Absolute NNN Diligence Question

[Benjamin Aaker]

Questions for commercial investors out there:
1. When underwriting an building purchase with attached absolute NNN lease, what diligence items do you typically request?
2. Do these items change for you if the property was recently built and has a long-term lease vs an older property with a 'seasoned' lease?
3. Do these change based on the credit history of the tenant?
Thanks for your help!

[Joseph Gozlan]

One of the most critical items to review is the lease. How many more years left, renewal options, responsibilities of maintenance, rent increases, etc. 

Another important thing is to evaluate the tenant’s financial strength. 

These are the basis to the NNN value in a deal like this.

The physical building should be inspected as of you would inspect it even if it's not a NNN deal.