Posted by ray@lcorn on November 07, 2002 at 08:24:51:
Chris,
I had to go back and read the article to figure out what you were asking. For those that haven’t seen the article, the link is http://www.creonline.com/articles/art-148.html
The comment about a master lease was in context of an attempt to explain what “triple net” lease really is. The point I was trying to make is while a multi-tenant building may have leases that pass throught the costs of maintenance, taxes and insurance, the owner still has to perform the functions, and therefore the property is not a “hands-free” investmnent.
That’s not a true NNN lease property as the term is most often used. I drew the analogy that perhaps you could acheive that in a multi-tenant building if your only tenant was a master lessee that took care of everything for you. As I read it now I think it’s a poor analogy. I did not mean to imply that the only way to get all rents due was through a master lease. In fact, I don’t like the idea of a master lease at all, and tried to make the point that it is not a good way for an owner to maximize returns.
Sorry for the confusion.
ray