NNN Pro Group Separates From Marcus & Millichap

January 9, 2023

To date, the investment sales group has closed on more than $30 billion of triple-net leased properties in the retail, industrial and office sectors.

Photo by Scott Graham via Unsplash.com

NNN Pro Group, a triple-net investment sales team at Marcus & Millichap, has separated from the national brokerage company effective Jan. 1, 2023, NNN Pro Group announced on Friday, Jan. 6.

Notwithstanding the departure, the two companies reportedly “will continue to maintain a strong working relationship moving forward.”

Financials on the separation were not disclosed, and neither company replied to Commercial Property Executive’s inquiries after further information.

NNN Pro Group team was founded more than 20 years ago by CEO Glen Kunofsky and is co-managed by COO Nicoletti DePaul. To date, it reportedly has closed on more than $30 billion of triple-net leased properties in the retail, industrial and office sectors.

In a prepared statement, Kunofsky said the independent group would be pursing strategic opportunities in addition to its existing advisory and brokerage services and expressed gratitude to Marcus & Millichap and its leadership for two decades of unwavering support.

Also in a prepared statement, Marcus & Millichap COO J.D. Parker added the company’s thanks to Kunofsky and the entire NNN Pro Group for their contributions to Marcus & Millichap over the years.

Mixed picture

The nationwide net-lease market currently features both business-as-usual and unpredictable aspects.

The 2023 Emerging Trends in Real Estate forecast from the Urban Land Institute notes, “Grocery-anchored assets and net lease retail opportunities have dominated the retail investment landscape for most of the past decade. Do not expect this to change in 2023.”

Among desirable net-lease retail properties, the forecast continues, survey respondents especially cited fast-food properties with drive-throughs, “assuming that long-term leases are in place to gold standard, national credit tenants. The challenge one broker told us is one of available product: ‘Everyone is chasing the same thing.’”

But in a third-quarter 2022 report, net-lease specialists The Boulder Group, of Wilmette, Ill., remarked that with Fed rates going up and rising debt costs putting pressure on cap rates for purchasers of net-lease properties, “formerly opportunistic sellers removed properties from the market that were attempting to take advantage of the historically low cap rate environment.”

And as the supply of net-lease properties has decreased, buyers and sellers have struggled to agree on pricing levels. “The expectation from market participants is that the bid ask spread will widen as price discovery plays out in the fourth quarter and into 2023,” the report stated.