Blog / Triple Net Property

This section features past triple net investment offering recommendations we've made.


Cole Credit Property Trust 3

[This offering is fully subscribed. This is provided as an example of one of the offerings our affiliates have recommended to clients in the past.]

Description:

This was a non-traded REIT focused solely on the acquisition, management, and strategic disposition of long-term, net-leased real estate backed by creditworthy tenants. At the closing of the capital raise, the REIT had raised over $3.5 Billion and had acquired over 1,000 net-leased properties. The REIT paid a 6.5% annualized cash flow on a monthly basis that was approximately 32% tax-deferred due to depreciation. The credit quality of the diversified portfolio, coupled with longer-term leases, provided our clients with significant downside protection and a reliable income.


Goals:

  1. Consistent longer-term income backed by strong corporate and investment grade credit
  2. Acquisition of diverse industrial, retail, and single-tenant net-leased (NN & NNN) properties
  3. Significant tax-savings from tax deferral on 32% of the income, based on depreciation allowance
  4. Potential long-term upside by increasing in income
  5. Potential liquidity event, earning a premium for REIT shareholders by listing the REIT on a public market


Status:

In June of 2013, Cole Credit Capital Trust 3 was acquired for a significant premium by American Realty Capital Properties (ARCP), making ARCP the largest net-leased REIT in the world.


Annualized Cash Flow Return:

Year20122013
Projected6.50%6.50%
Actual6.50%7.00%
Variance0.00%+7.69%

Total Return (Excluding Cash Flow):

A range of 20--40%, in addition to cash flow, depending on when clients sold their individual shares.

[Past performance does not guarantee future results. This offering’s results are not necessarily indicative of future recommended offerings. Real Estate Investing is subject to risk, including, but not limited to potential disruptions in cash flow, loss of principal, illiquidity, etc.]

 

Written By: Staff




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