In this episode, co-hosts Adam Carswell and Michael Flight are joined by expert special guest Randy Blankstein who is President of The Boulder Group a Net Lease Advisory Firm, to discuss his company’s research with net lease properties and how the Triple Net (NNN) space continues to flourish, even during a global pandemic. Randy shares the benefits of boutique net lease firms compared to large corporations as well as what high-risk NNN investments look like verus more safe options with investment-grade tenants. Michael, Adam and Randy also look at the trends of the real estate industry that make Triple Net properties so attractive to investors, like changing consumer buying patterns and preferences, and where to look to invest in NNN properties going forward. They wrap up the episode with Randy’s recalling what set the foundation for his educational experiences in the net lease space!
Michael and Adam would like to give a huge thanks to Randy for coming on the show and sharing his knowledge and experience on Net Lease, Triple Net and NNN properties with the Nothing But Net community.
Contact Randy Blankstein:
rblank@bouldergroup.com
(847) 562-0003
https://www.bouldergroup.com
Randy Blankstein is a senior commercial real estate executive with over 30 years of experience focused on advisory services in the single tenant net lease sector. He has led The Boulder Group to a national top-10 company ranking for single tenant retail transactions by both CoStar and Real Capital Analytics from 2010–2020.
Mr. Blankstein founded and managed net leased companies on both the advisory and principal sides that have been involved in over $6 billion in single tenant transactions. Currently, he is the Chair of the Net Lease Summit Conference.
Previously, he has been the Chair of the IREI Triple Net Investor Strategies Conference and the ICSC N3 Triple Net Lease Conference. In 2014, 2019 and 2020, Mr. Blankstein received the Honorable Mention for Net Lease Executive of the Year by Commercial Property Executive magazine. In 2018, he was inducted into RE Journals Real Estate Magazine’s Commercial Real Estate Hall of Fame. For the decade from 2010–2020, he was also ranked by CoStar as one of the top five commercial real estate advisors in the nation, with over 1,400 completed transactions.
Timestamped Shownotes:
01:55 – Host Adam Carswell and co-host Michael Flight, CEO and co-founder of Liberty Real Estate LLC (Liberty), introduce special guest Randy Blankstein, President of net lease advisory firm The Boulder Group
04:39 – What are 1031 exchanges and why are they beneficial for net lease real estate investments?
07:44 – How did Randy Blankstein found The Boulder Group?
08:47 – What benefits make Triple Net (NNN) property investments attractive to investors?
09:29 – Why do boutique net lease firms seem to be more successful than larger NNN corporations?
10:12 – Why did Bolder Group decide to research and create educational content for investors?
12:29 – How many transactions does Boulder Group facilitate on average and what kind of profits do they derive?
12:59 – What is a QSR?
13:09 – How have consumer buying patterns changed over the last few years, especially due to the COVID-19 pandemic?
15:35 – What is an investment-grade tenant and how are they rated?
16:09 – What is the outlook for net lease investing for this upcoming year during the later half of the pandemic?
17:30 – What types of NNN investments are more high-risk and why?
18:50 – Why are properties with drive-thrus much safer net lease investments and why?
20:09 – What are common mistakes Triple Net investors make with their first investment deals?
23:30 – Why are flat net leases with no rent increases, like those of Dollar General’s, detrimental for syndicators?
24:54 – Why is it important to thoroughly read a supposed Triple Net lease before signing the deal?
25:50 – What markets look most opportune for net lease investing right now and what are they dependent on?
28:06 – Why is Boulder Group a nationwide net lease business, rather than a statewide or countywide business?
27:47 – Why have net lease properties had the highest occupancy rates and will likely continue to expand in the real estate market?
30:50 – Why are freestanding stores growing while malls are shrinking in the retail real estate space?
34:19 – What are some foundational pieces of education that helped Randy Blankstein along his journey in the net lease real estate space?
Key Points:
1. Net Lease and Triple Net (NNN) properties offer high-yield fixed income to investors
2. Benefits of Investment-Grade credit rating for Single Tenant Net Lease (STNL) investment tenants
3. Triple Net (NNN) lease properties have historically had the highest occupancy rates in commercial real estate
4. Growth of the Net Lease space with the rise of freestanding stores over shopping centers
For more information contact us here and mention Nothing But Net or simply NNN:
For more information on:
Liberty Real Estate Fund LLC (https://libertyfund.io/)
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