Single-tenant, triple-net-leased assets, such as 7-Eleven, Starbucks, Dutch Bros. Coffee, and Chick-Fil-A, have continuously proven themselves as stable investments in economic uncertainty, becoming the asset of choice for many investors. A trend arose during the recession of 2008 when single-tenant products emerged practically unaffected. Today we see a similar trends with triple-net-leased products in the market compared to other risky unsecure alternatives.
Tauro’s Stephen Stein and Tony Festa collaborated on arranging the financing for a secured total of $50 million in revolving debt facilities. This sum allows single-tenant, triple-net-leased developers to continue the expansion of their portfolios through new site acquisitions and development.
Collectively, the use of funds includes leasing commissions, land acquisition, due diligence, financing, and the reimbursement of all pursuit costs. Private lenders and debt funds were used to obtain all facilities offering 100% loan-to-cost debt facilities. This resulted in increased liquidity for developers through freeing up tied-up equity and pursuing other opportunities without sharing any profit participation.