Spectrus Real Estate – Frequently Asked Questions
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- What are the terms of the master lease?
- It is a 20-year lease (note: the lease has an option to terminate after 10 years by the lessee). The master lease is a triple-net lease in which the lessee completely leases the replacement property under an annual lease payment plan. The lessee takes on the responsibility to sublet the property. In addition to rent, taxes, insurance and maintenance, the lessee also pays the debt-carrying expenses.
- Can I terminate the lease?
- The master lease terminates whenever the owner votes to terminate it or at the sale of the property in its entirety.
- How much confidence can I place in a master lease?
- Because of the master lease, you have a lessee with an established history of commercial property experience and financial wherewithal. Institutional-grade properties generally attract tenants with greater financial strength and stability than is possible for the individual landlord.
- What are NNN Properties?
- NNN properties refer to properties that are under a triple-net or NNN lease in which the tenant is to pay all operating expenses of the NNN properties. The owner contracts with a lessee to lease each of our properties as the master lessee. The master lease offers more advantages than a NNN lease. The master lease is a NNN lease in which the lessee completely leases the replacement property under an escalating lease payment plan. The lessee takes on the responsibility to sublet the property. In addition to rent, taxes, insurance and maintenance, the lessee also pays the debt-carrying expenses.
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