News & Media

2017’s Greatest Net Lease Challenge

While net lease remains one of the most stable asset classes, volatility and uncertainty in the market will present challenges for the sector.

David Sobelman was invited to write the following article for the January issue of Commercial Property Executive. 

We can all breathe a sigh of relief that the worry and stress of 2016 are over and we can now focus on the year ahead. Politics, interest rates and even sports have made us all wonder what could transpire and should we even try to fathom what the coming year entails. Every interview from our nation’s leading experts, in their respective fields, begins with an explanation on our nation’s micro and macro economies with the words, “I think.”  We’ve all heard it before but give it little attention when it’s spoken. For instance, a moderator asks, “Where are cap rights going in the next twelve months?” and the expert answers, “‘I think they will (insert answer here.)”  Or the moderator asks, “What will happen to commercial real estate values in 2017?” and the expert answers, “I think values will (insert answer here.)”  You get the picture.

But my colleagues and I, who are asked to opine on the state of the overall commercial real estate market and how tangential and outside influences may either impede or bolster the coming real estate cycle, are wondering ourselves how to navigate our and, in some cases, our clients’ decisions in the coming year. With the vast differences in answers to the questions we’re receiving, its clear that pinpointing a specific response is 2017’s greatest challenge. Even Hessam Nadji, president & CEO of Marcus & Millichap (M&M), who is a regular face on national television and a historical proponent of bringing into account the strength of the markets, chose to publicly sell 37,296 shares of M&M stock in the final months of 2016 at a value of roughly $2.5 million.  “I think” that sale may speak volumes to what his real thoughts may be on the coming market cycle.

But what we should all consider is that net lease investments have become an industry in and of themselves. The asset class is seen as one of the most stable types of commercial real estate investment, with as little as 250 basis points of variance from the trough of the recession to the peak of the market. Compared to other asset types, that spread is very manageable for most investors. Additionally, the International Council of Shopping Centers has begun to embrace the product type as it has instituted the N3 conference series around the country: panel discussions that highlight various regional topics focused on net lease assets. ICSC has also established the first education and information session for continuing education (CE) credits at its annual RECon conference in Las Vegas in May. These developments could be a strong indicator that the world’s largest real estate association has now embraced the building type as it has been clearly shown that the issues surrounding that market appeal to the masses. This is drastically different than just 10 years ago when a single-tenant investment was rarely mentioned outside its core practitioners.

2017 will prove to many, in and out of the net lease industry, that even in the most drastic of economic circumstances, a single-tenant property and the growing industry that surrounds the asset type will continue to resonate as the safe haven for landlords and investors. Few investment vehicles, real estate or otherwise, provide the risk-adjusted returns of triple-net lease properties. Add in the opportunity for an appreciating real estate asset and annual returns could far outpace anything in its peer group. But despite its stability, the sector will face its challenges. History has shown that the hurdles of the net lease sector are not solely in the ups and downs of the market, but in attempting to precisely time the market—that is this year’s biggest challenge.

David Sobelman is the founder & CEO of Generation Income Properties (a public net lease REIT) 

GIP2017’s Greatest Net Lease Challenge
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Generations Income Property Competes for SBRE Shark Bowl

Five Small Balance Real Estate (SBRE) Entrepreneurs will compete for a chance for a $100,000 investment at’s live Shark Bowl contest

SBRE industry founder Fairway America today selected five SBRE entrepreneurs to present to a panel of seasoned real estate “sharks” and have an opportunity to receive a commitment from one of Fairway’s proprietary funds for a $100,000 investment. The winner will be required to complete a due diligence process in order to receive the investment.

“We wanted to provide new and emerging SBRE fund managers and entrepreneurs an opportunity to develop a presentation, get up on stage, and hone their pitch,” said Fairway’s CEO Matthew Burk. “Not only will it be great fun, having a legitimate opportunity to receive an investment on the line makes it much more interesting and real. We have some very deserving presenters lined up and I can’t wait to see them pitch.”

The presenters who will be competing at the SBRE Shark Bowl are Brian Lynott from Dweller, Randy King at The Legacy Group, Michael Zajas of Brydant Inc., Aaron Gillingham with Aries Capital Northwest, and David Sobelman from Generation Income Properties.

“This group of presenters represents a great cross-section of the SBRE industry and is an excellent example of the amazing diversity of strategies being executed in the space,” said Burk.

The CapitalFlow Conference will be held annually in Fairway’s home town of Portland OR and is expected to attract leading SBRE entrepreneurs and fund managers from around the United States. The main theme for these entrepreneurs is to enhance their capacity to successfully raise capital for their SBRE deal strategy, which the Shark Bowl is expected to help promote. Burk says that Fairway has borrowed bits and pieces of different formats and structures he seen over the years and amalgamated them into a unique construct.

“The CapitalFlow Conference format has been designed by SBRE fund managers for SBRE fund managers (and syndicators) to meet the core challenges and needs of this underserved group,” said Burk.

