The ESS Group specializes exclusively in 1031 exchange into triple net lease — sourcing off-market NNN replacement properties, reviewing every lease in detail, and closing within your 180-day window.
NNN is the most popular 1031 replacement asset class for a reason. Here's what we bring to every exchange.
We start sourcing your 1031 NNN replacement property before your relinquished property closes. By the time your 45-day clock starts, we've already matched your criteria against live off-market inventory — so the deadline is a formality, not a race.
NNN 1031 replacement properties are backed by Fortune 500 tenants — McDonald's, Starbucks, Dollar General, CVS, AutoZone. The rent is guaranteed by the corporate parent, not a franchisee or individual operator. No tenant management. No maintenance calls.
Every 1031 NNN lease we represent is reviewed clause-by-clause — every exhibit, every rider. Hidden landlord obligations and unfavorable renewal terms get caught before you're committed.
The best NNN 1031 properties never reach LoopNet. Our broker relationships and developer pipeline produce off-market deal flow that other 1031 buyers can't access — giving you options that aren't on every other investor's radar.
A properly structured 1031 exchange defers 100% of your capital gains and depreciation recapture. Combined with NNN passive income and cost segregation depreciation on the replacement property, you can transform a tax event into a wealth-building milestone.
Our buyer's broker compensation is paid by the seller — standard practice in commercial real estate. You get specialized 1031 NNN advisory, off-market deal access, thorough lease review, and full transaction management at no out-of-pocket cost.
Typical cap rates and lease parameters for investment-grade NNN replacement properties. Off-market inventory available across all categories.
| Tenant | Credit | Typical Lease Term | Cap Rate Range |
|---|---|---|---|
| McDonald's | BBB+ (S&P) | 20 yr | 4.25–4.75% |
| Starbucks | BBB+ (S&P) | 10–15 yr | 4.50–5.25% |
| Dollar General | BBB (S&P) | 15 yr | 5.25–6.00% |
| CVS Pharmacy | BBB (S&P) | 20–25 yr | 4.75–5.50% |
| AutoZone | BBB (S&P) | 15–20 yr | 5.00–5.75% |
| Chick-fil-A | Non-rated (strong) | 20 yr | 4.00–4.50% |
| 7-Eleven | A– (S&P) | 15–20 yr | 4.50–5.25% |
| Dutch Bros | Non-rated | 15 yr | 5.25–6.00% |
Cap rates are market estimates and vary by location, lease vintage, and market conditions. Contact us for current pricing on specific properties.
From first call to rent check — our 1031 NNN process is built around your 45-day and 180-day deadlines.
A 20-minute call to understand your exchange: relinquished property value, target cap rate, preferred tenants, geography, and timeline. We begin sourcing before you close.
We pull current off-market 1031 NNN inventory that matches your criteria — properties from our broker network and developer pipeline not visible on public platforms.
Every property you're seriously considering gets a thorough clause-by-clause lease review. Absolute NNN confirmation, escalation structure, renewal terms, and any landlord obligations identified before you commit.
We formally identify your replacement property with your QI by Day 45, negotiate the purchase contract, and manage lender coordination if financing is involved.
Your QI directs proceeds from your relinquished property sale to fund the NNN acquisition. Capital gains fully deferred. Passive NNN income begins.
Yes. As long as the NNN property is held for investment or business use (not personal use), it qualifies as like-kind to virtually any other investment real estate you're selling. Residential rental properties, commercial buildings, land, and industrial can all exchange into NNN.
This is why starting before your relinquished property closes is critical. Working with a specialist who maintains live off-market NNN inventory dramatically reduces this risk. You can also identify up to three properties under the three-property rule — giving yourself backup options.
Most single-tenant NNN properties price between $1.5M and $8M+ depending on the tenant and market. Dollar General and dollar store NNNs often start around $1.5M–$2.5M. McDonald's and pharmacy NNNs typically start around $2.5M–$5M+. We work with exchange buyers at any level in this range.
No. You can split your proceeds across multiple NNN properties under the three-property rule. For example, a $5M exchange could be allocated into two separate NNN properties at $2.5M each — providing tenant and geographic diversification.