All assets were sold via zero cash flow financing, offering buyers tax advantages
Newport Beach, CA (February 18, 2022) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the sale of 13 CVS-occupied properties valued at approximately $90 million. The properties which total just under 195,000 square feet are located in the states of Arizona, Texas, Virginia, South Carolina, Idaho, Louisiana, Oklahoma, Ohio and New Jersey.
“This was a portfolio of credit tenant-leased (CTL) financed zero cash flow assets whereby they provided tax advantages and equity growth benefits to the investors,” said Redfield. “The majority of the buyers were in a 1031 exchange and utilized paydown readvance or paydown payup, a unique structure in some zero cash flow loans where the investor can satisfy the exchange and pull cash out. With limited net leased assets on the market, this zero cash flow structure gives 1031 buyers an opportunity to realize good profits from their sale without having to pay potentially large capital gains and depreciation recapture.”
Like 1031 exchanges, zero cash flow opportunities also have tax advantages for investors who purchase without an exchange and can utilize tax benefits with accelerated depreciation. Since they are highly leveraged, many times an investor can utilize bonus depreciation to help with portfolio level tax strategies
In 2021, SRS’ Investment Properties Group and National Net Lease Group (NNLG) completed 800 transactions valued in excess of $3 billion and currently has in excess of $2 billion in property on the market.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in North America exclusively dedicated to retail services. Headquartered in Dallas with more than 26 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, and investment services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit www.srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsnnlg.com.