1031 NNN Properties

1031 exchanges can be used to make many different kinds of investments. One type of investment that has appeal to those who want cash flow with minimal management hassles is the NNN, or triple net leased, property. The owner gets monthly rental income but is not subject to many of the expenses of property ownership.

In a NNN investment, the lessee (usually a corporate tenant) pays insurance, maintenance, and taxes. The tenant also assumes all management responsibilities. The monthly rental income is thus "net" of all expenses.

In most cases, NNN properties are single-tenant properties. Certain large chains like Jiffy Lube, Walgreens or Family Dollar often prefer triple net leased arrangements because they have the control associated with ownership without the capital requirements. In general, these kinds of corporate tenants will operate under long-term leases. These types of investments often appeal to those seeking income over property appreciation. NNN properties can also represent relatively low-risk investments when major corporate tenants are involved.

TM 1031 Exchange maintains a nationwide database of investment-grade properties suitable for 1031 exchanges. To view NNN properties on our website, click on the link to Net-Leased Investments. For more information on a particular property, click on the applicable link or call our toll free number 1-877-4TM-1031. You can also send us an email here info@tm1031exchange.com.