NNN + MF lease type?

Hi all - I'm underwriting a property that consists of ground floor retail, small amount of office and a large parking garage. Several of the leases have a "NNN + MF" lease type. Any insights as to what this means/how it impacts the way I should think about this deal? I see MF and just think of Multifamily, but that can't be the case here.

This isn't very high-stakes or anything, I'm really just UW this to get practice with parking garages, which is something we haven't done before but want to explore. Any thoughts you guys have on this (or garages in general) are welcome!

Comments (5)

2mo
UndercoverNerd, what's your opinion? Comment below:

Thanks for your help! Yea it seems that way based on the ARGUS. There's a NNN CAM pool that everyone in the non-garage portions pay (the garage space itself is leased to an operator already) and then the rest is all modified with certain exclusions depending on tenant group.

Still not sure what the MF acronym is supposed to stand for, tho. I have a couple websites that compiled tons of RE/financial acronyms but no insight as to what MF means. Maybe refers to some modifications to PRS, because every tenants allocation is hard-coded in the broker model we got.

Most Helpful
2mo
value-add, what's your opinion? Comment below:

MF means Management Fee. Usually this fee is a percentage (typically 3-4%) of the effective gross income at a property and pays a property manager or covers overhead and operations for a property owner with in house management. Not all tenants reimburse for this, though those are typically your big box retailers or national tenants with outstanding credit with leverage in lease negotiations. If tenants aren't reimbursing for this currently then there is a slight value-add play for the NOI to convert these leases to NNN + Management Fee.

2mo
itsanumbersgame, what's your opinion? Comment below:

Nemo sapiente et inventore est assumenda. Saepe voluptates ducimus quis. Possimus voluptas fuga excepturi nisi vitae odio. Voluptates tempora voluptas veritatis tempora.

Dolores libero vel nam nostrum sed et saepe. Iusto reprehenderit repellendus qui at et eius.

Sit sunt necessitatibus dolorem nulla facilis nostrum sint et. Sunt nemo quo laborum quae quos. Qui dolore facere harum sed omnis.

Quo qui autem dolores rerum quae. Quia sint id adipisci beatae. Aut totam repellat aut quis autem rerum quasi neque. Exercitationem qui officia et. Eum autem ut quaerat iusto animi delectus.

Start Discussion

Career Advancement Opportunities

December 2022 Investment Banking

  • Jefferies & Company (▲08) 99.6%
  • Lincoln International (= =) 99.3%
  • Financial Technology Partners (+ +) 98.9%
  • Evercore (▽01) 98.5%
  • Bank of America Merrill Lynch (▲01) 98.2%

Overall Employee Satisfaction

December 2022 Investment Banking

  • PJT Partners (= =) 99.6%
  • Evercore (▲02) 99.3%
  • Greenhill (▲05) 98.9%
  • Canaccord Genuity (▲15) 98.5%
  • William Blair (= =) 98.1%

Professional Growth Opportunities

December 2022 Investment Banking

  • PwC Corporate Finance (▲14) 99.6%
  • Jefferies & Company (▲05) 99.3%
  • Lincoln International (▲02) 98.9%
  • William Blair (▽02) 98.5%
  • Evercore (▽01) 98.2%

Total Avg Compensation

December 2022 Investment Banking

  • Director/MD (10) $613
  • Vice President (38) $392
  • Associates (220) $255
  • 2nd Year Analyst (139) $163
  • 3rd+ Year Analyst (19) $160
  • 1st Year Analyst (466) $153
  • Intern/Summer Associate (88) $151
  • Intern/Summer Analyst (337) $92