 2016

Cap Rate 7.75%
Price $2,613,000

Contact:
Coulter Adams
Coulter Adams Strategic Investments
coulter@b-4ranch.com
510.914.7776
CA DRE Lic # 01230376



For Sale / 61,000 sq. ft. Hi-Tech R & D Building with Class 10 Clean Room / Boise, ID.

Property includes:  a 3,000 + – sq ft  Class #10 Clean Room,  18,000 + – sq ft of office space,  backup generator power, (4) dock high loading doors,  30,000 sq. ft of warehouse space and a rail spur. The building can be delivered with or without the clean room and is available for lease or sale.

For a complete marketing package contact

Jake Tucker

Colliers Intl Real Estate

Boise, Id.

208.345.9000

Buentgen Gary
Intermountain Commercial Real Estate

SOLD / FedEx @ 8.0% CAP w/ CORP. GUARANTY

The property is leased to Federal Express Corporation., dba FedEx Express. There is a 10-year double-net lease with five-years remaining. The lease also provides for two, five-year renewal options at fair market rent.

Price :$2,360,000

Cap 8.0%

Size 38,360 sq ft

Built 1996

NOI   $188,731

SOLD !!! FedEx Ground / Sonoma Valley, Ca.

New FedEx facility in Windsor, CA FedEx Ground has a right to expand the building by up to 13,260 square feet at

any time during the lease term. Landlord is not obligated to pay for expansion.

The tenant has the right to forego the expansion, or build the expansion space at no additional cost to the landlord. If

the tenant builds the expansion, the rent would not increase, but the landlord would own the expansion improvements (excluding the tenant’s own fixtures).

FEDEX GROUND is the second-largest of four business segments within FEDEX CORPORATION. Ground handles small package ground delivery, small parcel

consolidation, and contract logistics.

10 yr lease

8 % cap rate

Price $13,100,000

SOLD / FedEx Dubois, PA. @ an 8% Cap Rate !! Offered at $2,763,000

This is a premier opportunity for an investor to acquire a well located, low maintenance property, leased to a credit rated tenant on a brand new 10-year net lease. The property is offered at a price of $2,763,000, which represents a high 8.0% CAP rate and a price of $101 per square foot. This 27,327 SF building was recently completed (11/08) and has a built in expansion capability of 7,313 square feet.
Dubois is strategically located south of Buffalo, New York, east of Pittsburgh, Pennsylvania, and west of Harrisburg, Pennsylvania, roughly 2.5 hours driving time from all three cities. Dubois serves as the region’ s transportation hub, with easy access to Interstate 80, Routes 219, 119, 322, and access to rail freight lines. Extremely accessible transportation routes, low labor costs, and affordable housing make Dubois an excellent location for FedEx to do business.
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