National Net Lease Portfolio VII DST

Colorado | Nevada | New York | Tennessee (Chattanooga) | Tennessee (Knoxville)

Beneficial Interests: $89,357,629

Offering Price: $149,883,245

  • Loan Proceeds: $60,525,616
  • Loan-to-Offering Price Ratio: 40.38%
  • Current Cash Flow: 5.10%
  • Minimum Investment[1031]: $100,000

National Net Lease Portfolio VII DST, a newly formed Delaware statutory trust (the “Parent Trust”) and an affiliate of Inland Private Capital Corporation (“IPCC”) is hereby offering (the “Offering”) to sell to certain qualified, accredited investors (the “Investors”) pursuant to this Private Placement Memorandum (the “Memorandum”) 100% of the beneficial interests (the “Interests”) in the Parent Trust.

The Colorado, Nevada, New York, and Tennessee Properties

The six properties are a part of retail development and  Specifically The Tennessee (Knoxville) Property includes (1) a 119,355 square-foot, single-tenant building located on the second level of the retail center on an approximately 2.74 acre tract of land; and (2) an undivided 57.016% interest in the common areas and facilities of the Condominium.

INVESTMENT HIGHLIGHTS

An investment in the Parent Trust offers the following benefits:

Long-term Leases – The Leases have a weighted average remaining Lease term of 16.07 years (although two of the Leases have remaining base terms, not including extension options, of less than 10 years), and three of the six Leases provide for rent escalations during the initial term of the Lease. Each Lease also provides for numerous renewal options, each with an additional increase in rent.

Net Leases – All of the Leases are “net” leases. See “Summary of the Leases” in the Memorandum.

National Tenant and Location Diversification – The Tenants represented in this portfolio include two retail department stores, a sporting and outdoor store, a warehouse club and a fitness club. Additionally, each Property is located in a distinct metropolitan statistical area.

Long-term, Fixed-Rate, Amortizing Financing – With the exception of the New York Property, which will not be encumbered by debt, the Properties are, or will be, financed with loans that have terms of up to 10 years each and bear interest at fixed rates. Each Loan will provide for at least five years’ of amortizing debt. See “Financing Terms” in the Memorandum.

Passive Income Benefits – An Investor’s passive income, if any, from an investment in the Interests may be offset by the Investor’s other passive losses, and an Investor’s passive losses, if any, from an investment in the Interests may be used to offset the Investor’s other passive income.

THE OFFERING

The Offering is designed for accredited investors seeking to participate in a tax-deferred exchange as well as those seeking a quality, multiple-owner real estate Investment. Only accredited investors may purchase Interests in this Offering. See “Summary of the Offering” and “The Offering” in the Memorandum.

THE LOCATIONS

In the map given below, location is given for all properties and you can check the same for your reference.

THE FINANCING

The Colorado Property and the Tennesee (Chattanooga) Property have been financed by a single, crosscollateralized loan in the principal amount of $14,236,800. The Tennessee (Knoxville) Property has been financed by a single loan in the principal amount of $27,360,000. It is anticipated that the Nevada Property will be financed by a single loan in the principal amount of $19,000,000. Financing arrangements for the Nevada Property have yet to be finalized.

The New York Property will not be encumbered by debt. With the exception of a single loan on both the Colorado Property and the Tennessee (Chattanooga) Property, the loans will not be cross-collateralized or cross-defaulted, meaning a default under one of the loans will allow the applicable lender to recover against only the particular Property(ies) securing the particular loan and will not trigger a default under any other loan.

PROPERTY OVERVIEW

The Colorado Property

The Colorado Property is part of a retail development, commonly known as the Centerplace of Greeley, and consists of a standalone single-tenant building located on an approximately 10.31 acre parcel of land, which is 100% leased to Kohl’s Department Stores, Inc., a Delaware corporation (“Kohl’s”), operating a Kohl’s department store.

The Nevada Property

The Nevada Property consists of an approximately 6.09 acre parcel of land, a three-story fitness center, a large outdoor in-ground concrete swimming pool and a three-story parking garage. The Nevada Property is 100% leased to Healthy Way of Life II, LLC, a Delaware limited liability company (“Fitness Tenant”), operating a LIFE TIME FITNESS® center. The guarantor of the lease on the Nevada Property is Life Time Fitness, Inc., a Minnesota corporation (“Life Time”).

The New York Property

The New York Property is adjacent to, but not a part of, a retail development, commonly known as The Shops at New York Mall, and consists of approximately 6.67 acres of land and a standalone single-tenant building, which is 100% leased to BJ’s Wholesale Club, Inc. (“BJ’s”), operating a BJ’s wholesale discount store. The New York Property also includes a 12 pump refueling station with a small attendant’s structure, which is owned by BJ’s during the term of its lease, and which BJ’s is required to remove upon the expiration or sooner termination of such lease.

The Tennessee (Chattanooga) Property

The Tennessee (Chattanooga) Property is part of a retail development, commonly known as The Fountains, and consists of two side-by-side standalone single-tenant buildings located on an approximately 9.40 acre parcel of land. One of the buildings is 100% leased to Academy, Ltd., a Texas limited partnership (“Academy”), operating an Academy Sports + Outdoors store. The other building is 100% leased to Kohl’s.

The Tennessee (Knoxville) Property

The Tennessee (Knoxville) Property is Unit 1 of “University Commons, a Condominium,” which includes seven units with an aggregate floor area of approximately 208,073 square feet, located on an approximately 12.28-acre parcel of land. Unit 1 of the Condominium is 100% leased to Wal-Mart Stores, Inc., a Delaware corporation (“Wal-Mart”), operating a Wal-Mart discount department store. The other six units of the Condominium are not included in the Tennessee (Knoxville) Property. One of the other units is a Publix grocery store and the remaining five units consist of several smaller retail tenants which jointly comprise a retail center, commonly known as University Commons.

Specifically, the Tennessee (Knoxville) Property includes (1) a 119,355 square-foot, single-tenant building located on the second level of the retail center on an approximately 2.74 acre tract of land; and (2) an undivided 57.016% interest in the common areas and facilities of the Condominium.

ABOUT Inland Real Estate Group of Companies, Inc.

The Inland Real Estate Group of Companies, Inc. (Inland) is one of the nation’s largest commercial real estate and finance groups, representing nearly 50 years of expertise and integrity in the industry. As a business incubator, Inland specializes in creating, developing and supporting member companies that provide real estaterelated investment funds – including limited partnerships, institutional funds and nonlisted real estate investment trusts (REITs) – and real estate services for both third parties and Inland-member companies.

In March 2001, Inland Private Capital Corporation was formed to provide replacement properties for investors wishing to complete a tax-deferred exchange under Section 1031 of the Internal Revenue Code of 1986, as amended, as well as investors seeking a quality, multiple-owner real estate investment. The programs sponsored by IPC offer securities to accredited investors on a private placement basis.

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