NNN HUNER PLAZA, LLC

Available for §1031 exchange w llc investment

Offering Purchase Price: $32,595,000

Offering Price Per SF: $307.90

  • Purchase Date: First Quarter, 2007
  • Offering LTV: 69.03%
  • Offering Price Cap Rate: 5.98%
  • 1st Year Cash Flow: 6.00%

Hunter Plaza is an approximately 106,000-square-foot retail center on two non-contiguous parcels totaling more than 11 acres in Irving, a suburb of Dallas, Texas.

Available for §1031 exchange w llc investment

Located within five miles of Dallas/Fort Worth International Airport and along one of the most heavily traveled thoroughfares in Texas, Interstate Highway 636, the property enjoys excellent access and visibility, as well as a healthy ratio of 6.54 parking spaces per 1,000 feet (691 total spaces).

Property Summary

Hunter Plaza is an approximately 106,000-square-foot retail center on two non-contiguous parcels totaling more than 11 acres in Irving, a suburb of Dallas, Texas. Located within five miles of Dallas/Fort Worth International Airport and along one of the most heavily traveled thoroughfares in Texas, Interstate Highway 636, the property enjoys excellent access and visibility, as well as a healthy ratio of 6.54 parking spaces per 1,000 feet (691 total spaces). Constructed in 2005-2006, Hunter Plaza is currently 90% leased to seven tenants, including Best Buy Stores and 24 Hour Fitness, which anchor the property.

TIC Offering

  • Offering Size: $10,095,000
  • Price Per 1% Ownership: $100,950 equity: $225,000  and assumed debt
  • Minimum Investment per SPE: 3.00% = $302,850 equity and $675,000 assumed debt for a total purchase price of $977,850
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $1,629,750
  • Price Per Unit: $5,000
  • Minimum Investment: $25,000
  • Suitability: Accredited investors only
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Business Plan

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  • 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.
  • The Property is currently not under contract and no assurance can be given that the purchase will occur when anticipated or at all.
  • There is a large dependence on two tenants that collectively lease approximately 77% of the Property: Best Buys Stores, L.P. currently leases 45,702 square feet and 24 Hour Fitness currently leases approximately 35,6000 square feet.
  • New construction in the Dallas/Fort Worth retail market (approximately 6.8 million square feet under construction) could potentially compete with the
    Property and there is no assurance that the Property Manager will be able to maintain the current tenants or attract new tenants. Additionally, there are approximately 5 acres of commercially zoned undeveloped land owned by the Seller adjacent to the Property.

Major Tenants (7 Total Tenants)

Best Buy Stores, l.p.
Sq. Ft.: 45,702 Lease Exp.: 01/2016

Best Buy Stores, L.P., is a wholly owned subsidiary of Best Buy Co., Inc. Best Buy Co., Inc.

(S&P: BBB/Stable) operates as a specialty retailer of consumer electronics, home-office products, entertainment software, appliances, and related services. It operates retail stores and commercial Web sites under the brand names Best Buy, Future Shop, Magnolia Audio Video, and Geek Squad, as well as an outlet store on eBay. Best Buy Co., Inc. offers a full range of products, including: video, audio, home-office, entertainment software, computer software, subscriptions and appliances. As of the end of fiscal year 2006, Best Buy Co.,Inc. operated approximately 924 retail stores in the United States and Canada.

Performance of the Property is dependant upon the allocation of increased real estate taxes, if any. Pursuant to the tenant’s lease, any tax attributable to an increase in valuation resulting solely from the sale or refinancing (as opposed to periodic reassessment) of the Property cannot be charged to the tenant.

24 hour fitness USA, Inc.

Sq. Ft.: 35,600 Lease Exp.: 11/2026

24 Hour Fitness USA, Inc. owns and operates more than 350 fitness centers that offer aerobic, cardiovascular, and weight lifting activities to the company’s more than 3 million members. Some facilities also feature squash, racquetball, and basketball courts; swimming pools; steam and sauna rooms; tanning rooms; and whirlpools. It is one of the only fitness chains open 24 hours a day. The centers are located in 16 states in the United States, as well as in Asia.

Location Information

With a population approaching six million, the thriving Dallas/Fort Worth Metroplex area is one of the largest metropolitan regions in the United States. Median household income outpaces the U.S. average by more than 10%, while the cost of living and local unemployment rate are both below the national average. Population growth since 2000 has been a brisk 10.47%, and is projected to continue at a rate of 11.76% through the end of the decade. Dallas/ Fort Worth has also proven to be an attractive draw for business, and was ranked second in the nation by Site Selection magazine for “overall business climate.”

Retail Market

  • Active residential development, high population growth rates and job creation provide a firm bedrock for Dallas area retail.
  • Construction completion and net absorption volumes for the latest quarter are 319,000 and 194,000 square feet respectively.
Economic trends
  • Non-farm employment as of August 2006 was up 2.9% (57,800 jobs) from 12 months earlier. Job growth has been particularly strong in the Professional and Business Services category, for which the BLS reports a gain of 8.9% (26,500 jobs) over the last 12-month span.
  • The Dallas area unemployment rate is 4.6%, down from 5.1% 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 32.5 million square feet of property in 28 states valued at over $4.3 billion. Although past performance is no guarantee of future results, Triple Net Properties, LLC has an unparalleled track record and has acquired 234 properties to date. Triple Net and affiliates have sold 83 properties valued at over $1.80 billion since 2000.

Triple Net and affiliates have sold 83 properties valued at over $1.80 billion since 2000.