How liquid is the investment?
The investor controls when to buy or sell fee-simple, net leased properties. Due to the rise in real estate investors engaged in Section 1031 exchanges, net leased properties have become an increasingly well-known mechanism to cover an investor’s need for replacement property. The investor pool is larger for lesser valued properties (less than $1.5 million). As with any real estate investment, care should be given to performing due diligence on the purchase. Highest and best use, creditworthiness of tenant, terms of the lease, condition of building, usefulness and location of property and competitive cap rates are a few of the items that will determine the attractiveness of the real estate to the market.
