Leveraging the greatest wealth building tool in the Internal Revenue Code, Section 1031.
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.
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.
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.
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.
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.
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.
Millcreek Commercial properties are located throughout the US and often in in growth markets.