The 4 Factors That Define a Bluchip Property



September 5, 2022

Bluchip is transforming the face of CRE. Once the exclusive domain of institutional and qualified investors, this asset class is now open to all—including everyday investors. With Bluchip, individuals of all backgrounds can own a piece of premium CRE—the properties leased by the brands they love most. 

These properties, known as net leases, are considered one of the safest investments available. Equipped with a thorough sourcing process and rigorous vetting criteria, Bluchip identifies commercial real estate with appreciation potential and reliable income streams.

What makes a Bluchip property so desirable? Here, we dive into four factors that set Bluchip investment opportunities apart.

  1. National corporate tenants: high stability and strong credit

All Bluchip properties are pre-leased to national corporate tenants, such as fast-food restaurants and drugstores. Historically, this sub-class of CRE has posed minimal investment risk, generating steady cash flow and long-term appreciation potential. These properties function as passive investments: investors buy, hold, and receive reliable distributions.

The Bluchip Index consists of 100 industry-leading brands, the majority of which engage in investment-grade long-term leases. Fueled by brand stability, retail buyer favorability, financial strength, and strong credit ratings, these properties are pre-leased to Starbucks, CVS, Chick-fil-A, and other marquee household names.

  1. Location: a tried-and-true strategy

Premier location—defined by top metropolitan statistical areas (MSA), high visibility, easy access, appealing demographics, and robust consumer demand—makes Bluchip properties highly desirable investment targets. 

Unlike a real estate investment trust (REIT), which contains a pre-selected pool of properties, the Bluchip platform offers full flexibility. By filtering by brand and location, Bluchip users have the freedom to invest in the names they want, in the communities and neighborhoods they want to support. 

  1. Tax advantages

What’s more, unlike REIT shareholders, Bluchip investors directly own stakes in the properties they invest in. As a result, Bluchip investors receive the tax benefits on the properties’ distributions.

  1. Data-driven decisions

Propelled by advanced data technology and AI, Bluchip’s proprietary scoring process uncovers the most desirable properties both on and off the market. By reimagining the traditional approach to property metrics, geospatial intelligence, and consumer spending, Bluchip raises the integrity of investment opportunities while cutting the sourcing and vetting process down by months.

The most attractive CRE properties, all at the touch of a button

What sets a Bluchip property apart? These factors are just the beginning. Our proprietary process is driven by intelligence, market experience, and a whole host of nuanced variables. Identifying the most desirable CRE properties is just half of the Bluchip value equation. In our next post, we discuss “5 Reasons Why Bluchip’s Platform Is the Future of Real Estate Investing.”