Strategic growth
Portfolio Growth
Nova Net Lease intends to primarily acquire properties through sale-leaseback transactions with experienced operators in the cannabis industry and expects to lease its properties on a triple-net lease basis with annual rental rate increases. Pursuing a disciplined growth strategy, Nova invest in high quality properties under long-term triple-net leases with licensed tenants in the state regulated cannabis industry, however, Nova Net Lease will acquire assets which do not meet these parameters if management determines that such acquisitions are in the best interests of the REIT.
Additionally, Nova seeks to acquire properties occupied by quality tenants operating in the regulated medical and recreational cannabis industry focused on cultivation, processing and/or grow operations. Specialized retail facilities in the form of dispensaries are also of interest to Nova for portfolio growth and diversification. Growth objectives with be achieved through a differentiated, multi-faceted investment strategy and to facilitate acquisition-based growth by maintaining and building extensive relationships, structuring and managing our portfolio with disciplined underwriting and risk management, access to capital while maintaining a conservative capital structure and a balance sheet positioned for growth.
Sale-Leasebacks
Sale-leaseback transactions allow Nova Net Lease to acquire a commercial property used by the seller with a simultaneous long-term net lease of the property back to the seller. In sale-leaseback transactions, we are able to set rents at sustainable levels and obtain long-term lease commitments from tenants.
Existing Stabilized Leases
In existing stabilized lease transactions, Nova acquires net leased operating assets subject to existing long-term leases through our relationships with current owners, our extensive brokerage network and/or our developer relationships.
Build-To-Suit
In build-to-suit transactions, the landlord will construct a property for the specific needs of a particular tenant, and the tenant will lease the building upon successful completion of construction.
Reverse Build-to-Suit
In reverse build-to-suit transactions, the tenant acts as the developer and constructs the property with the project financed by Nova Net Lease. Both build-to-suit and reverse build-to-suit transactions allow Nova to acquire the property at lower cost in exchange for long lease terms and higher entry capitalization rates.
Pre-Sale Arrangements
In a pre-sale arrangement, Nova Net Lease will enter into agreements with experienced developers who will construct properties using their own financing sources with the intention that Nova will purchase the asset from the developer upon satisfactory completion, licensing and lease-up of the property with approved tenants. Pre-sale arrangements allow the REIT to acquire properties in new and existing markets at a potentially lower cost while shifting the development, construction, and lease-up risks to the third-party developer.