NNN Retreat at Stonecrest, LLC

Available for §1031 exchange w llc investment

Offering Purchase Price: $25,480,000

Offering Price Per Unit: $92,319

  • Purchase Date: 2nd Quarter, 2007
  • Offering LTV: 65.35%
  • Offering Price Cap Rate: 6.19%
  • 1st Year Cash Flow: 6.23%

The Retreat at Stonecrest is a 276-unit Class A apartment community in the Atlanta suburb of Lithonia, Georgia. Located on more than 15 landscaped acres, the approximately 288,000-squarefoot property includes 10 residential buildings and an inviting separate building that houses the community’s leasing, fitness and business centers.

Available for §1031 exchange w llc investment

The Retreat at Stonecrest provides a spacious average unit size of 1,044 square feet and offers many high-end unit features, including full-size washer/dryer connections, oversized closets, ceiling fans, and air conditioning.

Property Summary

The Retreat at Stonecrest is a 276-unit Class A apartment community in the Atlanta suburb of Lithonia, Georgia. Located on more than 15 landscaped acres, the approximately 288,000-squarefoot property includes 10 residential buildings and an inviting separate building that houses the community’s leasing, fitness and business centers. The Retreat at Stonecrest provides a spacious average unit size of 1,044 square feet and offers many high-end unit features, including full-size washer/dryer connections, oversized closets, ceiling fans, and air conditioning. Community amenities include a sparkling swimming pool with sun deck, gated access, and playground. The Retreat at Stonecrest enjoys ready access to Interstate 20, Covington Highway, and Klondike Road, affording residents convenient accessibility to all of Greater Atlanta. The property is approximately 96 percent occupied, and features a generous parking ratio of 1.8 spaces per unit.

Property Information

  • Address: 40 Amanda Drive Lithonia, GA 30058
  • Building Type: Multifamily
  • Year Built: 2002
  • Total SF: 288,240
  • Total Apt. Units: 276
  • % Leased: 96%

TIC Offering

  • Offering Size: $8,830,000
  • Price Per 1% Ownership: $88,300 equity and $166,500 assumed debt
  • Minimum Investment per SPE: 3.00% = $264,900 equity and $499,500 assumed debt for a total purchase price of $764,400
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $441,500
  • Price Per Unit: $5,000
  • Minimum Investment: $25,000
  • Suitability: Accredited investors only

Property Strengths

  • The Property is currently approximately 96% leased, and the manager believes that occupancy rates will remain high during the holding period.
  • The Property is in good condition, which will enable the manager to focus its capital expenditures on upgrades to the Property rather than deferred maintenance.
  • The Property is favorably located in DeKalb County, the third most populated county in Georgia:
  • close to I-20 and I-285 expressways;
  • near the Hartsfield-Jackson Airport;
  • close to I-20 and I-285 expressways; o near the Hartsfield-Jackson Airport; o close to shopping and entertainment, including the Stonecrest Mall, which features 1.2 million square feet of retail space and several readily recognized brand name stores; and
  • in a public school district that consistently ranks above the national average.

Unit Amenities

  • Nine-Foot Ceilings
  • Dishwashers
  • Garbage Disposal
  • Refrigerators with icemaker
  • Full-Size Washer & Dryer Connections
  • Ceiling Fans
  • Private Patio/Balcony
  • 24-Hour Emergency Maintnence

Community Amenities

  • Clubhouse
  • Swimming Pool
  • Playground
  • Fitness Center
  • Business Center with High Speed Internet
  • Controlled-Access Entry Gates

Location Information

The Retreat at Stonecrest is located in the Southeast DeKalb County submarket of Atlanta, Georgia. DeKalb County is the third largest county in Georgia and offers its residents high quality employment, housing, and shopping within its borders. The county is served by Metropolitan Atlanta Rapid Transit Authority (MARTA) and four major interstates (I-20, I-85, I-285 and I- 675). More than half of the Fortune 500 companies in Atlanta have operations in DeKalb County. According to the Atlanta Regional Commission’s (ARC) population estimates, DeKalb County experienced population growth of 44,535 people from 2000 to 2006, bringing its total population to 710,400 people. Since 1990, DeKalb County has grown by approximately 156,600 people or 28.5 percent. Southeast DeKalb’s population is growing even faster than projections for the county as a whole. By 2030 the submarket’s population is expected to increase by 58 percent and employment is expected to increase by 88 percent.

Apartment Market

  • Construction of apartment units continues to decline across the metro, which is expected to support vacancy improvements through the year. Multifamily developers have favored condo projects over the past several years, which continues to suppress apartment inventory growth.
  • According to REIS, annual asking rent growth between 2008 and 2011 is expected to be between 2.4 percent and 3.0 percent. During the same time frame, annual effective rent growth is expected to be between 2.8 percentand 3.4 percent.
Economic Trends
  • Atlanta-area employers created 45,800 positions last year, but job growth slowed during the second half of the year. Employment growth has since reaccelerated with over 10,000 new jobs estimated in the first quarter.
  • The Bureau of Labor Statistics reports an unemployment rate of 3.9 percent for the Atlanta MSA as of March 2007, a decrease from 4.5 percent a year earlier.

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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