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Net Lease Properties and the Portfolio Purchase Discount

For almost every product out there, a discount is available for buying in bulk. The same is true for real estate, including single-tenant net lease properties.

By Jonathan Hipp | Updated on May 29, 2015

For almost every product out there, a discount is available for buying in bulk. The same is true for real estate, including single-tenant net lease properties. Bulk purchasing, which involves a buyer acquiring multiple properties from one seller in a single portfolio transaction, can save buyers 70 or more basis points in cap rate in some cases. It also allows the seller to execute a sale much faster than selling each property individually. This results in a simpler transaction with marginally lower transaction costs. Naturally, the downside for the seller is less proceeds.

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