In order to continue to help facilitate the growing SBRE community of entrepreneurs and investors, Fairway has created a unique and powerful formula that is unavailable anywhere else. In addition to the Shark Bowl, a mini-version of Fairway’s highly sought-after SBRE Investment Summit, the conference also features deep-dive content on fund management issues, capital raising strategies and tactics, and peer-to-peer experience share.

“We work with SBRE fund managers, syndicators and high net worth investors all over the country,” said Burk, a longtime fund manager and investor who will be one of the panelists of Sharks. “Because we have such a deep understanding of the practical challenges we all face, we’ve engineered the CapitalFlow Conference to provide unequaled take home value to the SBRE entrepreneur.”

Fairway will also be announcing the winner of the 1st Annual SBRE Awards in 5 categories as follows: Fund Manager of the Year, Emerging Fund Manager of the Year, SBRE Entrepreneur of the Year, Syndicator of the Year and the first ever inductees into the SBRE Hall of Fame. Finalists have been named in all categories and most or all of them will be on hand for the awards ceremony.

The event will be held at the Portland Hilton Hotel and Towers in downtown Portland Oregon. Winners of the SBRE Awards will be announced during a lunch ceremony on Friday July 29th and will be immediately followed by the SBRE Shark Bowl. The event will conclude at the Willamette Riverfront Park for the 25th Annual Oregon Brewfest, the oldest and largest gathering of microbreweries in the United States. Registration for the event is still open to SBRE entrepreneurs, fund managers, private lenders, and real estate syndicators, as well as high net worth investors who are interested in learning more about the growing SBRE alternative investment space.

“What really makes it all so powerful are the reasons why we come together in the first place – to engage each other on the challenges, strategies, and opportunities of running an SBRE business,” said Burk. “We share ideas, best practices, successes and failures, what works and what doesn’t without fear of judgment or reprisal from other managers – just mutual trust and respect for what we all have to go through to run a successful SBRE enterprise and create value for investors.”

About Fairway America
Fairway America, LLC is a longtime real estate asset based fund manager and real estate finance advisory firm providing strategic business planning services nationwide to SBRE entrepreneurs around the structure, architecture, and administration of proprietary 506 Regulation D pooled investment funds. Fairway’s related entities manage two proprietary funds, Fairway America Fund VI, LLC, and Fairway America Fund VII LP, each focused on the SBRE space with different asset allocations and investment features. Both funds consider investments nationwide.

About is an online education, information and match-making site that exclusively lists small balance real estate investment opportunities. Created by Fairway America, provides entrepreneurs and investors with education and connectivity to better capitalize and grow an SBRE enterprise. From connection with investors to strategic capital raising plans to live events, is the definitive resource for SBRE entrepreneurs and accredited investors to understand how to successfully work with one another for mutual benefit and growth.

Neither Fairway America nor is a registered broker-dealer or investment advisor. None of the Fairway companies perform any activities of a broker or investment adviser, including but not limited to, soliciting investors, providing investment advice, negotiating securities transactions or the terms, conditions or provisions of any offering, or recommending the purchase of securities. This press release does not constitute an offer or solicitation to sell securities in any of the companies mentioned, any funds presenting at SBRE Summit events, or any related or associated companies. Investors must not rely on information provided in this press release for investment decisions.

GIPGenerations Income Property Competes for SBRE Shark Bowl
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Inside the First REIT to Go Public Under Regulation A+

David Sobelman, CEO and Founder of Generation Income Properties talked with Commercial Property Executive about the REIT’s unique fundraising strategy and what sets it apart from others in the net lease space.

“In today’s competitive net lease environment, companies in the space need to find ways to set themselves apart. David Sobelman is doing just that with his REIT, Generation Income Properties (GIP), which this year became the first REIT to go public under the SEC’s Regulation A+. A net lease veteran, Sobelman co-founded Calkain Cos. in 2005 before founding GIP, which started out as a private fund. But when he went back to investors asking about starting another fund or becoming a publicly traded REIT, they were interested in the latter.”

You can read the complete article on Commercial Property Executive and see the interview in the video below:

GIPInside the First REIT to Go Public Under Regulation A+
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Huffington Post Highlights First 16 Reg A+ Companies

The Huffington Post highlights the first 16 companies approved under SEC Regulation A+, including Generation Income Properties.

“Ever since President Obama signed the JOBS Act in 2012, the market for equity crowdfunding has grown steadily. Now, in 2016, funding raised through crowdfunding is expected to pass that from venture capital.

At the center of this revolution in business financing are the Securities and Exchange Commission’s recently enacted rules known as Regulation A+, a provision of the JOBS Act that allows companies to generally solicit and raise money from non-accredited investors. Historically, many investment opportunities have only been open to the wealthiest 3% of Americans known as accredited investors. However, the new rules permit nearly anyone to invest in companies spanning a wide range of fields, from real estate to aviation and even medical marijuana.”

You can read the complete article at the Huffington Post.

