Krystal Company Not Paying Rent / Bankruptcy?
UPDATE 1/23/20
As you know, Krystal has filed Chapter 11. We have a Krystal landlord creditor group forming. To explore joining, please go HERE
UPDATE 1/20/20
On January 19, 2020, The Krystal Company, LLC and its affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. more info
IF YOU ARE A KRYSTAL PROPERTY OWNER….. contact us to be put in touch with other Krystal owners who are organizing as a creditor group.
WTF???
12/4/19
A client owns a couple year old Krystal Company net lease deal with over a decade left on the lease. They stopped paying rent in November and said the store is "under review". Obviously, this reason and/or most reasons for that matter does not give them the right to not pay rent. We have checked and are watching the news and see they are going through management changes. However….
Anybody else having rent payment issues with Krystal? Any rumors of bankruptcy?
The lease is with the parent company and glad it is not some 2 or 5 unit sheltered LLC.
Who Pays the Rent matters…..
NNN 1031 Investments - Tractor Supply Company TSC Deals
Here is a quick video from the 1031 Exchange Passive Income & Investment Series about NNN Tractor Supply Investments.
Investing in TSC NNN Deals - Thomas takes a look at Tractor Supply Triple Net property investments for 1031 Exchanges.
FREE 1031 NNN CONSULTATION
Speak with our founder: Thomas Morgan, CCIM Click to Claim
NNN Properties - What Price Should I Offer?
When making an offer on triple net property you should first assess the asking price relative to the market.
If the NNN property is priced right, a good first offer is 90% + of ask price. This will still allow room for you to get a deal on the NNN property but also ensure the seller responds. Thomas Morgan, CCIM of 1031Navigator.com shares some offer info on a $6MM+ NNN 24 year CVS NNN property he is working on.
For a FREE 1031 Strategy Session call 1-866-539-1777 or go here.
1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time.
Our focused expertise, experience and daily triple net market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty. 1031 Navigator has been involved with over half a billion dollars of 1031 Exchange NNN Properties in over 30 states.
1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in passive income investments.
For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit:
5 things to look out for when buying a Dollar General 1031 Exchange
3.35% cap rate - #WTF Why and Who would pay this? - NNN Ground Lease
Deal Roulette - NNN Dunkin Donut in PHX
What nearby deal is a good NNN real estate investment?
TMO plays a game of deal roulette and looks at a net leased NNN Dunkin Donuts property for sale with 9 years on a absolute triple net lease.
It is a nice NNN building in downtown Phoenix, an attractive piece of real estate. It features a great location on 16th St and Bethany Home Road NNN Dunkin Donut For Sale which is quite a busy intersection with high traffic volume and a number of other properties nearby.
However, it has pretty aggressive cap rate and high per square foot rate, but it looks like it could be a good deal.
The price is $2,375,000
Deal Roulette rating is A- to B+.
99 Pitfalls and Mistakes of 1031 Exchanges
Make sure you don't mess up your 1031 exchange.
Learn about the common 1031 mistakes and errors people have made.
About the NNN Dunkin Donut For Sale Tenant:
Dunkin’ Brands Group, Inc., together with its subsidiaries, owns, operates, and franchises quick service restaurants under NNN Dunkin’ Donuts worldwide. The company operates in four segments: NNN Dunkin’ Donuts U.S., NNN Dunkin’ Donuts International, Baskin-Robbins International, and Baskin-Robbins U.S. Its restaurants offer hot and cold coffee, donuts, bagels, muffins and sandwiches, hard-serve ice cream, frozen beverages, baked goods, and other products. As of February 10, 2014, the company had approximately 11,000 Dunkin’ Donuts restaurants and 7,300 Baskin-Robbins restaurants, which are primarily owned and operated by approximately 2,000 franchisees, licensees, and joint venture partners. Dunkin’ Brands Group, Inc is publicly traded on the NASDAQ (DNKN) with a market capitalization in excess of $4.5 billion.
Deal Hunting - 1031 Exchange Replacement Property
I’m in Northeast Boulder Colorado hunting for a 1031 exchange replacement property.
