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Updated about 5 years ago,
Exit Strategy on NNN under 7 years left on lease
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