How Persistence and Strategic Outreach Secured a Premier Triple-Net Industrial Investment

A small family office client engaged me to source high-quality triple-net lease (NNN) industrial property to diversify their portfolio. Their criteria were clear: strong credit tenant, long-term stability, hands-off management, and solid yield in a reliable location. We searched statewide—from Northern California down to San Diego—for months, touring and diligencing numerous opportunities along the way.

Then we found the ideal fit right here in Orange County: a compact 15,000-square-foot industrial building in Placentia, occupied by a major national (actually international) credit tenant with a long history in the space. The tenant had invested heavily in on-site and off-site infrastructure—specialized improvements critical to their operations—making relocation extremely difficult and costly. This "stickiness" made the property a standout for long-term tenancy.

The Challenge: A Formidable Right of First Refusal

We submitted a strong offer, but the lease included a right of first refusal (ROFR) for the tenant. On the 30th day, they exercised it—matching our terms and appearing to kill the deal. For many buyers, this would have been game over.

But experience told me otherwise. As a former manager of a division of international publicly traded company, I understood corporate capital allocation: large multinationals (this one a Chicago-headquartered billion-dollar organization) rarely deploy $3 million+ for a small, single-asset real estate purchase. They prefer larger-scale investments with higher returns, preferring not to tie up capital in owned facilities when leasing is much more functional.

My Strategy: Direct Outreach and Creative Negotiation

I immediately called the tenant's CEO, left a thoughtful message, and quickly connected with their real estate team. I arranged an in-person meeting where their executives flew in from Chicago to meet my client and me.

The conversation revealed their true motivation: not ownership, but protection. They exercised the ROFR to block a potential competitor from acquiring the building and threatening their operations due to the specialized infrastructure. They had no interest in actually buying it.

We addressed their concerns head-on:

- Provided assurances (backed by an affidavit) that my clients were private family investors with no affiliation to any competitors they named.

- Built trust through transparency about the buyer's passive, long-term investment approach.

The breakthrough? As part of relinquishing the ROFR, I negotiated an extension of their existing lease by 5 additional years—boosting the remaining term to nearly 7 years total + extensions options..

The Results: A Hands-Off Gem with Exceptional Performance

We closed the acquisition successfully. The property has proven to be an outstanding performer: true triple-net (tenant covers taxes, insurance, maintenance), rock-solid international credit tenant, minimal management, and strong, predictable cash flow. Best of all, it's local to the family office in Orange County—convenient oversight without travel headaches.

The client was thrilled—not only with the asset but with the creative problem-solving that turned an apparent loss into a major win. We've since done additional business together, a testament to the trust built.

Key Takeaway

In NNN industrial investments, especially with credit tenants and ROFR hurdles, persistence, deep market knowledge, and understanding corporate behavior can unlock deals others walk away from. It's not just finding the property—it's overcoming obstacles to deliver exceptional, low-risk opportunities.

"Cameron didn’t just find the property—he overcame major obstacles to deliver exceptional investment and, most importantly peace of mind.”