- New 10-year Absolute NNN lease with zero landlord responsibilities: At close of escrow, the tenant will sign a new 10-year absolute NNN lease and will assume responsibility for all property expenses, including real estate taxes, insurance, maintenance, and all capital repairs to the roof, structure, and parking areas over the duration of the lease.
- Strong Rent to Income Ratio: Strong Rent to Income ratio: Year-one rent of $130,000 is covered approximately 46 times over by the tenant’s annual income of roughly $6.3 million, and even after a decade of contractual increases, rent still represents less than 3% of the tenant’s income at current levels.
- Annual Rent Increases: Within the new 10-year lease, the tenant has agreed to one and a half (1.5%) percent annual rent increase for the entirety of the lease.
