Best place to learn more on STNL/Net Lease Development?
The title says it all really. Wanting to learn more about the process of retail Net Lease Development. Are there any books, videos, articles, or classes geared toward retail STNL/Net Lease Development more than just general development?
[{"id": "in13xag", "text": "[https://1031tax.com/](https://1031tax.com/)\n\nI've worked with Alan before and he's a very nice and knowledgeable guy.", "replies": [{"id": "in2zov0", "text": "Isn't he more of a broker of STNL? Heard him on a podcast and he was informative. \n\nJust unsure of his helpfulness in the development side.", "replies": [], "depth": 2}], "depth": 1}, {"id": "in30fnt", "text": "Are you interested in how to identify parcels for commercial retail potential and take it through the process of raw land to a fully leased property?", "replies": [{"id": "in5aywg", "text": "Yes. I understand what makes the tenants want the parcels, things like traffic count, hard corners, population density, and HH income (please tell me if there are more). Is it standard practice for developers to have a signed leased before purchasing the land or do you purchase land then find a tenant? Do developers typically use bridge financing or conventional financing for the build? These are two questions that stick out right now, I\u2019m sure I have more.", "replies": [{"id": "in6ka0b", "text": "I'm asking because I'm interested as well. As a small retail investor, I'm starting to realize that the stabilized retail properties I get the OMs for in my email are actually the end product, ones where all the major profit as been ringed out of before a stupid doctor like me pays for it.\n\nWould be nice to somehow move up even just one step above this in the process. I know people who have made good money buying raw land and land banking it. \nOne guy even turned down a developer and reached out directly to national tenant. He is now going to have it developed with a ground lease he will keep. The beauty is because it's a ground lease, the tenant will be responsible for the whole construction, build out etc", "replies": [{"id": "in8fj1r", "text": "That sounds about like where I\u2019m wanting to go with my career. I\u2019ve seen a lot of the pro-formas for STNL properties and the returns aren\u2019t as attractive as Multi-Family but still very attractive if you can scale to more developments. Convincing the tenant to move forward with your property seems like it would be the hardest part of the deal to me.", "replies": [{"id": "in8j914", "text": "You maybe further along that me, but I would think the harder part is to find land that has future potential that hasn't already been snatched up by firms that have full-time staff doing analytics on where to buy. \n\nBut for a single family investor, all I need is one property or two. I certainly don't need to keep hitting homeruns over 30 years, esp if I plan to buy and hold.", "replies": [{"id": "inbwugg", "text": "Yeah that is true. A lot of the ones I see are on out parcels to shopping centers, those seem to be the best pieces of land for STNL developments. The only problem is the price tag that comes with them, and that eats a chunk into profit. The better move is to find an up and coming metro with land priced around 400k/acre rather than the already established metros with 1 acre out parcels selling for $1.5m. Trade off is that all the tenants you are looking for are probably more likely to go for the already established metro. There\u2019s definitely opportunities everywhere tho.", "replies": [{"id": "inbxyeg", "text": "I hear you. \n\nBut if you find an outparcel to lets say a Walmart or Publix for $1.5m, how would it pencil out?\n\n-$1.5m out of pocket.\n\n-Property tax on the parcel for X years until national tenant gets lined  up.\n\n-find a national and lease up\n\n-assuming they land lease it from you, should be minimal/no build out/TI credit right?\n\n-you then have a leased out property like a sit down Darden restaurant for maybe between $120-150k/yr rent with bumps (depending on local market rents)\n\nI guess the hold period could get long, esp if no one decides to expand given food costs rising, recession and interest rates affecting construction.", "replies": [{"id": "incuru3", "text": "Yeah that seems about right. The cost to you should be minimal like you said other than taxes for the holding period. The risk in that deal is just in the speculation that a tenant wants to expand there, but if it is a good piece of land with other established competition in the area (growth area) and a strong demographic profile for the metro it would seem like a no brainer for the tenant to take it. \n\nThat\u2019s partially why I like the build-to-suit business model better because there is still speculation but it takes that cost of building away from the tenant which gives them even more incentive to move to your land. Land leases are much simpler but seem like they would provide more work in acquiring the tenant, while build-to-suit is more overall work but give the tenant more reason to lease from you.", "replies": [{"id": "indxghj", "text": "Build to suit sounds obviously more favorable,  plus can charge higher rents compared to the revers BTS.\n\nYou would need to feel comfortable playing developer though. Thats my issue.", "replies": [{"id": "ine2r1s", "text": "Mine as well, which is why I\u2019m staying put for now lol", "replies": [], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]