Triple Net Lease Properties for Sale: 1031 Exchange Options Including DST

Finding Triple Net Lease Properties for Sale

The NNN acquisition market operates through three primary channels: commercial brokerages, online platforms, and off-market sourcing. Each requires different levels of capital readiness, speed to execute, and buyer sophistication.

Traditional NNN Property Sources

National commercial brokerages handle most institutional-grade NNN transactions. Marcus & Millichap, CBRE, and Cushman & Wakefield maintain dedicated net lease groups that manage dispositions and acquisitions across all property types. These firms provide access to marketing materials, financial projections, and tenant credit summaries, but expect buyers to move quickly on quality listings.

LoopNet remains the largest public commercial listing platform, with both standard listings and auction formats. CoStar provides institutional-grade data but requires a subscription. Specialized NNN marketplaces exist but represent a smaller fraction of available inventory.

Auction platforms like LoopNet Auctions and Ten-X handle time-sensitive or distressed dispositions. These sales move fast and often require proof of funds or financing approval before bidding.

Off-market sourcing through broker relationships, 1031 intermediaries, and local commercial agents often surfaces properties before public listing. The best NNN assets rarely reach broad distribution. They trade within networks of repeat buyers who can close without contingencies.

What Quality NNN Properties Cost

Price ranges correlate directly with tenant credit quality and remaining lease term. Investment-grade single-tenant properties with corporate guarantees from entities like Walgreens, Amazon, CVS, or FedEx typically cost $3 to $15M and trade at cap rates in the mid-5% to low-6% range. Q4 2025 transaction data shows an Amazon-leased industrial facility in Troutdale, Oregon closing at approximately $113.2M with a 5.35% cap rate, while a Chick-fil-A ground lease in Placentia, California sold for roughly $7.9M at a 4.30% cap rate.

National non-investment-grade tenants fall into the $1 to $5M range with cap rates between 6.5% and 7.5%. Regional and local tenants occupy the $500K to $2M segment, with cap rates above 7% and sometimes reaching 8.5% or higher depending on lease term and location quality.

Remaining lease term drives pricing more than any other single factor. Dollar General properties with 12 to 15 years remaining trade around 6.90% cap rates, while those with under three years approach 9%. Family Dollar follows a similar gradient, with sub-three-year leases reaching approximately 9.50% cap rates. Walgreens assets show the same pattern: 7.40% for properties with 10 to 14 years remaining, 8.50% for six to nine years, and 9.25% for under five years.

This term-driven pricing creates a practical barrier for most individual buyers. The NNN properties worth owning require $1M+ in acquisition capital, often more when targeting investment-grade tenants with meaningful lease terms remaining.

The 45-Day Identification Crunch: Why NNN Hunting Is Stressful

The 1031 exchange timeline is set by federal law under IRC Section 1031(a)(3) and Treasury Regulation 1.1031(k)-1. No extensions apply except in declared disasters.

1031 Exchange Timeline Pressure

The clock starts at the close of the relinquished property sale. Proceeds transfer to a Qualified Intermediary who holds them in escrow throughout the exchange period.

By midnight on the 45th calendar day after closing, the exchanger must identify potential replacement properties in a written document, signed and delivered to the QI, the seller of the replacement property, or another qualified person involved in the exchange. Weekends and holidays count. Missing this deadline by even one day invalidates the entire exchange.

Three identification methods exist. The three-property rule permits identifying up to three properties of any value, provided at least one is acquired. The 200% rule allows identifying any number of properties as long as their combined value does not exceed 200% of the relinquished property value. The 95% rule permits unlimited identification as long as the exchanger closes on properties representing at least 95% of the total identified value.

Closing on identified replacement property must occur by the earlier of 180 calendar days after the relinquished property transfer or the tax return due date with extensions. Failure at either deadline triggers immediate recognition of all deferred capital gains, depreciation recapture, and potentially net investment income tax on the original sale proceeds.

No partial credit applies. Identifying property but failing to close invalidates the exchange completely.

Limited Quality Inventory

While Q4 2025 supply reached decade-high levels at 5,710 properties nationally, bid-ask spreads compressed across all sectors. Retail properties showed a median spread of just 25 basis points between asking and closed cap rates. Office and industrial followed similar patterns with 50 and 29 basis points respectively. Tight spreads indicate strong buyer demand relative to available quality inventory. Properties meeting investment criteria sell near asking prices with limited room for negotiation.

Institutional buyers compete directly with individual exchangers. REITs, pension funds, and family offices operate without 1031 timeline constraints and often submit all-cash offers. For an exchanger operating under deadline pressure, this competition reduces negotiating leverage substantially.

