RealyNow identifies a property NN-leased Starbucks for a 10-year duration with rent increases. Starbucks Corporation is rated BBB+, or investment grade, by Standard and Poor's. Starbucks is also considered an essential business during the pandemic.
RealyNow purchases the property and issues shares that represent ownership in the building and land leased to Starbucks. RealyNow members purchase shares through the RN app.
Starbucks Corporation pays rent to RealyNow; RN distributes that rental income to shareholders' bank accounts monthly as dividends. RealyNow members track their income on the app.
RealyNow members reinvest their rental income in new shares, or spend it as they wish. Shares may also be redeemed on a monthly basis for their original purchase price.
Toward the end of the lease, RealyNow endeavors to re-sign Starbucks to a new, long-term lease. RealyNow then seeks to sell the property and distributes any proceeds to shareholders.
*One nationally-traded REIT reports tenant renewal rates of 94.5% for similar properties.
