Development

Triple Net Ground Up Development

Rather than buying an existing net lease asset, some San Diego, CA investors prefer to create yield by developing a new single tenant building from the ground up, securing a credit tenant's letter of intent before construction begins so the finished project already has a lease and a clear exit path. We guide clients through site selection, entitlement review, tenant letter of intent negotiation, and construction budgeting, with an eye toward disposition planning so the completed, stabilized asset is positioned as a future 1031 exchange replacement property for another investor. This strategy is not itself a 1031 exchange while the property is being built and leased, since ground up development is generally treated as an active development project rather than a like kind acquisition, but it gives San Diego, CA developers a defined runway toward a future exchange or outright sale once the tenant is in place and the property is stabilized.

Ground up development pathways for San Diego, CA clients with a known exit strategy built in from day one.

Our Process

1

Vet candidate sites for zoning, access, and visibility

2

Negotiate a tenant letter of intent before breaking ground

3

Build a construction budget with contingency reserves

4

Track contractor draws against the approved budget

5

Coordinate lease execution ahead of certificate of occupancy

6

Plan disposition or long term hold once the asset stabilizes

Why This Matters

Our triple net ground up development service helps San Diego investors navigate the complexities of 1031 exchanges with expert guidance and personalized support. We coordinate with qualified intermediaries, lenders, and tax advisors to ensure your exchange stays on track and meets every deadline.

Service Focus

DevelopmentGround UpNNNBuild to SuitSan Diego

Key Benefits

  • Expert coordination with QIs and lenders
  • Nationwide property identification
  • Deadline management and timeline tracking
  • San Diego market expertise

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Frequently Asked Questions

Common questions about triple net ground up development in San Diego

Do you help locate tenants?+

Yes, we target credit tenants actively expanding in San Diego, CA and beyond, then work to secure a signed letter of intent before construction begins, since a pre leased project is materially easier to finance and later sell or exchange.

Can I hold or sell after completion?+

We outline both paths so San Diego, CA investors can recycle capital into a new development immediately or keep the completed, tenant occupied asset as a long term net lease holding.

How do you control construction risk?+

We build contingency budgets and track contractor draws closely so San Diego, CA projects stay on plan, since cost overruns or delays directly affect the return once the finished asset is sold or exchanged.

Is ground up construction itself part of a 1031 exchange?+

Generally not on its own; a standard 1031 exchange requires acquiring existing like kind property within one hundred eighty days, so speculative ground up development undertaken outside that structure is typically treated as a separate active project rather than exchange property, distinct from an improvement exchange where construction happens inside the exchange itself.

Can the completed property later become someone else's exchange property?+

Yes, a stabilized, tenant occupied building developed by a San Diego, CA developer is a common target for other investors running a standard 1031 exchange, since a newly built single tenant asset with a long lease term is attractive replacement property for buyers seeking predictable income.

What tenant categories work best for ground up single tenant builds?+

We commonly see demand from quick service restaurants, pharmacy, medical, and essential service retail tenants for San Diego, CA ground up projects, since these categories tend to sign longer leases with contractual escalations that appeal to future net lease buyers.

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Identification

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Contact

Discuss Triple Net Ground Up Development

We focus on matching triple net ground up development opportunities across all 50 states while coordinating with Qualified Intermediaries and lenders. We are not a Qualified Intermediary.

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