NNN Harbour Landing, LLC

Available for §1031 exchange w llc investment

Offering Purchase Price: $18,722,500

Offering Price Per SF: $65,924

  • Purchase Date: 3rd Quarter 2007
  • Offering LTV: 59.09%
  • Offering Price Cap Rate: 6.21%
  • 1st Year Cash Flow: 6.24%

Harbour Landing is a 284-unit multifamily community on South Padre Island Drive in Corpus Christi, Texas. Built in 1986 on 11.5 acres, the property consists of 22 apartment buildings and a spacious clubhouse with vaulted ceilings, a full-size kitchen and media center.

Available for §1031 exchange w llc investment

Individual apartment units feature builtin entertainment centers, walk-in closets, ceiling fans, large picture windows with adjustable blinds, and private balconies or patios with storage closets. In addition, select units feature built-in bookshelves, washer and dryer connections, vaulted ceilings and separate dining rooms.

Property Summary

Harbour Landing is a 284-unit multifamily community on South Padre Island Drive in Corpus Christi, Texas. Built in 1986 on 11.5 acres, the property consists of 22 apartment buildings and a spacious clubhouse with vaulted ceilings, a full-size kitchen and media center. Community amenities include a fitness center with state-of-the-art equipment, fenced tennis court, basketball court, barbeque/picnic areas, playground, business center, laundry facilities and two swimming pools complete with a wading pool and heated spa. Individual apartment units feature builtin entertainment centers, walk-in closets, ceiling fans, large picture windows with adjustable blinds, and private balconies or patios with storage closets. In addition, select units feature built-in bookshelves, washer and dryer connections, vaulted ceilings and separate dining rooms. The unit mix consists of 172 one-bedroom units and 112 two-bedroom units. The net rentable area of the property is approximately 193,000 square feet, with an average unit size of 681 square feet.

TIC Offering

  • Offering Size: $7,660,000
  • Price Per 1% Ownership: $76,600 equity: $110,625  and assumed debt
  • Minimum Investment per SPE: 3.00% =$229,800 equity and $489,910 assumed debt for a total purchase price of $561,675
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $383,000
  • Price Per Unit: $5,000
  • Minimum Investment: $25,000
  • Suitability: Accredited investors only
NNN Harbour Landing
NNN Harbour Landing

Business Plan

NNN Harbour Landing
NNN Harbour Landing
  • 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 can be no assurances that the property manager will be able to renew expiring leases or lease vacant spaces in the property.
  • The purchase of the property is contingent on the purchase of Baypoint Resort, another apartment community owned by the seller.
  • The impending military base closure in Corpus Christi could result in decreased rental demands at the property.
  • Competition from nearby apartment communities and vacant sites for potential future development could negatively impact the financial performance of the property.
  • An affiliate of the manager recently acquired an apartment community near the property, which could result in a conflict of interest.
  • There can be no assurances that the property manager will be able to renew expiring leases or lease vacant spaces in the property.

Unit Amenities

  • Central heat and air conditioning
  • Ceiling fans
  • Built-in entertainment centers
  • Large picture windows with adjustable blinds
  • Walk-in closets
  • Private balconies or patios with storage closet
  • Frost-free refrigerators
  • Electric stoves
  • Dishwashers and pantries
  • Cable and high speed internet access available
  • Built-in bookshelves
  • Full-size washer and dryer connections
  • Vaulted ceilings
  • Separate dining rooms

Community Amenities

  • Two swimming pools, wading pool and heated spa
  • Fitness center with state-of-the-art exercise equipment
  • Main pool areas with fountain, picnic areas, picnic tables and lounges
  • Spacious clubhouse with vaulted ceilings, full-size kitchen and media center
  • Resident business center
  • Fenced and lighted tennis court
  • Two laundry facilities
  • Full-size basketball court
  • Grassy courtyard area with barbecues and picnic tables
  • Enclosed children’s playground

Location Information

Founded in 1839 as a trading post, the South Texas city of Corpus Christi was the scene of Mexican War operations and U.S. Civil War skirmishes. The arrival of the railroad in 1881 stimulated a land boom. The exploitation of gas (1923), development of a deepwater port (1926), and discovery of the Saxtet oil field (1939) laid the city’s economic foundation. Today, Corpus Christi has a thriving economy based largely on energy and tourism. Resort facilities are based on the bay and the coastal barrier islands, including Padre Island. The city is also the site of the Corpus Christi Naval Air Station, a branch of Texas A&M University, and home to the sixth-busiest port in the United States. Unemployment is very low, 4.0 percent as of May 2007, significantly less than the national average.

Apartment Market

  • Per Hendricks and Partners’ First Quarter 2007 Apartment Update, the vacancy rate in Corpus Christi was 5.4 percent in the first quarter 2007, and average rents increased by 3.2 percent in 2006 and 1.5 percent in the first quarter 2007.
  • Corpus Christi has a tight apartment market, with projected population increases and limited new construction. Occupancy levels and rental rates are expected to rise.
Economic Trends
  • The population of Corpus Christi has been increasing since 2001 and is expected to reach 416,600 by 2007, according to the United States Census Bureau. The population is forecasted to continue to grow and reach 430,400 people by 2010.
  • The tourism industry is thriving in Southeast Texas; 16 new hotels, roughly 1,000 new rooms, are scheduled to be built in the near future. Healthcare and retail are expanding, while new roadways are being built to accommodate population growth. In addition, large-scale mixed-use projects are positioning the area for future expansion, and the planned La Quinta Container Terminal is expected to create thousands of jobs and increase trade volume capacity.

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 37 million square feet of property in 28 states valued at more than $5.1 billion. Although past performance is no guarantee of future results, Triple Net Properties, LLC has an unparalleled track record and has acquired 277 properties to date. Triple Net and affiliates have sold 100 properties for over $2.3 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.