Single-tenant net lease stock in this market clusters in two very different corridors: the Kimball Junction retail pad sites along the highway frontage, and the smaller-format Main Street storefronts inside Old Town Park City. A sourcing assignment treats these as separate candidate pools rather than one search, since lease structure, tenant type, and pricing differ sharply between them. Scoping the search this way from the start avoids comparing two properties that were never really priced against each other.
Where NNN and STNL Stock Sits Locally
Kimball Junction carries the bulk of true triple net pad sites, typically national or regional tenants on ground leases or long-term absolute net structures. Main Street candidates are smaller footprint, often locally operated tenants on shorter terms, and they trade more on location scarcity than on lease credit quality.
A sourcing package built for a Park City exchange notes which corridor a candidate sits in early, since a lender comparing a national-credit ground lease against a local-tenant storefront lease will ask different underwriting questions for each.
Turnover in either corridor is infrequent enough that a candidate list is often built over several weeks of tracking rather than pulled together from active listings alone.
Lease Abstract and Credit Review
Before a net lease candidate is added to the identification list, the lease is abstracted into a short-form package covering the terms a lender and advisor need without reading the full document. That package includes:
- remaining primary term and option periods
- rent escalation schedule
- tenant reporting or financial disclosure obligations
- landlord responsibilities carved out of the net structure
- co-tenancy or exclusivity clauses
- estoppel and SNDA status
The abstract is delivered as a two-page summary rather than the full lease document, so the lender and advisor can react quickly without waiting on legal review of a fifty-page agreement.
Cap Rate and Term Comparison
Net lease pricing in this market moves with remaining lease term more than with tenant name recognition, so a candidate with a shorter remaining term is scored against one with a longer term even when both carry similar credit. Cap rate comparison across corridors is done side by side rather than in isolation, since a Kimball Junction ground lease and a Main Street storefront rarely price on the same curve.
A candidate priced aggressively on a short remaining term can still make sense if the underlying real estate has strong redevelopment potential, but that judgment call belongs to the investor and advisor, not to the pricing comparison alone.
Assembling the Bid Package for a Net Lease Purchase
Once a candidate clears the lease abstract review, the bid package is assembled for submission: purchase and sale agreement markup, financing contingency language matched to the lender's timeline, and a diligence period sized to the forty-five-day identification clock rather than a generic default. This package is what moves to the qualified intermediary once the property is named.
A seller who has held a net lease investment for decades sometimes expects a longer closing runway than the exchange period allows, so that expectation is set during the offer stage rather than negotiated after the identification notice has already gone out.
Post-Closing Landlord Obligations
Even under an absolute net lease, some landlord obligations survive closing, roof and structure carve-outs being the most common. Those carve-outs are documented in the sourcing package before closing so the investor is not discovering a maintenance obligation for the first time after the exchange is complete.
A reserve estimate for these carve-outs is included in the closing package as well, since an undisclosed roof age can turn a clean net lease purchase into an unplanned capital expense within the first year of ownership.
Common 1031 Exchange Questions
Which corridor has more true triple net inventory, Kimball Junction or Main Street?
Kimball Junction carries most of the true triple net pad sites with national or regional tenants, while Main Street tends toward smaller local-tenant leases on shorter terms. A sourcing search usually treats them as separate candidate pools rather than one list.
Does a shorter remaining lease term disqualify a candidate?
It does not disqualify a candidate for exchange purposes, but it does change the pricing and financing conversation since lenders and buyers both price remaining term into the deal. A shorter term simply needs to be flagged early rather than discovered during underwriting.
What roof and structure obligations typically survive a net lease closing?
Even under an absolute net structure, many leases carve out roof, structure, and sometimes parking lot maintenance as landlord responsibilities. Those carve-outs are pulled from the lease abstract and documented before closing so they are not a surprise afterward.
How is a net lease bid package different from a standard purchase offer?
The package adds a diligence period sized to the forty-five-day identification window and financing contingency language matched to the lender's underwriting timeline, rather than using a generic offer template. That sizing is what keeps the exchange calendar intact.
Can a Main Street storefront lease qualify as replacement property the same as a Kimball Junction pad site?
Both qualify as like-kind real estate under the exchange rules; the difference is in underwriting and pricing, not eligibility. A storefront lease is evaluated on location scarcity and tenant history rather than national credit standing, and that evaluation is documented the same way regardless of corridor.
