We fund 100% of total development costs for developers constructing single-tenant retail developments from $1 million to $25 million through a Phase-Funded Forward Purchase program.
Developers with a tenant-approved site and executed lease/LOI may submit a package to National Retail Properties for review. Once the project’s cap rate and purchase price are agreed upon, we enter into a development agreement with the developer outlining all terms, roles and responsibilities in the transaction.
At closing for the subject land, National Retail Properties reimburses the developer for all pursuit costs. During construction, the developer submits monthly construction draw requests, which are funded by National Retail Properties. Upon completion and rent commencement by the tenant, we make final payment to the developer for any remaining amounts, less accrued construction period interest.
Benefits to the Developer
Through our Developer Finance Program, there is no need for the developer to raise or contribute equity, or secure bank construction financing, because we provide 100% LTC construction financing. The developer receives typical development fees and profit, as opposed to the earnings received in straight fee development deals.
The developer also realizes significant costs savings by eliminating lender fees, as well as the need for an appraisal and a second closing–further saving on disposition fees, attorney fees, transfer taxes, etc. The developer’s personal liability is limited to providing performance and cost overrun guarantees.
As a $8+ Billion publicly-traded REIT, our access to capital allows us to provide competitive rates and a certainty of closing.
For more information about our program, please contact:
Director of Acquisitions