SINGLE TENANT RETAIL PRIORITY LIST

The Single Tenant Retail Priority List is a maintained inventory of convenience stores, pharmacies, quick-service restaurants, and other daily needs retail properties that are already screened for like-kind eligibility, giving a Boston, MA investor a running start on identification rather than beginning a search from a blank page. Properties on the list carry credit tenants, established operating histories, and lease structures that have already been reviewed for the kind of documentation gaps that can slow down diligence during a compressed forty-five-day window.

Each priority list entry is built around a lease abstract, a tenant credit summary, a location and trade area assessment, and available financial performance history. Because single tenant retail assets are frequently underwritten primarily on lease and credit quality rather than on the physical building itself, having this data assembled before a specific investor engages materially shortens the time between first review and a decision on whether to include a property on a written identification notice.

What screening actually checks before a property is listed

Screening for the priority list looks at four things before a property is added: whether the real property itself qualifies as like-kind replacement property under Section 1031, whether the lease is structured as an absolute or triple net arrangement that limits ongoing landlord responsibility, whether the tenant or its corporate guarantor carries adequate credit strength for the remaining lease term, and whether title and basic property condition are clean enough that a standard closing timeline is realistic. Properties that fail any of these checks are not included, which is why priority list inventory tends to move through diligence faster than a property sourced cold from a general market search.

Turning priority list interest into a compliant identification

Selecting properties from the priority list does not by itself satisfy the identification requirement. A written identification notice describing each selected property by address or legal description still has to be prepared and delivered to the qualified intermediary before the forty-five-day deadline. Because priority list properties are actively marketed and can go under agreement with other buyers at any time, investors working within a tight window are generally encouraged to identify more than one candidate, whether under the three-property rule or the two hundred percent rule, so a single property going off the market does not leave the exchange without a viable path forward.

Massachusetts investors should also consider that gain deferred through a properly structured exchange remains subject to Massachusetts income tax, including the four percent Fair Share surtax on income above one million dollars, once eventually recognized. This service provides property sourcing and diligence support; it does not constitute tax or legal advice, and property availability can change without notice.

Because priority list properties are already screened before an investor engages, the marginal diligence work required at the investor level tends to focus on confirming the screening findings rather than starting from a blank slate. This still means reviewing the actual lease document, not just the abstract, confirming the tenant's operating history at the specific location rather than relying solely on brand reputation, and independently verifying title through the investor's own closing attorney. Pre-screening reduces the odds of a disqualifying surprise late in the process, but it does not substitute for an investor's own diligence obligations, particularly given the compressed timeline a 1031 exchange imposes on due diligence relative to a conventional purchase.

Financing for single tenant retail properties is generally more standardized than for other commercial property types, since lenders are familiar underwriting long-term net leases to credit tenants. Loan terms often track the remaining lease term fairly closely, which means a property with a short lease remaining and no confirmed renewal may face more restrictive financing terms than a comparable property with ten or more years remaining on the lease. Priority list entries include remaining lease term prominently for this reason, since it affects both the leasing risk and the financing terms an investor should expect when evaluating a candidate.