Investment grade real estate has proven time after time to be the acquisition of choice for
most of the world's sophisticated entrepreneurs. It is not surprising that the demand placed
on AmCorp Realty by its clients to locate exceptional real estate increases year by year.
Our clients have come to expect consistent guaranteed distributions and value the opportunity
to further increase their returns by leveraging their investments.
Favorable US tax treatment, including "1031 Tax Deferred Exchanges", reduced long-term tax rates on
disposition profits of US investment grade real property as well as depreciation and other deductions ensure the
continued desirability of US investment grade real property.
AmCorp Realty specializes in various distinct investment types:
Single Tenant Net Leased Properties
- Few if any landlord responsibilities
- Long-term financial planning
- 15 to 75 year leases
- Investment grade tenants
- Favorable financing terms
Net leased single tenant properties offer a combination of both ease of accounting and management,
but above all, simplicity in long-term financial planning. A typical lease term may provide
for an initial commitment of between 15 and 25 years, and most likely will include options for
additional 50 years. It is also not uncommon for net leases to include percentage rent provisions.
Additional rent is typically based on the annual sales volume generated at a particular location.
Shopping Centers
- Long-term anchor leases
- Regional tenant leases including rental increases
- Common area maintenance expenses paid by tenants
- Annual increases in distribution
- Favorable financing term
Grocery anchored shopping centers include a combination of long-term and short-term leases.
The primary tenant is typically a national or credit tenant and is also referred to as the anchor tenant, it not only brings significant
daily traffic to the center, but also provides a long-term flat lease, providing continuity
and financial stability to the investment. The anchor tenant's presence facilitates the attraction for the higher rent of regional and local tenants.
The smaller regional and local tenants negotiate shorter lease terms with significantly higher per square
foot rental rates as well as regular rental increases, providing for annual increases in distribution.
Office Buildings
- Diversified tenant mix
- Annual rental increases
- National and local credit mix
- Increased cap rates
Office buildings offer increased returns, due in part to the shorter term of most leases, as well as a
higher assumed credit risk relative to the significant amount of space leased to non-credit tenants.
Although most leases are full service in nature, allocating all operating expenses to the landlord,
it is not uncommon to negotiate provisions allocating various annual expenses such as real estate taxes
and insurance costs in part to the tenants.
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