NNN Ashley Overlook, LLC

Available for §1031 exchange w llc investment

Offering Purchase Price: $27,897,000

Offering Price Per SF: $268.94

  • Purchase Date: 3rd Quarter 2007
  • Offering LTV: 54.15%
  • Offering Price Cap Rate: 6.80%
  • 1st Year Cash Flow: 6.50%

Ashley Overlook is a four-story Class A office building totalingapproximately 103,700 square feet in Charleston, SouthCarolina. Featuring views of the Ashley River, the propertyis situated within the 80-acre Faber Place Office Park, thehighest profile suburban office park in the Charleston area.

Available for §1031 exchange w llc investment

Located just three miles from the CharlestonInternational Airport, the property offers convenient access toall of metropolitan Charleston via Interstates 526 and 26.

Property Summary

Ashley Overlook is a four-story Class A office building totalingapproximately 103,700 square feet in Charleston, SouthCarolina. Featuring views of the Ashley River, the propertyis situated within the 80-acre Faber Place Office Park, thehighest profile suburban office park in the Charleston area.Completed in July 2006, Ashley Overlook is the newest buildingin the park, commanding rents at or above the neighboringproperties. Located just three miles from the CharlestonInternational Airport, the property offers convenient access toall of metropolitan Charleston via Interstates 526 and 26. With343 parking spaces surrounding the building, the propertyprovides an ample parking ratio of 3.8 spaces per 1,000square feet. Ashley Overlook is nearly 88 percent leased tonumerous tenants, including Select Health of South Carolina,Inc., Springfield College, and O’Shaughnessy Real Estate.

Property Information

  • Address: 4390 Belle Oaks DriveCharleston, SC 29405
  • Building Type: Office
  • Year Built: 2006
  • Total SF: 103,728
  • % Leased: 88%

TIC Offering

  • Offering Size: $12,790,000
  • Price Per 1% Ownership: $127,900 equity and$151,070 assumed debt
  • Minimum Investment per SPE: 3.00% =$383,700 equity and $453,210 assumed debtfor a total purchase price of $836,910
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $639,500
  • Price Per Unit: $5,000
  • Minimum Investment: $25,000
  • Suitability: Accredited investors only

Business Plan

  • Preserve the capital investment.
  • Realize income through the acquisition, operation and sale of the
    property.
  • Make monthly distributions, which may be partially tax-deferred as a result of depreciation and amortization expenses.
  • Within approximately eight years, profitably sell the property based on the value added through effective management and operation of the property.
  • There is no guarantee that the business plan will be successfully executed, that the property’s value will be enhanced, or that the property will be sold within the planned time period.
  • The property has experienced minor slab settling, which may require future repairs.
  • One of the property’s tenants is dependent on the residential real estate market. An adverse change in the residential real estate market could negatively affect such tenant’s ability to make lease payments as well as the cash flow generated by the property.

Major Tenants (8 Total Tenants)

Select Health of South Carolina, Inc.

www.selecthealthofsc.com
Square Feet: 39,742 Lease Expiration: 2/2014*

As the most experienced Medicaid insurer in South Carolina, Select Health manages the delivery of quality and accessible healthcare to more than 70,000 members across South Carolina. This effort has resulted in savings for South Carolina and improved health outcomes. Since 2001, Select Health has saved South Carolina more than $6 million in healthcare costs.Select Health’s lease comprises 39,742 square feet, or approximately 38 percent of the total square footage of the property. *Options to terminate lease as of the fourth, fifth or sixth anniversaries of the commencement date (March 1, 2011, March 1, 2012 and March 1, 2013, respectively),with not less than 12 months written notice prior to the applicable anniversary date. Termination fee equals the unamortized portion of tenant improvement allowance and leasing commissions pertaining to the lease.

Springfield College
www.springfieldcollege.edu
Square Feet: 23,591 Lease Expiration: 12/2017*

Founded in 1885 in Springfield, Massachusetts, Springfield College isa private educational institution that emphasizes allied health sciences,human and social services, sports movement activities, and the arts and sciences. Today, more than 5,000 students attend classes at either the main campus in Springfield or one of nine satellite campuses around the United States. Springfield College’s Charleston campus, which opened in 2003, is a weekend-based school for persons seeking a degree in human services.As the only college or university in South Carolina to offer a bachelor’s degree in human services, the undergraduate program meets the needs of human services professionals working in a wide array of positions in community-based agencies and organizations. Springfield College’s lease comprises approximately 23,591 square feet, or approximately 23 percent of the total square footage of the property. *One-time right to terminate the lease at the end of the seventh lease year (August 31, 2014) by giving the landlord prior written notice with not less than nine months prior to the last day of the seventh lease year. Termination fee equals the unamortized portion of tenant improvement allowance and leasing commissions paid by the landlord pertaining to the lease.

Location Information

Named after King Charles II of England, Charleston, South Carolina is located at the coastal junction of the Ashley and Cooper Rivers. The city was founded in 1670 and continues to thrive, boasting one of the largest containerized cargo ports in North America. Known for its historic landmarks and impressive colonial homes, Charleston is a notable tourist destination, attracting nearly four million visitors annually.The diverse economy is based largely on tourism industries,transportation services, healthcare, military installations and manufacturing. The metropolitan statistical area, comprised of Berkeley, Charleston, and Dorchester counties, covers nearly 3,200 square miles and has an estimated population of more than 600,000. In 2006, Forbes magazine ranked Charleston the 56th best places for business in the United States.

Office Market

  • Rental rates in all submarkets are at an all time high due in part to increasing land prices, construction costs and the impact of solid net job growth in the area.
  • Absorption for the first half of 2007 in the Charleston, South Carolina office market remains consistent with recent years.Absorption over the first six months of 2007 totaled 175,000 square feet.
Economic Trends
  • Charleston added more than 70,000 new residents last year, making it one of the fastest growing cities in the state.
  • According to the Charleston Regional Development Alliance,businesses have invested more than $5.5 billion in the Charleston region since 1995, creating nearly 60,000 net new jobs. Between 2000 and 2006, employment in the region grew nearly 12 percent, compared with the national growth rate of 5.5 percent. In addition, the workforce population in the Charleston region grew 14.1 percent between 2000 and 2006,more than double the 6.2 percent growth rate for the nation as a whole.

ABOUT Triple Net Properties, LLC

Triple Net Properties, LLC has time-tested experience in real estate syndications, acquisitions, leasing and property management. Triple Net currently manages a growing portfolio of over 37 million square feet of real estate in 28 states valued in excess of $5.1 billion. Although past performance is no guarantee of future results, Triple Net Properties, LLC has an unparalleled track record and has acquired 277 properties to date. Triple Net and affiliates have sold 100 properties for more than $2.3 billion since 2000.

Triple Net Properties, LLC is a wholly-owned subsidiary of NNN Realty Advisors, Inc., a nationwide commercial real estate asset management and services firm.

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