Within a few blocks of me, I had a choice of an Office Condo, Industrial Land, and an Office Building with potential redevelopment opportunity.
I chose the third option as it seems to be the best location and have the most upside along with cashflow:
- 3000 Pearl Street cor 30th Street (1031 Replacement Property Link)
- $3,250,000
- 13,000 SF Bldg
- Office Building with potential redevelopment opportunity
- $250 / foot
- 4 story building redevelopment possibility of 70,000 SF in total
1031 Exchange Replacement Property near the following:
- Hyatt
- Barnes and Noble
- Chase bank
- Whole Foods
- Target
Overall, it’s a solid 1031 opportunity for those looking for 1031 exchange replacement property.
Put $7,967.31 in your pocket!
Learn about how a guy got paid $7,967.31 when he did his 1031 exchange.
BONUS: Find out how to do a 1031 exchange for FREE.
Deal Analysis: 1031 NNN Investment
Current 1031 NNN Buy Need for VIP Client
Just in.... 1031 NNN Property Want/Need.... This VIP client is the son-in-law of a long time Exclusive client. We have sold his father-in-law almost $30M worth of NNN properties in several states over the years. (Find out about the VIP and Exclusive Buyer programs here)
“Hey Thomas, I have 600k to 800k laying around that I need to get out of the bank and into an income property. Can finance if needed up to, let’s say, $1.5M. It is a partial 1031 exchange so would like to do something sooner than later. I like what you found my father-in-law for his 1031 exchanges and other investments. The triple net properties really appeal to me. Would like to get as high as cap rate as possible, can go anywhere in US. OK with some risk as I am still young and not afraid to get after it if needed. However, would not mind sitting back and just collecting a monthly check! Thanks, AG”
Today’s Deal Rundown
Possibilities
MAYBE - Denny’s in Ohio, $1.76M 6.25% cap rate. Pros: Advertised as absolute net with 13 years on term and strong store sales. Good demographics. Larger, almost 1 acre lot. Strong traffic counts of 31k. Cons: old building - 1970 Status: confirming who guarantees lease and last remodel and to what extent.
MAYBE - 7 year leaseback Boise NNN office $1.16M Pros: curb appeal, 7 year dress lease, 7% cap ask price, $200 psf, downtown location, high population growth, decent size western MSA, nice bite size deal Cons: small .28 acre lot, tenant strength Status: checking on who tenant is, needs more in depth location and market rent analysis
OF INTEREST - 15 year Grease Monkey in IL Pros: new 15 year absolute net lease, low price point of $620k, under $200 psf, corporate lease, 10% bumps, new branding and remodel. Cons: maybe franchisor/franchisee issues, single use building, lot size unknown (for now), unable to assess exact location
Passed On
PASS - 20 year NNN Salad N Go PHX $1.28M @ 6.8% cap Pros: nice long term absolute net lease. Good location. 2% annual bumps after year three. Cons: small building size of 677 sf puts sale price psf at $1,890! Also puts rent at $128 psf annually! Yikes! Also only has operator guarantees.
PASS - Verizon NC - 9 years left on 11 year lease $1.74M 6.25% cap rate Pros: 9 years left with 600 unit operator. Advertised as NNN lease. New construction 2013. Good highway frontage near Wal-mart. Close to the Western Carolina University, having more than 10,000 students. Cons: high psf of $500. Negative population growth for area. Boonies of NC. Town of only 2,500 people (more in outskirts but still small). Away from main population base and highways especially for a 6.25% cap rate. Flat lease with only 5% bumps in options. $31 psf net rent which would be hard to replace.
PASS - Chase Bank Ohio $600k Pros: long time operation at this location, 26 years, under $200 psf, ok cap for national bank at 6.75%, low $13 psf rent, Chase remodeled in 2015 Cons: 1988 construction, some landlord responsibility, only 4 years left on lease, negative population growth
Off to a good start! However, amazing how many NNN deals look great on the surface only to find out they have major flaws.