LEASE STRATEGY


Buying high quality, income-producing properties is a key factor in creating a diversified portfolio of mission critical real estate assets. In addition, executing on a disciplined leasing strategy with creditworthy tenants is also critically important to the long-term success of the portfolio. CVMC REIT II intends to employ a long-term, net lease strategy in order to help mitigate risk, provide greater certainty of rental income and maximize value for fund shareholders.1

Net Lease
A “net lease” is a lease structure that generally passes responsibility and expense risk of taxes, insurance and common area maintenance to the tenant which helps provide a more predictable rental income stream over time.

Long Term Leases
Long term leases (expected to average approximately 10+ years) help provide stable rental income over time and also help mitigate cyclical market risk by reducing the need to reset lease rates.

Creditworthy Tenants
CVMC REIT II is focused on acquiring properties leased to established, creditworthy tenants with high operating incomes which we believe will help provide greater certainty of lease payments and more stabilized occupancy over time.

Contractual Rent Escalators
Contractual rent escalators are generally built into the lease structure such that a tenant’s rent will increase by a certain percentage each year, thus providing greater income to CVMC REIT II as time goes on, as well as a hedge against potential inflation.



 



1 There is no assurance CVMC REIT II will meet its objectives.