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NNN Deep Research Report (independent, 10-part)

A ten-part independent research report (prepared June 18, updated June 22, 2026) that supplements the Knowledge Base with outside market data, tenant credit research, tax mechanics, financing terms, and risks the OMs do not highlight. Its central caution: the four properties span very different tenant credit tiers (UnityPoint Fitch AA-, Caliber unrated/large, Heartland Dental sub-investment-grade B/B2), yet the two Heartland properties are priced at 6.00–6.25% caps when comparable DSO assets trade at 7.00–8.50%. It also details 1031 mechanics, 100% bonus depreciation reinstatement, DST alternatives, and a question list for Mike.

Key Facts

  • NNN cap rates compressing in 2026 (avg ~6.45%), first compression after 12 quarters of expansion.
  • Heartland Dental: Moody's B2 / S&P B (sub-investment grade), KKR-backed.
  • UnityPoint: Fitch AA-, but posted recent operating losses; Ankeny lease has no renewal options (expires 2031).
  • Caliber Collision: unrated, H&F/LGP/OMERS PE-backed, confidentially filed for IPO July 2025.
  • Mortgage boot triggered if replacement debt < relinquished debt; drop-and-swap needs 1–2 yr lead.
  • 100% bonus depreciation permanently reinstated for property acquired after Jan 19, 2025.

Notable Quotes

  • "NNN returns are primarily income-based, not appreciation-based."

See also: Cap Rate Compression · Mortgage Boot · DST