Single Tenant Net Lease Exit Opps

Hi guys,

Just wondering what your thoughts are on single-tenant net lease sales. This would be for a group in a large city with significant flow and I would be coming in as an analyst. Since I am not too familiar with single-tenant transactions, i assume the modeling is much more straightforward. Would this hurt exit opportunities and would it be easy to transition other asset classes or would i be pigeon holed in these?

Thanks for any insight and please correct me if I am wrong on anything.

Comments (12)

Jul 11, 2019

modeling will be almost non-existent, can still work on some interesting transactions depending on team. I was an analyst and got a role at a developer and the analyst that came before me got a job at very small value add fund

Jul 12, 2019

Huh, odd that there is not much modeling as the information i received from HR and the manager stated otherwise. They may just be talking up the modeling depth of the job. This position also features heavy advisory work in addition to capital markets brokerage which is interesting.

Thanks for your insight. Did you and the person you know transfer over to a net-lease focused developer/fund or do you guys do all kinds of investments?


Jul 12, 2019

Different places might be different but there just wasn't a whole lot out there to model, not hard to forcast NOI when there is only one tenant and they have a long term lease where they cover all expenses.

the developer I'm at covers all asset classes, other guy does multi tenant retail. If you're focused on exiting single tenant net lease won't as good as other areas but opportunities will still be there.

Jul 12, 2019

I had a friend that worked on a NNN focused brokerage team and he eventually left for analyst role at a middle market investment bank. His role on the team was analyzing company balance sheets / income statements and drafting summaries in OM, communicating financial health to guide pricing and answering investor questions. Spun his experience in looking at / understanding company financials whichis bviously important for single tenant NNN lease deals and transferable to banking. Worked on his modeling skills outside of day job.

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Jul 12, 2019

Modeling is non-existent.. on a pure NNN basis, purchase price = (base rent /cap rate).

Jul 12, 2019

There's some modeling work that will be done on deals that have some hair

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Jul 13, 2019

Spent a year as an associate for a STNL retail team, brokered my own deals and also did all the financial analysis for my senior's. The modeling was virtually non existent, we did a few shopping centers that gave me a little modeling experience, but mostly just analyzing a company's financial health.

Exit opps are what you make them. I networked and did online modeling classes on the side and now I'm doing Acquisitions at a reit doing mostly MF and a pretty substantial amount of modeling.

Jul 14, 2019

With respect to analytical depth in the role... you'll find two completely binary outcomes (i.e. working with Guy Ponticello and doing deals with WP Carey, or working at M&M/Matthews/Sands Investment group and selling Burger Kings to HNW investors). Who is their client base comprised of?

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Jul 22, 2019

It is heavily more of the first type.

Jul 28, 2019

What is the sector? Industrial, Retail, suburban office? Is the role as a brokerage analyst? Or owner investment analyst?

At a brokerage shop, you could get experience understanding all the questions buyers/buyer's lender ask and that would make you better at doing DD on future buyer side.

Totally different experience at the operator side.

Aug 3, 2019
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