NNN Riverwood Place, LLC

Available for §1031 exchange w llc investment

Offering Purchase Price: $43,850,000

Offering Price Per SF: $223.71

  • Purchase Date: 3rd Quarter 2007
  • Offering LTV: 60.43%
  • Offering Price Cap Rate: 5.95%
  • 1st Year Cash Flow: 6.50%

Riverwood Place consists of two Class A office buildings in the Milwaukee suburb of Pewaukee, Wisconsin. Completed in 1999 and 2001, One and Two Riverwood Place are situated on nearly 17 acres in the Riverwood Office Park and are recognized for their unique architectural appeal.

Available for §1031 exchange w llc investment

Each building features a two-story, open lobby complete with polished granite floors and walls. The property is able to accommodate tenants specializing in the healthcare and computer-service industries.

Property Summary

Riverwood Place consists of two Class A office buildings in the Milwaukee suburb of Pewaukee, Wisconsin. Completed in 1999 and 2001, One and Two Riverwood Place are situated on nearly 17 acres in the Riverwood Office Park and are recognized for their unique architectural appeal. Each building features a two-story, open lobby complete with polished granite floors and walls. The property is able to accommodate tenants specializing in the healthcare and computer-service industries. The property is within close proximity to Interstate 94, and also offers convenient access to Route 164, which runs along the eastern edge of the office park. Riverwood Place is currently 93 percent occupied by several nationally recognized companies, including the Microsoft Corporation, Humana Wisconsin Health Organization Insurance Corporation, and Cisco Systems, Inc.

Property Information

  • Address: N17 W24222 Riverwood Drive & N19 W24133 Riverwood Drive Pewaukee, WI 53072
  • Building Type: Office
  • Year Built: 1999 & 2001
  • Total SF: 196,013
  • % Leased: 93%

TIC Offering

  • Offering Size: $17,350,000
  • Price Per 1% Ownership: $173,500 equity and $265,000 assumed debt
  • Minimum Investment per SPE: 3.00% = $520,500 equity and $795,000 assumed debt for a total purchase price of $1,315,500
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $867,500
  • Price Per Unit: $5,000
  • Minimum Investment: $25,000
  • Suitability: Accredited investors only

Property Strengths

  • Two newly-developed Class A office buildings that were completed in 1999 and 2001
  • Located in a park-like setting that features landscaped areas, reflecting ponds and walking paths.
  • Tenant roster includes several investment grade credit tenants like Microsoft Corporation, Cisco Systems, Inc. and Wells Fargo Bank
  • The property is currently stabilized and outperforming the market in terms of occupancy.
  • The existing rent roll is well-diversified with staggered lease expirations.
  • The property also offers investors stable and predictable cash flow due to the long term commitments from the existing major tenants.

Major Tenants (20 Total Tenants)

Humana Wisconsin Health Organization Insurance Corp.
www.humana.com
Square Feet: 53,514 Lease Expiration: 10/2012
Square Feet: 3,735 Lease Expiration: 10/2008

Humana is a subsidiary of Humana, Inc. and is part of their family of insurance and health plan companies. Headquartered in Louisville, Kentucky, Humana Inc. is one of the nation’s largest publicly traded health benefits companies. They have approximately 11.3 million medical members and offer a diverse portfolio of health insurance products and related services – through traditional and consumer-choice plans, employer groups, government-sponsored plans, and individuals. Humana Inc.’s business units include: Humana Military, Humana Dental, Humana One, Humana Ventures and Humana Medicare Plans. The lease with Humana Wisconsin Health Organization Insurance Corporation has been fully guaranteed by its parent company, Humana, Inc., which has an S&P credit rating of BBB.

Michael Best & Friedrich LLP
www.michaelbest.com
Square Feet: 20,601 Lease Expiration: 5/2012

Michael Best is one of the Midwest’s oldest and largest law firms. It was founded in 1848 by noted trial lawyer Edward G. Ryan, who later served as Chief Justice of the Wisconsin Supreme Court. Today, the firm has more than 250 attorneys in six locations, including Milwaukee, Madison, Waukesha and Manitowoc, Wisconsin; Chicago, Illinois and Montgomeryville, Pennsylvania. Michael Best serves clients on a regional, national and international basis. Its clients range from one-person start-ups to Fortune 500 companies. Its practice is organized into the following disciplines: Business, Employment Relations, Health Care, Intellectual Property, Land & Resources, Litigation, Taxation and Wealth Planning Services.

Location Information

Riverwood Place is located in the Milwaukee suburb of Pewaukee, Wisconsin. The largest city in Wisconsin, Milwaukee is situated on the western shore of Lake Michigan, about 90 miles north of Chicago. The city is one of the nation’s great industrial centers and its manufacturers are leaders in the production of medical diagnostic instruments, small gasoline engines, malt beverages, iron and steel forgings, and robotics. Milwaukee’s high-tech manufacturing community is one of the largest among the nation’s major metropolitan areas. In the past decade, the downtown area has experienced major construction and development, including the Milwaukee Riverwalk, the Midwest Airlines Center, an addition to the Milwaukee Art Museum, and major renovations to the Milwaukee Auditorium. Many new skyscrapers, condos, and lofts have been built in and around the city in hopes of reviving the downtown community. Milwaukee ranks fifth in the number of Fortune 500 companies headquartered in its metropolitan area.

Office Market

  • The average quoted asking rental rate for available office space, all classes, was $15.14 per-square-foot per year at the end of the first quarter 2007 in the Milwaukee area. This represented a 1.6 percent increase in quoted rental rates from the end of the fourth quarter 2006.
  • The Class A office market recorded net absorption of positive 76,598 square feet in the first quarter 2007.
Economic Trends
  • The Milwaukee economy managed to end 2006 with some modest economic advances, in contrast with most of the Midwest.
  • The Bureau of Labor Statistics (BLS) reported a seasonally unadjusted rate of 4.6 percent in December for the Milwaukee MSA.

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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