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When would “triple net” lease arrangements work in an OZ?

Under what circumstances could an investor get this approved in an OZ?


Answers
  • Maria De Los Angeles Rivera
    March 13, 2020

    The final regulations allow for some triple net leases to co-exist with other leases. The example provided reflects something to a ratio of 1/3 (triple net) to 2/3 (non-triple net).

  • Matthew Rappaport
    March 04, 2020

    Triple net leases are not trade or business property, so any such real estate couldn't be QOZBP. This poses major compliance issues. I do not believe it's practical for OZ property to feature NNN leases, unless the QOF or QOZB manages an entire portfolio of NNN properties in OZs. That might be considered a trade or business.

  • Brad Cohen
    March 03, 2020

    There are specific requirements in the regulations. All are easy to satisfy.

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