This Red Robin NNN ground lease in Rancho Mirage California is exactly the kind of deal I like to buy for my own account when I am in a 1031 exchange, and here’s why. This deal has all the trappings I look for when buying NNN real estate. Strong demographics, strong anchor tenants, close proximity to major interstate traffic, growing residential market with hospitals, and good social services. This deal, however, presents an enormous opportunity to create value because the underlying land value is artificially suppressed by a long-term ground lease with a tenant that is shaky at best. https://www.ranchomirageca.gov
The opportunity here is that the tenant only has 2 years remaining on their ground lease with 2 additional five-year options to extend until the land and building revert to the landlord. In this particular case the tenant’s financial condition gives an indicator that they could close this unit down in 2 years and let go of the options. Red Robin is having a terrible time there days and their stock has been pummeled as of late. There are those that feel the company can survive and the stock could take off but there are troubled waters for sure. I would do a deeper dive to understand the stores sales at this location before I pulled the trigger, but even if i had to wait the ten or twelve years to get at this land I think it’s worth the risk and the wait. https://www.redrobin.com
https://www.redrobin.com 1031 Doctor helps high-income professionals-such as doctors, lawyers, and business owners- navigate and analyze NNN investments during a 1031 exchange. On this channel, I break down real deals across the country, including gas stations, fast-food properties, and single-tenant net-leased investments. learn how an industry veteran picks out the red flags and finds the hidden opportunities where most people miss the clues. Subscribe for daily insights, deal breakdowns, and real-world strategies. 1031 Doctor will analyze any NNN investment within 24 hours for $299.00. We also locate like kind exchanges for California clients. Serving the commercial real estate industry since 1986. https://www.1031doctor.com