Finding 1031 investors

[Adam C.]

I'm an associate at an investment sales firm in Dallas.  A long-time client of ours has asked us to sell his Walgreens in Memphis, TN.  I know that a large portion of people that buy these are 1031 buyers, and many are from CA.  Other than contacting another brokerage service, what's the best way to get the deal in front of some 1031 buyers, without going to market?  Thanks.

[Joel Owens]

Hi Adam,

You need to DEFINE the terms of the Walgreens lease and what cap rate the seller is trying to get.

Memphis isn't Nashville for quality so there is a basis point spread on selling.

Length of term left on primary lease, any rental increase in option periods, NNN or NN, ZCF ( zero cash flow property ), corner location and cars per day, if any store sales are reported for that location per lease requirements, is there a CPI cap in the lease, is the store 24 hours, sales percentage to rent ratio, size and shape of parcel, median household income, population growth percentage, etc.

All of these items and more will dictate cap rate and who the buyers are.

You can present it to Tim Marshall at 1031 Exchange. He has a lot of 1031 clients. You can call around to other 1031 companies to see if they have a client interested.

Why do you not want to market it?? Are you trying to double end the deal??