There are many myths associated with investing in commercial real estate that can make an individual fearful. For example, many people believe that investing in commercial real estate is too expensive or too difficult. At Millcreek Commercial, we don’t believe that at all. We make it possible for anyone to invest in commercial real estate, and have principles in place to provide you with the safety, security, and stability necessary to feel confident in your investment. In this article, we will be discussing why Millcreek Commercial Properties are a safe investment for your commercial real estate portfolio.
Why Millcreek Commercial Properties are a safe investment for your portfolio:
As part of our firm philosophy, we have a 4 pillar structure that shapes our requirements when vetting properties (which we do vigorously): long-term lease, single tenant, corporate guarantee, triple net lease. These pillars form the foundation of what makes Millcreek Commercial Properties a safe and lucrative investment for your commercial real estate portfolio.
When we acquire and develop properties nationwide, they must meet at least 3 of those 4 criteria in order for us to offer it to our clients. Let’s discuss each one in depth so you can see why there’s no need to fear:
In commercial real estate, a long-term lease can be anywhere from 5-20 years. This long-term commitment means money in your pocket every single month. This steady and predictable cash flow can give you greater flexibility and the time to do more of what you love, rather than worrying about tenants, trash, and toilets (we call this the Triple T Monster).
Additionally, with a long-term lease, you don’t have to be concerned about frequent tenant turnover or extended periods of vacancy in your building.
We love properties that are single tenant—this means that it is a one-unit property, rather than multiple businesses operating under one roof. A huge benefit of single tenant properties is the simplified management. When you only have one tenant to worry about, you aren’t concerned with vacancies and different timelines happening. Single tenant properties are often leased to established and creditworthy businesses, which provides you with peace of mind knowing that there are no risky tenants renting from you.
A corporate guarantee is an agreement in which one party, the guarantor, takes on the payments or responsibilities of the lease and rent if the debtor defaults on the lease. These guarantees are typically provided by a financially stable and creditworthy entity, often the tenant’s parent company. Having a corporate guarantor is a strong safeguard against potential defaults and unexpected circumstances. For example, our Family Dollar | Dollar Tree property in Pisgah, Alabama has a corporate guarantee. Check out the details here.
Triple Net Lease
Having a triple net lease might just be the most rewarding part of a commercial real estate investment. If you have rental properties currently or know someone who is a landlord, you may be familiar with the troubles associated. Late night calls, maintenance issues, tenant drama, and the list goes on… With a triple-net lease, you can kiss those worries goodbye. Forever!A NNN (triple net) lease is a lease agreement where the tenant is responsible for the maintenance, repairs, upkeep, taxes, insurance, and all other expenses related to the property. This means that all YOU have to do is relax and receive a monthly rent check every single month! A commercial real estate investment with Millcreek Commercial is bound to give you the passive income to do what you truly want to do, and spend more time with the ones you love.
We are the perfect solution for your 1031 exchange, because we can match your investment to the penny. We do this through tenant-in-common (fractional) ownership, meaning you own a percentage of the property, according to the amount you have available to invest. We also always have whole building properties available for your investment, as well.
The combination of a single tenant, long-term lease, NNN lease, and corporate guarantee is a sure recipe for real estate success and wealth. Our goal at Millcreek Commercial is to break down the barriers of investing in commercial real estate and make it available for anyone who is in search of creating wealth and a passive lifestyle. If this is you, don’t hesitate to reach out to us! Call today at 385.248.0613.