The final regulations allow for some triple net leases to co-exist with other leases. The example provided reflects something to a ratio of 1/3 (triple net) to 2/3 (non-triple net).
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When would “triple net” lease arrangements work in an OZ?
Under what circumstances could an investor get this approved in an OZ?
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Triple net leases are not trade or business property, so any such real estate couldn't be QOZBP. This poses major compliance issues. I do not believe it's practical for OZ property to feature NNN leases, unless the QOF or QOZB manages an entire portfolio of NNN properties in OZs. That might be considered a trade or business.
There are specific requirements in the regulations. All are easy to satisfy.
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