TRANSACTION ATTORNEY DAVE BARRY ON THE POTENTIAL PITFALLS IN ACQUISITIONS
In this special episode, co-hosts Adam Carswell and Michael Flight bring on David M. Barry Jr., attorney at Jacobs, Walker, Rice & Barry, LLC, to discuss how to evaluate Triple Net (NNN) lease deals from the perspective of an experienced real estate attorney. Michael, Adam and David detail what aspects of Triple Net leases that investors should be aware of in a property’s title search during the due diligence period. They also define crucial terms to know for a net lease, including: subordination, non-disturbance and attornment agreement (SNDA); Reciprocal Ease Agreement; and tenant estoppel agreement. Michael and David explain why Single-Tenant Triple-Net Leased (STNL) real estate are advantageous deals compared to multifamily properties and buying whole shopping centers, as well. Closing the show, David and Michael share what mistakes they have witnessed investors make regarding commercial real estate and multifamily deals as well as how investors should approach 1031 exchanges from a legal standpoint.
Michael and Adam would like to give a huge thanks to David for coming on the show and sharing his knowledge and experience with the Nothing But Net community.
Contact David M. Barry, Jr.:
Jacobs, Walker,
Rice & Barry, LLC
JWRB provides clients with quality legal services for Real Estate, Business and Finance law. With almost 175 years of collective experience, the firm offers affordable legal services with a network of highly responsive, accessible attorneys. Jacobs, Walker, Rice & Barry, LLC, has been based in Manchester, CT, for more than 50 years and is conveniently located in the Greater Hartford area to serve all of their clients’ legal needs.
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DISCLAIMER: The information provided on this podcast is intended to be educational and informational only and is not considered to be formal legal advice. The listener should not take or refrain from taking action based on its content. Any listener in need of a legal opinion upon which to rely in decision making should consider formally engaging an attorney to review relevant facts in detail and examine the pertinent law as it applies to those facts.
Timestamped Shownotes:
02:03 – Host Adam Carswell and co-host Michael Flight, CEO and co-founder of Liberty Real Estate LLC (Liberty), introduce special guest David Barry, Attorney at JWRB, LLC
07:20 – How did David discover that he wanted to become an attorney for real estate law?
09:28 – What is the difference in an attorney’s review of a multifamily lease versus a Triple Net (NNN) lease?
11:10 – What should Net Lease investors be aware of for outparcel space if noted in an NNN lease?
11:42 – What are Cross Easements, Access Easements, and Common Pile-On Easements for shopping centers?
12:42 – Why do buyers need to pay attention to the Reciprocal Ease Agreements in the Title Search of a Net Lease property?
14:23 – What two things does a landlord look for from the tenants in a commercial real estate deal?
14:41 – What is a Subordination, Non-Disturbance and Attornment Agreement (SNDA)?
16:52 – What is a Tenant Estoppel Certificate?
19:17 – Why are Single-Tenant Triple-Net Leases (STNL) typically easier to work with than leases for shopping centers?
21:47 – Why is it beneficial to work with attorneys, who often have experience with national tenants?
24:59 – What mistakes has David observed investors make in the industrial real estate space?
26:18 – What pitfalls do commercial real estate investors make when evaluating the components of a Net Lease property?
28:38 – What helped David become educated in the Triple Net lease space?
31:35 – What is David’s forecast for the future of the NNN property market?
32:51 – How should investors approach the process of buying a 1031 exchange?
34:44 – Why are STNL properties superior investments for those looking to generate passive income from real estate?
Key Points:
1. The importance of Reciprocal Ease Agreements in a Triple Net lease for commercial real estate.
2. Landlords should look for a Subordination, Non-Disturbance and Attornment Agreement (SNDA) and Tenant Estoppel Certificate during a title search.
3. The benefits of working with a real estate attorney that has experience with national tenants and Net Leases.
4. Single-Tenant Net-Leased (STNL) properties generate passive income with minimal management responsibilities.
For more information contact us here and mention Nothing But Net or simply NNN:
For more information contact us here and mention Nothing But Net or simply NNN:
Liberty Real Estate Fund LLC (https://libertyfund.io/)
Nothing But Net is sponsored by:
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