Many private investors seek smaller STNL assets priced below $2M. These investors tend to focus on passive, low risk, income producing assets in the 6 to 8% cap rate range. Price point of the assets, driven by rental rates and lease terms, dictate the type and quality of assets an investor can afford. The following tiered based structure provides general guidelines for what investments are available:
Tier 1: $500,000 - $1,000,000
- Dollar discount stores, stand alone convenient stores, office and medical condos.
Tier 2: $1,000,000 - $2,000,000
- Dollar discount stores, fast food and casual dining restaurants, office and medical
Tier 3: $2,000,000+
- Bank ground leases, pharmacies, child care centers, casual dining restaurants and big boxes.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