GIPHuffington Post Highlights First 16 Reg A+ Companies
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Generations Income Properties Featured in Restaurant Finance Monitor

David Sobelman was interviewed for Restaurant Finance Monitor, a monthly publication focused primarily on the restaurant investment industry.

“Sobelman is not a stranger to real estate investing. He’s had his own private fund since 2012, and he’s the managing member, with outside investors. It’s been successful, and his investors wanted to know when he would launch the next one.

“They liked their returns, and they liked me running it,” he said. “I thought we needed to do it bigger the next time around.” He talked to his investors about a publicly traded REIT, and they were in.

“They would have their own shares, trade them when they wanted to, and have some sense of liquidity, as opposed to a fund, which is more arduous to exit,” Sobelman said. “They loved it.” Sobelman himself liked the transparency of public traded REIT, where investors and others could go online and look at filings, and that it would be “extremely scalable.”

Read the complete article on page 3 of Restaurant Finance Monitor.

GIPGenerations Income Properties Featured in Restaurant Finance Monitor
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Net-Leased Pro Aims to Raise Capital for REIT Through Mini-IPO

David Sobelman, Generation Income Properties Founder and CEO, was interviewed by Commercial Real Estate Direct to discuss the launch of the REIT and the unique position it takes in the market.

“David Sobelman, a long-time player in the net-leased real estate business, has launched a REIT. But it’s not like any other REIT, traded or not.

“His Generation Income Properties Inc. takes advantage of Regulation A+, part of the Jumpstart Our Business Startups, or JOBS, Act that was signed into law in 2012. The rule allows investment offerings to be marketed to non-accredited investors in offerings up to $50 million. It also streamlines the registration process by, for instance, not having to register a securities offering in every state that it’s offered.

Generation Income initially aims to raise $20 million through its so-called mini-IPO by selling shares for $5 each through a best-efforts offering, meaning Sobelman will be making his best effort to place shares with investors. In a traditional underwritten stock offering, an investment bank is used as an intermediary and commits to sell a specific number of shares to investors. Shares in the REIT will be traded over the counter.”

With a registration, you can read the complete article on the Commercial Real Estate Direct web site.

GIPNet-Leased Pro Aims to Raise Capital for REIT Through Mini-IPO
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A+ for Strategy

Generation Income Properties was featured in the Business Observer about the launch of the REIT.

“Sobelman’s strategy with Generation Income is to zig where others in commercial real estate zag. That particularly goes for competitors who might have over-reached in the current market rebound, and are too short-term focused.”

You can read the complete story on the Business Observer web site.

GIPA+ for Strategy
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Founder of Tampa REIT Looks Ahead to Multi-Million Dollar Offering

David Sobelman was interviewed by the Tampa Bay Business Journal about the launch of the REIT a few days after the SEC approved the initial public offering.

Sobelman discussed why he started the REIT, the philosophy of investments, future plans and goals.

“Even as Generation Income Properties Inc. begins selling shares in its newly approved $20 million initial public offering, founder David Sobelman is crafting a vision for a much bigger capital raise.

Sobelman, who is chairman and president of Generation, says he anticipates a $300 million to $500 million second offering, likely in 2017.”

“Our goal is to have a $1 billion market cap by 2020 and we think that’s very realistic, based on the scalability and market trends. We feel we have something very different from a REIT perspective and the type of properties we’re investing in.”

You can read the full article on the Tampa Bay Business Journal site.

GIPFounder of Tampa REIT Looks Ahead to Multi-Million Dollar Offering
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Real Estate Firms Test Waters with New Reg A+ Offerings

Generation Income Properties was featured in a Law360 article highlighting the new investment opportunities available under SEC Regulation A+.

“Generation Income Properties Inc., the first real estate investment trust to file a Regulation A+ public offering with the U.S. Securities and Exchange Commission, said Tuesday it had gotten the green light from the SEC to sell shares, and lawyers say more real estate companies are considering such mini initial public offerings due to the lower costs and less burdensome regulatory requirements.

The new version of Regulation A, which went into effect last summer, allows companies to raise more capital than they previously could, and companies…”

You can read the full article (with a Law360 free 7 day trial) on

GIPReal Estate Firms Test Waters with New Reg A+ Offerings
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Generation Income Properties Receives Reg A+ Approval from SEC for REIT

Crowdfund Magazine featured the launch of Generation Income Properties and our approval from the SEC to raise funds through Regulation A+ that allows funding without a variety of wealth criteria for the investor.

“Generation’s founder and CEO David Sobelman, stated in a release that the conservative nature of the investments, as well as the cautious underwriting that will be used for each asset, will cause the aggregate value of the portfolio to increase as the REIT continues to grow.

Generation Income Properties goal is to invest in the top 20 highest density U.S. cities. The company stated that it acquires the most conservative, credit-worthy, long-term real estate assets with the understanding that the underlying real estate is ultimately irreplaceable.”

Read the article at

GIPGeneration Income Properties Receives Reg A+ Approval from SEC for REIT
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