Service
NNN Replacement Sourcing
Identify single tenant NNN assets nationwide to match cap rate and credit goals.
What This Includes
Our NNN Replacement Sourcing service connects investors with triple net lease commercial real estate opportunities that serve as replacement property in 1031 exchanges. Triple net lease structures represent one of the most stable income-producing investment categories available, offering passive ownership with corporate-guaranteed tenants.
Triple net lease properties operate under arrangements where the tenant assumes responsibility for net property taxes, net insurance premiums, and net maintenance costs, in addition to base rent and most operating expenses. This structure creates truly hands-off ownership for Albuquerque, NM investors seeking income without active property management duties.
There are two primary triple net lease categories: absolute NNN leases and standard NNN leases. Absolute NNN leases represent the most comprehensive structure, with tenants covering all expenses including capital expenditures, providing investors with zero operational responsibilities. Standard NNN leases typically require tenants to cover taxes, insurance, and common area maintenance, though landlords may retain some limited responsibilities such as roof, structure, or parking lot maintenance depending on lease terms.
We coordinate with Qualified Intermediaries and qualified escrow companies to source triple net lease properties nationwide that match your investment parameters. Our process includes tenant credit analysis, lease structure evaluation, cap rate assessment, location due diligence, and acquisition coordination. We ensure properties are properly identified within the 45-day deadline and that acquisitions close within the 180-day period, managing all coordination throughout the exchange process.
Example of the type of engagement we can handle
Example: NNN Replacement Sourcing in Albuquerque, NM
- Scope
- Source single-tenant NNN replacement properties nationwide matching investor's cap rate and credit requirements, identify properties within 45-day deadline, and coordinate acquisition within 180-day period.
- Client Situation
- Client sold $3 million property and wanted passive NNN replacement property with investment-grade tenant, 5.5%+ cap rate, and preferred locations in Southwest or Southeast. Needed properties identified quickly to meet 45-day deadline.
- Our Approach
- Sourced NNN properties nationwide matching criteria, evaluated tenant credit and lease terms, analyzed cap rates and locations, presented qualified options to client, helped identify two NNN properties meeting requirements, coordinated with Qualified Intermediary for proper identification, and managed acquisition timeline to meet 180-day deadline.
- Expected Outcome
- Client successfully identified and acquired two NNN properties totaling $3 million with investment-grade tenants, achieved 5.6% blended cap rate, maintained full exchange eligibility with no boot, and completed exchange within all IRS deadlines.
Contact us to discuss your situation in Albuquerque, NM. We can share references upon request.
FAQs about NNN Replacement Sourcing
What is a triple net lease property?
A triple net lease property is a single-tenant commercial real estate asset where the tenant contractually agrees to pay net property taxes, net insurance costs, and net maintenance expenses, along with base rent and utilities. This structure provides Albuquerque, NM investors with passive income and minimal landlord responsibilities. Triple net lease properties typically feature long-term corporate-guaranteed leases with creditworthy tenants and qualify as like-kind replacement property for 1031 exchanges. We help Albuquerque, NM investors understand triple net lease structures and identify properties that align with their investment objectives.
What is the difference between absolute NNN and regular NNN leases?
Absolute NNN leases require tenants to cover all property expenses including capital expenditures, providing Albuquerque, NM investors with complete passive ownership and zero operational responsibilities. Regular NNN leases typically require tenants to pay taxes, insurance, and common area maintenance, but may include lease provisions requiring landlords to cover certain expenses such as roof repairs, structural maintenance, or parking lot upkeep. Both structures offer stable income, though absolute NNN leases provide the most comprehensive hands-off ownership. We help Albuquerque, NM investors evaluate lease structures and source properties that match their desired level of involvement.
What types of businesses typically use triple net leases?
Triple net lease tenants commonly include essential retailers, dollar stores, quick-service restaurants, convenience stores with gas stations, pharmacies, medical clinics, auto parts retailers, and other recession-resistant businesses with investment-grade credit ratings. These tenants prefer triple net lease structures because they maintain full control over brand presentation and property operations. Albuquerque, NM investors benefit from corporate-guaranteed leases with proven tenants that have demonstrated profitability even during challenging economic periods. We help Albuquerque, NM investors identify triple net lease properties with tenants that match their credit quality and industry preferences.
What are the benefits of triple net lease investments?
Triple net lease properties offer Albuquerque, NM investors several advantages including passive income with minimal management requirements, predictable monthly cash flow with periodic rent escalations, reduced default risk due to corporate-guaranteed leases, long-term income stability with 10 to 20-plus year lease terms, geographic diversification opportunities, and tax benefits through 1031 exchanges and cost segregation depreciation. These properties provide tangible assets that can be leveraged and offer strong resale value. We help Albuquerque, NM investors understand how triple net lease investments can fit into their portfolio strategy and source properties that meet their financial and lifestyle goals.
What identification rules apply to triple net lease replacement properties?
Triple net lease replacement properties for Albuquerque, NM investors must comply with standard IRS identification requirements—specific properties must be identified in writing within 45 days of relinquished property closing and acquired within 180 days. Triple net lease properties are identified by street address and legal description, consistent with other replacement property types. We help Albuquerque, NM investors properly identify triple net lease properties and ensure compliance with all identification requirements throughout the exchange process.
Are there any drawbacks to triple net lease investments?
Triple net lease properties may not appeal to Albuquerque, NM investors who prefer active property management, as these structures provide minimal hands-on involvement. Additionally, rent amounts are contractually fixed for the lease term, though many leases include periodic escalation clauses. Some standard NNN leases may require landlords to cover certain expenses such as roof or structural repairs. Despite these considerations, triple net lease properties offer compelling benefits including passive income, credit tenant security, and long-term stability. We help Albuquerque, NM investors evaluate whether triple net lease investments align with their investment philosophy and risk tolerance.
Next Step
Discuss NNN Replacement Sourcing
Coordinate nnn replacement sourcing with specialists who understand Albuquerque, NM deadlines and national inventory.