Land Use Lawyer Los Angeles, CA
Land Use Lawyer Los Angeles, CA
What is an absolute NNN ground lease?
As a land use lawyer Los Angeles, CA believes in knows, investing in a NNN lease (also known as a triple net lease) property can provide a steady and reliable income. You may also know that there are various types of commercial NNN lease opportunities. But do you have a firm understanding of what an absolute NNN ground lease is and how it may be a beneficial investment for you? Kassouni Law can work with you to find an absolute NNN ground lease property for sale that matches your portfolio goals. For those interested in taking advantage of conservative, long-term return investments, an absolute NNN ground lease may be ideal. Below is more information about them, but we encourage you to contact a Kassouni Law land use lawyer in Los Angeles, CA to learn more.
An absolute NNN ground lease is an agreement between a property’s tenant and the owner of that property. As part of the agreement, the tenant will lease the land with the intention of building a new structure. When the structure is in place, the tenant will own the building but not the land. The tenant will be responsible for all of the costs and expenses related to the design, construction, and maintenance of the building on that land. However, the owner of the land is usually responsible for paying the land’s annual property taxes. An absolute NNN ground lease is typically long, lasting anywhere from 50 years to 99 years. Should the tenant ever default on the lease or if the lease term expires, the landowner takes ownership of the building as well as retaining ownership of the land. In this event, a Los Angeles, CA land use lawyer will likely be beneficial.
How does an absolute NNN ground lease compare to an absolute NNN lease?
- An absolute NNN lease on a commercial building covers the building and not the land. The tenant is responsible for any expenses associated with the building, including taxes, repairs, maintenance, and insurance.
- An absolute NNN ground lease on a commercial property applies only to the land. The tenant pays a monthly rental rate for the use of the owner’s land. Once the tenant has built a structure on the land, they will be responsible for the expenses associated with the building, including taxes, repairs, maintenance, and insurance. A land use lawyer Los Angeles, CA trusts can provide advice when entering a NNN ground lease agreement..
What are the benefits of investing in an absolute NNN ground lease?
An absolute NNN ground lease can provide benefits to the tenant as well as for the landowner. Here is a short list of the advantages for the NNN ground lease investor:
- Reliable monthly income stream. An absolute NNN ground lease offers the investor a reliable and fixed monthly income for as long as you own that property and have a tenant leasing it from you.
- Low-risk investment. Because the tenant assumes all of the financial costs and risks of building and maintaining a structure on land owned by the investor, the investor collects rent but does not pay for anything.
- Minimum or no management of the structure or costs, or the management of the tenant’s business.
To learn more about the benefits of an absolute NNN ground lease, contact us at Kassouni Law to speak to a land use lawyer in Los Angeles, CA today.