NET LEASE RETAIL
TARGETED INVESTMENT
• Product: NNN Retail facilities with mid to long term leases.
• Tenants: Global corporate and/or national tenants with good credit ratings.
• Industries: Food and Healthcare.
• Target Return: Minimum 5% Capitalization Rate (CAP) plus potential real estate appreciation.
• Geographic Targets: Low and tax free states like Florida and Texas and major metropolitan cities in the US.
INDUSTRY EXAMPLES
• Food / Casual Dining Restaurants: Panera, Ruby Tuesday, Olive Garden Food
• Quick Service Restaurants: Taco Bell, Burger King, Chipotle
• Health Care / Pharmacies: Wallgreens, CVS, Rite-Aid
• Medical Buildings: Davita, Aspen Dental, Med Post Urgent Care
CHARACTERISTICS OF THE INVESTMENT
• Medium to long-term investment with monthly income, and periodic rent increases.
• Stability and confidence with cash flows and potential appreciation.
• Objectivity in the valuation of assets: price is directly related to the net operating income (NOI) and tenant’s credit worthiness.
• Minimum owner’s management.
• Business relationships with commercial tenants are conducted in a more professional fashion than those of residential real estate.
TARGET MARKETS
• AG focuses on identifying opportunities in major metropolitan areas of the country, not only the most populated, but of greater economic impact.
• AG takes in consideration that there is significant current and future demand for products and services offered by companies that are and will be potential tenants.
• The cities and metropolitan areas that are included in AG’s radar are: Orlando, Tampa, Jacksonville, Miami, Atlanta, Houston, Dallas, Boston, New York, Washington and Chicago.
• AG believes that the definition of the macro markets is key, but the ultimate goal is to ensure that the basic principle of the entire real estate investment is met; “location, location, location”.
• AG only analyzes properties that fall minimum in middle-class areas with household income greater than $55,000 per year.Size of market: population greater than 100,000 within a 5 mile radius.