Are there any risks in a double net lease invesment?
A tenant may default on the lease and may go into bankruptcy or reorganization. The reserves established for the replacement of the structure, roof, etc. are inadequate at the time repairs or replacements are required. The Investor does not have approval rights for any sale of the net leased investment and must rely on the manager for all aspects of the management and operation of the net leased investment. There is generally no recognized market for triple net leased property interests and an investor may be unable to sell those interests prior to liquidation. Any investment objective may not be achieved due to significant changes in economic and regulatory environment affecting real estate.
