Reston Town Center Condos

Reston, VA-net lease investors interested only freestanding retail properties do not take into account a very lucrative investment opportunity - Net rental condos retail. These properties offer many advantages as traditional investments net rental. In addition, they allow brokers to investors net of rental (or lease net) for putting money in areas that traditionally have exceeded most budgets of net lease investors: dense urban areas with much strong transition.

"Overall, retail condo is very well located and have good demographics and drivers very demand," said Harmar Thompson, senior vice president of Lowe Enterprises Real Estate Group. The Los Angeles developer has recently sold the portion of details of his project CityVista in Columbia, SC-based Edens & Avant.

Located in Washington, DC Mount Vernon Triangle neighborhood, the project includes mixed-use 441 condominiums, 244 rental apartments and approximately 116,000 square feet of retail. The project is structured with a system of ownership, "said Thompson, who allows companies to sell parts Lowe's project to monetize the other components. A 55,000 square foot Safeway anchors CityVista and was part of the retail condominium Edens & Avant acquired.

As traditional investments net lease, net lease retail condos are rented to tenants who are committed to a long term lease, usually more than 10 years, and as long as 25 years with rent increases over the term lease. The tenant is responsible for paying the rent so that some or all of the operating costs of the building, such as taxes, insurance premiums, repairs and utilities.

Store value
Most condos are located in retail business districts, but retail condos can also be found in the suburbs. Cities like New York, Chicago, Boston, San Francisco and Washington DC have the largest concentrations of retail condos, but smaller cities such as Seattle, Denver and Charlotte, North Carolina also have retail condos.

Over the last five years, over 20 billion dollars in retail condos changed hands in the U.S. - and only in urban areas, according to Real Capital Analytics, a York-based firm New search. Although the total includes deals that over $ 5 million, a significant portion of retail condos are well below the $ 5 million mark, making retail condos available to a wide range of investors.

The real estate assets in urban areas tend to retain their value better than assets in suburban, urban transit more attractive to retail investors net rental. However, most investors were net rental unaffordable for the urban market because investments are available whole buildings with price tags in the tens of millions if not hundreds of millions.

The vast majority of retail condos are part of mixed-use buildings. In general, they occupy the floor of vertical mixed-use projects with office, hotel or residential above retail, and sometimes all three. They can also be found in the downtown projects in suburban areas. Retail condos range in size from as little as 500 square feet to 50,000 square meters or more.

The difference between a mixed-use project types and includes retail condos is the ownership structure. Developers choose to go to the end retail condo road to implementing a scheme on their condo projects, which essentially carves the different uses in the project in as many pieces of the willingness of developers. retail condos can be sold to an investor or a buyer who intends to occupy the space. Retailers occupying retail condos are not only the mother-and-pop retailers is, large national retailers also sign l.