NNN Church Street Office Center, LLC -

NNN Church Street Office Center, LLC

Available for §1031 exchange w llc investment

Offering Purchase Price: $34,210,000

Offering Price Per SF: $223.87

Available for §1031 exchange w llc investment

A 3½ level parking garage containing 307 spaces, as well as 45 uncovered spaces to the north of the property, offers a healthy supply of parking for tenants and visitors to the Property. Church Street is 90% leased to multiple tenants, including Solucient, Fluent, Inc., and Northwestern University.

Property Summary

Church Street Office Center is an eight-story, elegantly outfitted Class A office building totaling nearly 153,000 square feet in the heart of the Chicago suburb of Evanston, Illinois. The Property enjoys direct access to Church Street and Oak Avenue, and lies just four miles from the Edens Expressway (I-90/94), providing tenants with convenient access to O’Hare International Airport and the Greater Chicago metropolitan region. A 3½ level parking garage containing 307 spaces, as well as 45 uncovered spaces to the north of the property, offers a healthy supply of parking for tenants and visitors to the Property. Church Street is 90% leased to multiple tenants, including Solucient, Fluent, Inc., and Northwestern University.

TIC Offering

Offering Size: $12,610,000
Price Per 1% Ownership: $126,100 equity: $216,000 and assumed debt
Minimum Investment per SPE: 3.00% =$378,300 equity and $648,000 assumed debt for a total purchase price of $1,026,300
Suitability: Accredited Investors Only

LLC Offering

Offering Size: $630,500
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 five 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.
There is a large dependence on a single tenant, Solucient, LLC that leases approximately 28% of the Property.
Unless extended, leases representing 50% of the Property will expire within the next five calendar years. In addition, leases representing 38% of the Property contain early termination options.
The Property was constructed in 1984, and according to initial property condition reports, the building is in good condition. However, based on the age of the Property, the building may require additional capital expenditures at a future date.

Major Tenants (33 Total Tenants)

Solucient, LLC
Square Feet: 42,891 Lease Expiration: 6/2014

Solucient is an information products company serving the healthcare industry. It is the market leader in providing the tools and vital insights that healthcare managers use to improve the performance of their organization.

Solucient was formed by the merger of information leaders, HCIA-Sachs and HBS International. HCIA-Sachs made its mark by providing strategic information, market intelligence, and clinical and financial analysis; HBSI became the nation’s most influential source of process and outcomes information and tools. Solucient is currently owned by The Thomson Corporation (NYSE: TOC), which acquisition was completed in October 2006. The Thompson Corporation does not guarantee the lease. The Property serves as the headquarters for Solucient.

Tenant may terminate effective June 30, 2011 with payment of a termination fee of $1,068,151.30.

Fluent, Inc.

Square Feet: 10,492 or the property
Lease Expiration: 5/2010

Since its inception in 1983, Fluent has established itself as a global leader among commercial computational fluid dynamics (“CFD”) vendors, becoming the largest supplier of CFD software in the world. In May 2006, Fluent became a wholly owned subsidiary of ANSYS, Inc. (NASDAQ: ANSS), the world’s largest supplier of computer-aided-engineering (“CAE”) simulation asoftware and solutions.

Fluent focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient, and cost-conscious product development, from design concept to final-stage testing and validation. Fluent and its global channel partners provide sales, support and training for customers.

Option to terminate on June 1, 2008, by notice in writing to the landlord and a termination payment for tenant improvement reimbursement.

Location Information

Church Street Office Center is located in the north shore Chicago suburb of Evanston, Illinois. Bordered by Lake Michigan to the east and the city of Chicago to the south, Evanston is a mature suburb populated by residents drawn to its proximity to the lake shore, convenient access to the city of Chicago, and its facilities as the home of Northwestern University. The Chicago Metropolitan Area, which ranks as the 3rd largest metropolitan area in the United States (behind only the New York and Los Angeles metropolitan areas), is home to more than 9.4 million residents and occupies approximately 10,874 square miles. The median household income of the metropolitan region is $117,500, which exceeds the averages for the top metros in the country and the top metros in the region.

Office Market

For the past six quarters, the suburban market has consistently yielded positive net absorption, with the most significant amount seen in Class A space.
First quarter posted a 15.6% direct vacancy rate, a slight decrease from fourth quarter 2006 and the lowest direct vacancy rate since 15.9% reported first quarter 2002. The North Suburban submarket, where the Property is located, leads the way with a 11.6% direct vacancy rate.

Economic Trends

The job market in Chicago has been positive, with the Bureau of Labor Statistics (“BLS”) reporting a 4th quarter seasonally-unadjusted unemployment rate of 3.9%.
According to Economy.com, office employment has been strong, with the sector adding 26,300 jobs in 2006.

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.