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Updated about 5 years ago,

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2,259
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879
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Hai Loc
  • Specialist
  • Toronto, Ontario
879
Votes |
2,259
Posts

Exit Strategy on NNN under 7 years left on lease

Hai Loc
  • Specialist
  • Toronto, Ontario
Posted

I always see these NNN properties on loopnet that have 6-7 years left on the lease.

You would think Walgreens, CVS or Dollar General to be pretty established especially with territorial restrictions 

The cap rate seems juicy but I am sure it is set at where it is based on the risk. 

The building is almost reaching 20 years old so I guess my ultimate question is 

Do these sell? If someone was to buy I would assume there initial strategy would be to try and renew the lease options but what would be a plan B exit strategy? I am thinking redevelop? 

I would like to hear from the experts

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