Drew Wahlgren is the Director of Capital Markets at MAG Capital Partners, a private investment firm focusing on single-tenant, net lease development and sale leaseback structured transactions.Â In this episode, Drew talks about how he got started in real estate and explained what an industrial single tenant triple net sale leaseback is and why itâ€™s a great asset class for consistent cash flow with appreciation upside.Drew talks about the consistent cashflow that starts from day one for the passive investor.Â He explains that triple net means that the tenant pays for all maintenance, repairs, insurance and taxes so there are very few expenses for the property owner to pay.Â
Drew also talks about the financial reporting requirements they have for their tenants during due diligence prior to purchase and ongoing after the property is acquired. He discusses why a company would want to sell their property and lease it back and the importance of understanding what the company plans to do with the capital acquired from the transaction. He also talks about the competition in purchasing these assets and when and how they exit a deal.
Drew discusses how a passive investor can analyze an industrial tripe net sale leaseback opportunity and mentioned the typical preferred returns and average annual returns his firm strives for and has achieved in the past.Â He explains that this is an asset class that has done very well in the pandemic and is expected to continue to outperform in the future.
Podcasts he recommends:The Real Estate Espresso Podcast with Victor MenasceÂ
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