Absolute NNN with 9.5% Cap - How is it on the market?

[Spencer Carpenter]

I found a 9.5% Cap Absolute NNN for sale. The tenant is "top tier" according to the listing. "The tenant is subject to a 5 year absolute NNN lease with zero landlord obligations. The lease calls for annual 2% rental increases and two, 5 year options to renew."

My question is: how did this make it to market? Most commercial investors I know look for 8%+ and with 0 landlord responsibilities, it feels like the type of thing an investor would jump on quickly. Is there something more I should be looking at?

[Joe Villeneuve]

Originally posted by @Spencer Carpenter:

It doesn't say how long into the lease it is.

It's an office building with a tenant in A/V industry.

Originally posted by @Joe Villeneuve:

How much of the original lease is left?

If they are near the end of the original lease, have they executed the first (or next) option?

What type of building (i.e...office, stand alone, bank, etc...) and what/who is the franchise/tenant?

Where the tenant is in the lease/extensions will probably be where you'll find your answer.  If you want to know,...find out.