Searching, underwriting, and closing a direct NNN purchase within 45 days for identification plus 135 additional days for closing is achievable but tight. Commercial real estate transactions typically require 60 to 90 days from contract to close, particularly when financing is involved.

Minimum Investment Reality: Quality NNN Requires $1M+

Capital requirements for direct NNN acquisition function as a practical filter. Most investors shopping this segment discover that the properties worth owning exceed their available deployment capital.

Price Ranges by Tenant Credit Quality

Investment-grade tenant properties occupy the $3 to $15M range. These assets feature corporate guarantees from publicly traded companies with S&P or Moody's ratings of BBB-/Baa3 or higher. Cap rates fall between 5.0% and 6.5% depending on remaining lease term and location.

CVS properties traded at approximately 6.67% cap rates in Q4 2025, while certain quick-service restaurant ground leases like Chick-fil-A commanded rates as low as 4.30% to 4.50%. These compressed cap rates reflect the market's assessment of default risk and cash flow predictability.

National non-investment-grade tenants provide higher yields but lack the same credit quality buffer. These properties cost $1 to $5M with cap rates in the 6.5% to 7.5% range. The yield premium compensates for elevated tenant credit risk.

Regional and local tenants offer the highest nominal returns at 7.0% to 8.5%+ cap rates, with purchase prices between $500K and $2M. Credit analysis becomes more difficult as financial statements and ratings are often unavailable for private regional operators.

The Down Payment Barrier

Lenders typically provide 60% to 70% loan-to-value financing for quality NNN properties. A $2M acquisition requires $600K to $800K in equity capital. Competitive situations increasingly require all-cash offers to win, particularly for properties listed below market rates or carrying especially favorable lease terms.

Many 1031 exchangers find their proceeds insufficient to acquire the quality of NNN property they want directly. An investor selling a $750K rental property faces a difficult choice: stretch into a marginal NNN asset at that price point, add outside capital to reach a better property (which triggers taxable boot), or split proceeds across multiple smaller properties (which multiplies management complexity).

This capital mismatch is structural, not situational. DST investments address it by reducing minimums to $50K to $100K per offering, providing access to institutional-quality NNN properties that would be unattainable through direct purchase at the same capital level.

Due Diligence Challenges for Direct NNN Buyers

Direct NNN acquisition requires thorough analysis across tenant credit, lease structure, property condition, and market positioning. Under 1031 timeline pressure, this work compresses into weeks rather than months.

What You Need to Verify

Tenant credit analysis sits at the center of NNN due diligence. For single-tenant properties, this entity represents the sole revenue source. Pull credit ratings from S&P, Moody's, or Fitch when available. Review financial statements, focusing on debt service coverage ratios, liquidity, and industry positioning. Assess whether the guarantee runs to the parent company or remains at the subsidiary level. Parent guarantees from investment-grade companies provide substantially more protection than subsidiary-only obligations.

Lease review requires line-by-line analysis. Verify the NNN structure covers property taxes, insurance, and common area maintenance as specified. Confirm remaining term, rent escalation mechanisms (fixed percentage, CPI-based, or hybrid), renewal options, early termination clauses, and subletting rights. Identify any co-tenancy provisions, sales-based rent reduction triggers, or caps on expense reimbursements. These provisions affect both cash flow predictability and property value.

Property condition assessment typically begins with a Phase I Environmental Site Assessment. When the Phase I identifies concerns, a Phase II involving soil or groundwater testing follows. Commercial building inspection covers roof condition, structural integrity, HVAC systems, and major building components. While NNN tenants cover most maintenance expenses, landlords often retain responsibility for structural repairs and roof replacement.

Title review confirms clear ownership with no liens, easements, or encumbrances that affect use or value. Survey work verifies property boundaries, identifies any encroachments, and confirms zoning compliance.

Market analysis examines rent comparables, submarket vacancy rates, and competitive properties. Cap rate verification involves comparing the asking cap rate against recently closed transactions for similar tenant credit, lease term, and location quality.

Timeline Pressure vs. Thoroughness

The 45-day identification period forces simultaneous evaluation of multiple properties. Full due diligence on one property cannot be completed, rejected, and restarted on another within that window. The calendar requires parallel analysis of several properties simultaneously to ensure at least one meets criteria and closes successfully.

Due diligence often overlaps with the identification period rather than following it sequentially. Inspection reports, Phase I ESAs, and preliminary title work may need to begin before formal identification to maintain schedule integrity.

Financing adds another constraint. Lender underwriting, appraisal, and loan approval commonly require 30 to 60 days. For exchangers attempting to close within 180 days total while spending the first 45 on identification, this leaves minimal margin for delays.

