Established Fund Manager Creates a New NNN Development Equity Platform

Nebo has identified a new JV equity program recently created by a veteran real estate investment group. The program provides capital for single tenant NNN developments, both build-to-suit and repositionings.

The equity group seeks 4-5 partners that can do 4-6 deals per year, and will pick its limited pool of participants in the next few months.

The eligible asset classes include retail, restaurant, MOB, governmental, and other groups. This is a national program. Both national and regional tenants considered, with a 10-year lease minimum.

The deal structure contemplates an 8%-10% preferred return. It will fund 80%-100% of the equity need, guarantee the debt, and do 70-30% profit splits. The minimum equity check is $1MM, maximum stack leverage is 90%.

The JV program allows market rate developer fees and sponsor promotes. The exit strategies allow for sale upon stabilization or refinance and buy-out of JV equity.

December is rapidly approaching, and Nebo is primed to assist with speedy end-of-year closings. Reach out to Nebo for help on your project today.