NNN Park Central, LLC

Available for §1031 exchange w llc investment

Offering Purchase Price: $36,820,000

Offering Price Per SF: $173.51

  • Purchase Date: 4th Quarter 2007
  • Offering LTV: 54.32%
  • Offering Price Cap Rate: 6.07%
  • 1st Year Cash Flow: 6.25%

Park Central is a ten-story office building totaling approximately 212,200 square feet in Atlanta, Georgia. The property is located in an established neighborhood less than 10 miles northeast of the Atlanta central business district (CBD) and five miles from Buckhead, one of Atlanta’s top residential districts.

Available for §1031 exchange w llc investment

Park Central, originally built in 1986 and renovated in 2005 consists of interior and exterior upgrades, landscaping and stylish architectural upgrades. The property also provides tenants with an on-site café/ sundry shop and full fitness center with new equipment.

Property Summary

Park Central is a ten-story office building totaling approximately 212,200 square feet in Atlanta, Georgia. The property is located in an established neighborhood less than 10 miles northeast of the Atlanta central business district (CBD) and five miles from Buckhead, one of Atlanta’s top residential districts. Park Central, originally built in 1986 and renovated in 2005 consists of interior and exterior upgrades, landscaping and stylish architectural upgrades. The property also provides tenants with an on-site café/ sundry shop and full fitness center with new equipment. Additional building amenities include 24 hour on-site security with a new lobby desk checkpoint, a two-story atrium lobby, convenient access to Interstate 85, and a three-story parking garage containing approximately 785 parking spaces. The property is currently 85 percent leased to 30 tenants including Digital Tigers, RLI Insurance and Phoenix Systems.

Property Information

  • Address: 2970 Clairmont Road Atlanta, GA 30329
  • Building Type: Office
  • Year Built: 1986, Renovated in 2005
  • Total SF: 212,211
  • % Leased: 85%

TIC Offering

  • Offering Size: $16,820,000
  • Price Per 1% Ownership: $168,200 equity and $200,000 assumed debt
  • Minimum Investment per SPE: 3.00% = $504,600 equity and $600,000 assumed debt for a total purchase price of $1,104,600
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $841,000
  • 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.
  • The property will rely upon a master lease of 15,200 square feet (approximately 7 percent) of the property by the seller. 
  • The largest tenant, Digital Tigers, Inc. is a privately-held company whose financials are not available for review. If Digital Tigers breaches its lease or experiences an adverse financial performance resulting in its inability to pay the rent or in bankruptcy, the economic viability of the property could be jeopardized. 
  • Affiliates of the manager have acquired four other office properties near the property, which could result in a conflict of interest. 

Major Tenants (30 Total Tenants)

Digital Tigers, Inc.
www.digitaltigers.com
Square Feet: 43,682 Lease Expiration: 5/2012*
Digital Tigers, Inc. offers a complete multi-monitor product line, providing seamless multi-monitor solutions, from multi-screen desktop displays and desktop workstations, to notebook docking stations and multimonitor software utilities. Digital Tigers, Inc. supplies these products to more than 30 Fortune 100 companies. *One-time contraction option to vacate either entire 3rd (21,721 square feet) or 4th floor (21,961 square feet) effective May 31, 2010 by providing notice by August 31, 2009 with payment of a contraction fee of $358,153 in one lump sum or in 24 equal monthly installments of $16,198.

RLI Insurance Company
www.rlicorp.com
Square Feet: 14,178 Lease Expiration: 7/2012

With more than 40 years in the industry, RLI Insurance is a specialty insurance company that offers a diversified portfolio of property and casualty coverages and surety bonds. Rated A+ by A.M. Best and Standard & Poors, RLI Insurance operates in all 50 states from 25 office locations.

Phoenix Systems, Inc.
www.phoenix-systems-inc.com
Square Feet: 11,154 Lease Expiration: 7/2009

Founded in 1981, Phoenix Systems, Inc. provides user friendly record keeping and accounting systems for the financial services market. By combining their technological expertise with their knowledge of the mutual funds and employee benefits industries, they provide mainframe strength financial accounting/record keeping solutions on personal computers.

Location Information

Founded in 1837, Atlanta is the capital and most populous city in the state of Georgia. In the last decade, Atlanta has experienced unprecedented growth – the official city population remains steady at about 420,000, but the metropolitan population has skyrocketed nearly 40 percent to 5,138,223. With the addition of 890,000 residents since April 1, 2000, the Greater Atlanta area boasts the largest numerical gain of any metropolitan area in the United States during that time. A good measure of growth is the ever-changing downtown skyline, along with skyscrapers constructed in the Midtown, Buckhead, and outer perimeter (fringing I- 285) business districts. Atlanta ranks third in the number of Fortune 500 companies headquartered in its metropolitan area, behind only New York and Houston.

Office Market

  • According to REIS, the North East Atlanta/I-85 submarket vacancy rate for the second quarter of 2007 was approximately 10.4 percent compared to the metro average of 15.6 percent. The submarket’s Class A vacancy rate reflects even further stability of approximately 6.6 percent vacancy.
  • Following 2005’s return to solid demand for office space, asking rents continued climbing in 2006 and into 2007; rates have risen in eight of the past ten quarters. During the first half of 2007, asking rents jumped by a surprising $0.87; second quarter’s $0.57 increase represents the highest single-quarter jump in recent years, reaching $21.01/Rentable Square Foot.
Economic Trends
  • Atlanta’s unemployment rate now sits at 4.0 percent compared to the national average of 4.3 percent. Georgia should gain about 55,200 jobs in 2007, with 40,900 of those jobs coming in Atlanta, according to the Georgia State University Economic Forecasting Center.
  • According to Fortune magazine, Atlanta ranked third in the nation among “Cities with the most FORTUNE 500 company headquarters.” There are currently 13 Fortune 500 Companies headquartered in the city including: Home Depot, UPS, and Coca-Cola.

ABOUT Triple Net Properties, LLC

Triple Net Properties, LLC has time-tested experience in real estate syndications, acquisitions, development, construction, leasing and property management. Triple Net currently manages a growing portfolio of over 34 million square feet of property in 28 states valued at more than $4.6 billion. Although past performance is no guarantee of future results, Triple Net Properties, LLC has an unparalleled track record and has acquired 249 properties to date. Triple Net and affiliates have sold 90 properties for over $2.0 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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