Competitive bid situations create pressure to waive contingencies. Sellers favor offers without financing contingencies, inspection contingencies, or extended due diligence periods. Waiving these protections to win a property exposes buyers to risks that more thorough analysis might have revealed.

DST sponsors complete all due diligence work before bringing offerings to market. Investors review a finished Private Placement Memorandum containing tenant credit analysis, property inspections, lease summaries, financial projections, and risk disclosures. The analysis burden shifts from individual due diligence under time pressure to evaluation of pre-completed professional work.

The DST Alternative: Pre-Packaged 1031 Replacement Properties

Delaware Statutory Trusts function as passive investment vehicles holding title to commercial real estate. When structured according to IRS Revenue Ruling 2004-86, they qualify as like-kind replacement property for Section 1031 exchanges.

What Is a Delaware Statutory Trust?

A DST is a legal entity formed and governed under Delaware law. It holds title to real property with beneficial interests owned by investors. When properly structured, the IRS treats the DST as a grantor trust, meaning investors are considered direct owners of the underlying real estate for tax purposes rather than owners of trust certificates.

The trust structure provides limited liability similar to corporate shareholders. Creditors of individual investors cannot reach trust property. The trustee manages property operations while investors may receive proportional distributions based on their beneficial interest percentage.

DSTs can own single properties or portfolios. They can be structured with leverage or as all-cash acquisitions. Professional sponsors handle all acquisition, financing, leasing, and property management functions.

Why DSTs Qualify for 1031 Exchanges

IRS Revenue Ruling 2004-86, issued in July 2004, established that properly structured DST interests qualify as like-kind replacement property under Section 1031. The ruling imposed seven operational restrictions that prevent the DST from being classified as a business trust, which would disqualify it from exchange treatment.

These restrictions, commonly called the "Seven Deadly Sins," include: no additional capital contributions after the offering closes; no refinancing, renegotiation, or new debt placement; no lease modifications except in tenant bankruptcy or insolvency; mandatory quarterly distribution of all cash less reserves; reserves held only in short-term government obligations; capital expenditures limited to normal repairs, non-structural improvements, or legal compliance requirements; and no reinvestment of sales proceeds.

As legal analysis from Baker McKenzie noted, these limitations ensure the trustee's activities are limited to collecting and distributing income rather than conducting active business operations. The restrictions preserve grantor trust status, which treats investors as direct owners of the underlying property rather than holders of business entity interests.

The DST structure differs from Tenancy-in-Common ownership, which limits ownership to 35 co-tenants maximum. DSTs have no ownership limit, allowing larger property acquisitions and broader investor access.

Lower Minimums, Faster Closing

DST offerings typically require $50K to $100K minimum investments, with some sponsors accepting $25K for additional investments by existing clients. This represents a 10x to 20x reduction versus the $1M+ capital required for quality direct NNN purchases.

Closing timelines compress to 2 to 4 weeks versus 60 to 90 days for direct acquisitions. Leverage is already in place within the DST structure, eliminating loan qualification requirements for individual investors. Property selection is complete, due diligence is finished, and legal documentation is standardized.

Investors can split exchange proceeds across multiple DST offerings. An exchanger with $500K in proceeds can allocate $100K each to five different properties, achieving diversification across tenant types, property sectors, and geographic markets. This diversification approach is functionally impossible at the same capital level through direct ownership.

Research from Plante Moran emphasizes that DSTs reduce the day-to-day operational obligations typically associated with direct real estate investing while maintaining qualification as like-kind property under current IRS rules. The structure trades direct control for passive ownership, a trade-off that fits most investors completing 1031 exchanges.

How DST Simplifies the 1031 Timeline

The DST structure removes three major friction points from the 1031 exchange process: property hunting, due diligence execution, and closing coordination.

No Property Hunting Required

DST offerings exist as available inventory when investors need replacement property. Multiple offerings across property types, tenant quality levels, and geographic markets allow investors to identify replacements quickly without competitive bidding.

Investors can identify multiple DSTs to match their exact exchange amount. An exchanger needing to deploy $673,000 can identify seven DST positions at $96,143 each rather than searching for a single property at precisely that price point or stretching to a higher purchase price.

Competitive dynamics differ fundamentally from direct property acquisition. DST offerings accept subscriptions from multiple investors simultaneously rather than operating as winner-take-all bidding. One investor's subscription does not prevent another's participation until the offering reaches its maximum raise amount.

Due Diligence Already Completed

DST sponsors complete tenant credit analysis, property inspections including Phase I Environmental Site Assessments, comprehensive lease review, market analysis, and legal due diligence before launching the offering. The Private Placement Memorandum contains this analysis in consolidated form.

