Like most folks here suggested, one would spend 2 mil cash on some high quality (e.g. Walgreen, Jack in the box, bank(BOA, Chase...etc), other S&P highly rated corps........etc.)/high return (50% or 100% -- e.g. REO...etc.) NNN commercial.
For example, a REO can include a new Walgreen (if open-can be flipped for fast return or keep for long term tax and appreciation), new Jack in the box (if open - same exit strategy), a out lot for bank ground lease (need to be leased for short term or long term profit ), and some vacant brand new class A retail space (vannila shell- need to be leased for short term or long term profit). The pros of this example is quick return after flipping (here are Walgreen and JIAB). The cons are vacant spaces of this example will have holding risk involved - time, tenant incentive/allowance, listing costs..etc.
Sep 26, 2010