Triple Net – 1147 11th St, Manhattan Beach

Triple Net – 1147 11th St, Manhattan Beach

Client Goals: Owner actively managed her 4-unit property in Manhattan Beach; she was hoping to sell so that she could alleviate the management burden associated with her multifamily property. The Seller originally wanted to cash out, but after learning of high capital gain tax consequences, she agreed a 1031 Exchange was her best option. Why Lyon Stahl: Our client was reluctant to exchange due to her concerns with identifying and closing on an upleg within the narrow time deadlines. We walked her through our proactive and multi-faceted approach to the exchange process but she was still opposed to the idea of managing another property. We discussed the potential benefits of a Net Leased Investment for her unique situation; exchanging into this type of deal would allow her to avoid paying capital gain taxes and forgo any landlord responsibilities. She ultimately chose to work with Lyon | Stahl due to our expertise in the 1031 exchange process and large inventory of Triple Net Investment Opportunities. Process: Our client had specific criteria for the ideal Triple Net Investment – the tenant had to be a credit-worthy national retailer with a corporate guaranteed lease. While in escrow with her 4-unit building, we wrote several competitive offers on NNN deals that aligned with our client’s buy-side specifications and investment goals. Outcome: Successfully exchanged into a Del Taco in Moreno Valley, CA. This management-free investment was an absolute NNN deal with all expenses paid by the tenant and no landlord responsibilities. The lease was corporate guaranteed and included scheduled increases to hedge against inflation and ensure steady NOI growth.