Investors review finished work rather than executing original due diligence. The PPM includes property descriptions, tenant financial information and credit ratings, detailed lease terms including escalations and renewal options, acquisition cap rates, projected distribution rates, sponsor fee structures, and comprehensive risk factor disclosures.

This shifts the investor's task from conducting due diligence under deadline pressure to evaluating the quality and completeness of pre-completed professional analysis.

Predictable Closing Process

DST subscription documentation follows standardized formats. Legal review focuses on fee structures, distribution waterfalls, and exit provisions rather than unique property-specific terms.

No lender coordination is required. Leverage is already arranged at the trust level. Individual investors do not qualify for loans, negotiate interest rates, or coordinate with loan servicers.

Closing occurs when the investor signs subscription documents and wires funds. The entire process completes in days rather than the weeks or months required for commercial property closings involving financing, title insurance, surveys, and escrow coordination.

Most investors working with qualified 1031 advisors close on DST investments within 2 to 3 weeks of their relinquished property sale, providing substantial margin within the 180-day exchange deadline.

Current Triple Net Lease Properties for Sale via DST

Available DST offerings represent institutional-quality NNN properties accepting investor subscriptions. Each listing displays property type and location, tenant name and credit quality, remaining lease term, minimum investment requirements, and Year 1 projected distribution rates. Actual distributions are not guaranteed and can change over the hold period.

These offerings are often structured as 506(c) securities under Regulation D, limiting participation to accredited investors. All properties have completed sponsor due diligence including environmental assessments, lease analysis, and tenant credit review.

Direct NNN Ownership vs. DST: Making the Right Choice

Both paths provide access to NNN property cash flows. The correct choice depends on capital available, timeline constraints, operational preference, and risk tolerance.

Direct NNN ownership makes sense for investors with $1M+ in exchange proceeds who want a specific property they can visit and inspect personally. It fits those who prefer direct control over lease negotiations, tenant relationships, and property decisions. The direct path works best when the 1031 timeline provides months rather than weeks for property search and due diligence.

Direct ownership also suits investors building commercial real estate expertise or those who want hands-on landlord experience rather than passive ownership. All decisions about lease renewals, rent adjustments, capital improvements, and property disposition timing rest with the owner. This control comes with corresponding management responsibility.

DST structures work better for most 1031 exchangers facing deadline pressure. The 45-day identification requirement creates genuine time constraints that quick closing timelines help address. DST investments fit situations where exchange proceeds fall below $1M, making quality direct NNN purchases financially impractical.

The passive ownership model suits investors who want NNN income without landlord duties, lease negotiation involvement, or property management responsibilities. DST investors may receive periodic distributions and annual tax documents but make no operational decisions about the underlying properties. Distribution amounts are not guaranteed and depend on property performance.

Diversification represents another structural advantage. Splitting $500K across five DST positions at $100K each provides exposure to five different tenants, property types, and markets. Achieving equivalent diversification through direct ownership would require $5M+ in capital and substantially more complex management coordination.

DST investors avoid personal loan guarantees and individual loan qualification. The trust structure handles all financing at the entity level. This matters for investors who want leverage benefits without personal credit exposure or those whose financial situations make commercial loan qualification difficult.

The trade-offs are control, liquidity, and fees. DST investors cannot negotiate lease terms, approve capital expenditures, or direct property sales. The Seven Deadly Sins restrictions mean the trustee lacks authority to refinance debt, modify leases, or make structural property improvements even when market conditions suggest those actions would be beneficial. DST interests are illiquid securities with no guaranteed secondary market, and sponsor fees (typically including upfront and ongoing management fees) reduce net returns compared to direct ownership.

Frequently Asked Questions

Every investor's situation is different, and the right structure depends on your goals, tax position, and risk tolerance. Consulting with a CPA or tax advisor familiar with your situation is an important step before committing capital to any 1031 exchange strategy. Cap rates and transaction data referenced in this article reflect recent market conditions and are not indicative of future property values or investment returns. The Anchor1031 team can help you evaluate specific options with that context in mind. Reach us at (502) 556-1031 or schedule a call at anchor1031.com.

Next Steps: Browse Available Properties or Schedule Consultation

Whether you are exploring direct NNN purchases or considering DST alternatives for your 1031 exchange, the next step is reviewing what is currently available. Browse our current DST property offerings to see institutional-quality NNN assets accepting investor subscriptions, or schedule a consultation with the Anchor1031 team to discuss which structure best fits your exchange timeline, capital amount, and investment goals.