Zoom Meeting Summary — Exchanging into Triple Net (NNN), June 17 2026

Zoom AI Companion summary of the June 17, 2026 consultation in which Mike Priolo presented the multifamily-to-NNN concept to Mark Yazdani, Farzin, and Azita. Mike walked through why aging multifamily ownership becomes management-intensive, how a 1031 exchange can move equity into passive net-leased assets, and how tenant credit and lease guarantees mitigate the shift from operational risk to credit risk. He used single-tenant examples (Heartland Dental, Caliber Collision) and committed to adding multi-tenant options and example leases in follow-up materials.

Key Facts¶

LLCs can do 1031 exchanges, but all members must participate together (IRS treats the LLC as one taxpayer).
Debt must be maintained or increased in the exchange, never reduced.
NNN structure: tenant pays taxes, insurance, and maintenance; landlord NOI is protected from operating-expense growth.
Preferred tenant types: medical, dental, fast food, automotive — internet/pandemic/recession resistant.
NNN rent growth targets inflation (~1.5–3%/yr); fast food often steps up, medical/dental/auto often 1.25–3% annual.
Tenants must keep paying rent during bankruptcy unless they fully cease operations.

Notable Quotes¶

"Risk shifts from operational to credit risk" in moving from apartments to NNN.