Owning a Tenant in Common Interest

The Rationale for exchanging into an investment grade property

Exchangers are leaving management headaches behind and transitioning into management free commercial properties.

Commercial oriented investment and income property has an enviable track record for investors seeking to benefit from leverage, tax shelterd income, depreciation and above average equity growth.

And with the ability to utilize a 1031 exchange to acquire such an interest tax free, it is no surprise that these professionally managed (net leased) or tenant managed (triple net leased) properties are among the most active of investment property categories.

Credit Tenant

There's nothing better than having a credit tenant that pays off your property for you.

Millcreek Commercial properties are typically leased to nationally active corporate tenants with leases in the fifteen to twenty year range.

There are times where properties are owned by regional or individual owners. When underwriting an individual property to determine the quality of the tenant, Millcreek will always provide any Exchanger with a copy of the lease for their review.

Long Term Lease

Long term leases are good for the tenant because it provides the stability associated with a fixed expense. It is great for owners because it provides reliable cash flow.

Millcreek Commercial properties are typically leased to corporate tenants with leases in the fifteen to twenty year range.

In the cases where Millcreek is constructing the property it is not uncommon to see leases as long as thirty years, with regular bumps built into the lease for rent increases.

Cash Flow and Tax Benefits

Sophisticated investors own commercial property for cash flow and extended tax benefits such as interest write-off and depreciation.

The typical cash flow associated with a given property will be based upon the location and condition of the property, the type of lease and the relative responsinilities of the tenant vis a vis maintenance, taxes and insurance, and the length of the lease.

In addition, the quality of the tenant will affect rental rates and cash flow with most Millcreek proprties generating monthly cash on cash returns between five percent and six and one quarter percent.

Owning a piece of an investment grade commercial property

Your credit tenant manages your triple net leased property
You receive your share of the rents every month
As a ratable owner you receive tax benefits like depreciation
Your property increases in value over time
You can sell or 1031 exchange in or out... any time you like

View Sample Properties

You own it with others

A tenant in common interest

Together, a few real estate investors pool their cash to buy an investment grade property which is leased to and managed by a credit tenant. This enables acquiring a property together, which they could not afford individually.

Long term leases

You receive rental income monthly

Because the asset is an income producing commercial property each individual owner receives their ratable share of the rents every month. This dynamic, together with management by the tenant is where the term 'mailbox money' was originated.

A wealth building legacy

Equity growth and tax benefits too

By having the tenant responsible for all maintenance, insurance, taxes and rent, these properties tend to be rented by well established national businesses which encourages stability and long term income tax sheltering and equity growth.

Buying and benefiting together, what you couldn't each afford individually

Tenant in Common ownership defined

Tenant in common may sound like a legal term that investment real estate insiders throw around casually, but it's actually an important agreement between co-owners of real estate, especially income producing property. It is the one type of arrangement that can develop when multiple investors decide to buy real estate together.

Now for some people, buying real estate as a co-owners with others may seem ludicrous. However, within an ownership sturucture of an investment grade property which is either professionally managed or managed by a credit tenant, the ability for an average investor to benefit from the traditonal cash flow and tax benefits of commercial property can serve as a great opportunity with a serious payoff.

Letting your tenant pay your taxes, insurance and property maintenance

Triple Net Leased Property Defined

A triple net lease is an agreement between a property owner and a tenant where the tenant pays property taxes, insurance premiums, and maintenance upkeep and repairs, in addition to a monthly rental fee of the building or space.

Most triple net lease agreements are structured to offer long-term tenant occupancy upwards of 20 to 30 years. This is advantageous for owners because it removes the risk and losses of a property sitting vacant between tenants.

A triple net lease can also provide a consistent source of income for the property owners. This type of lease is structured to include a consistent amount of rent each month over an extended period of time. Plus, the majority of unknown or catastrophic property expenses will be passed on to the tenant, helping to protect any risks in the investment.

Monthly Cash Flow

You'll be a tenant in common owner who receives your share of the rents every month.

Management Free

All Millcreek Commercial properties are either professionally managed or tenant managed.

Tax Benefits

You will receive your share of ratable tax benefits including depreciation, or interest.

Long Term Leases

All Millcreek Commercial properties are long term leased investments to credit tenants.

Credit Tenants

The tenant that occupies and often manages your property is usually a national corporation.

Solid Equity Growth

Millcreek Commercial properties are located throughout the US and often in in growth markets.

Owning a Commercial Property Interest

Create a legacy of wealth with tax advantaged commercial property.

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