Strong Tenant Credit/Corporate Guaranteed Leases – Enhances long-term reliability of rent payments
- Century’s conservative underwriting is similar to that of a careful lender. Whether it is a privately held entity or a publicly traded corporation, we closely examine prospective tenants’ financials, business industry, management, and the direction of the company.
- Century wants to know that the company supporting the long-term lease is likely to pay its full rent from the first year to the last, and also provide strong possibility for renewing or extending the lease.
Single Tenant – Initial lease ensures 100% occupancy of property
- Century specializes in single tenant properties because they are 100% occupied during a lease (distinguished from other commercial real estate, such as shopping plazas and multi-tenant office buildings that may struggle to meet certain occupancy rates).
Net Lease – Lowers risk as tenant bears most or all responsibility for maintenance, taxes, and insurance
- Century selects “triple net” or NNN properties. Some are “absolute net” with zero landlord responsibilities and others are triple net leases where the landlord has minimal responsibilities (i.e. roof and structure on a new construction property).
Real Estate Considerations:
Quality Real Estate – Enhances long-term value and increases likelihood of renewal
- Century carefully evaluates the market, demographics, location, and other considerations when selecting a property.
- Century closely manages its properties to refinance, renew leases, and re-tenant when necessary.
Diverse Asset Portfolio – Encourages repeat investments in our limited partnerships
- Many of our partners are repeat investors. By continuing to invest in multiple offerings, these partners are invested in income producing real estate in various regions of the country and in a variety of different industries.
Value – Competitive acquisition pricing maximizes return to partners
- Century prides itself on working the market extremely hard to find excellent values among the vast commercial real estate opportunities that exist. With a strong reputation in the net lease real estate community, we are well positioned to close on deals that provide attractive returns to our investors.
Long-term Lease/Rent Increases – Stability and increased cash flow
- Initial lease terms of approximately 10 years or more enables predictable cash flow.
- Rent escalations during the lease term (and later renewals) often lead to increasing cash returns.
Smart Financing – Maximizes cash flow, tax advantages, and predictability
- Century typically uses low leverage and a 10-year fixed rate to maintain a conservative and predictable return.
Tax Advantages – Significant tax advantages achieved from strategic model
- Financing generates tax deductible interest expense.
- Gradual write-off of the cost of buildings, land improvements (e.g. parking lots), and other fees and costs generates tax deductible depreciation and amortization expense.