- National Retail Properties Services, Inc. (NNN) will fund
100% of all
project costs on a non-recourse basis.
- NNN and Developer will form an LLC for purposes of holding
title and developing the project. The LLC structure also enables
Developer to qualify for capital gains treatment upon sale of
the project.
- Developer will develop the project pursuant to an Operating
and Development Agreement as an independent contractor.
- Developer may take reasonable development fees and leasing commissions.
- NNN funding fee is 2% of total project costs.
- NNN interest carry/preferred return is the greater of prime
plus 0.25% or 7%.
- Developer guarantees the budget and is responsible for cost
overruns. However, NNN will fund cost overruns to the extent
that the budget contingency is exhausted. In such case, such overruns
will then be reflected as a debit against Developer's profit share
at the sale.
- Conversely, Developer is entitled to any cost savings achieved
by completing the project under budget.
- Exit strategy is a market sale at project stabilization.
- Profit split is negotiated and depends upon responsibilities,
risk and contributions; typically 50/50.
Product Types:
Grocery-anchored neighborhood or community shopping centers,
select power centers (preferably with a grocery component) or investment-grade,
freestanding, triple-net build-to-suits.
Captial Placement Amount:
$2 Million to $20 Million.
The Company
National Retail Properties, Inc. (NYSE: NNN), an equity real estate
investment trust, invests in high-quality, freestanding, single-tenant
properties subject to long-term, net leases.
The company currently has more than $1 billion in assets and owns,
either directly or through investment interests, 350 properties
in 39 states with total gross leasable area of approximately 6.7
million square feet. These properties are leased to 111 tenants
in 39 lines of trade.
The company maintains an investment-grade debt rating with the three
major rating agencies, Standard & Poor’s, Moody’s
and Fitch IBCA, as well as credit facilities of $250 million, which
provide immediate access to capital for acquisitions.
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