Tag Archives: triple net

Triple Net NNN Leased Investment 5% Cap Rate

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This 7,500 square foot noodle manufacturing facility is located in DTLA. Sakura Noodle has occupied the concrete block building since it was built in 1980. They have a year left on their NNN lease where an investor could buy this at a 5.3% cap rate. Or a user could purchase it and ask the tenant to leave earlier.

This is a rare triple net leased investment warehouse in Downtown Los Angeles and is the only such investment in the larger industrial submarket.

The property has a fenced yard in the rear with ground level loading doors and 17′ high roof. Located in Downtown Los Angeles, the property zone is industrial, M2. There are floor drains and 400 amp power panel for food production of Japanese ramen and udon noodles.

Feel free to request detailed information.

A Few Terms: Rates and Lease Types

Availability Rate
The percentage of all space being marketed for sale or lease at a period of time in a given area.

Vacancy Rate
The percentage of all unoccupied space being marketed for sale or lease at a period of time in a given area.

Gross Lease (GRS)
A lease agreement in which the stated rent being paid to the landlord includes property taxes and property insurance.

Gross Absorption
Total number of properties leased or sold for occupancy at a period of time in a given area.

Triple Net Lease (NNN)
A lease agreement whereby the tenant is obligated to pay for all the operating expenses, i.e. property taxes, property insurance, and facility maintenance.