NNN NORTH SCOTTSDALE MEDICAL, LLC
Available for ยง1031 exchange w llc investment
Offering Purchase Price: $52,615,000
Offering Price Per SF: $341.35
- Purchase Date: First Quarter, 2007
- Offering LTV: 69.37%
- Offering Price Cap Rate: 5.41%
- 1st Year Cash Flow: 6.75%
North Scottsdale Medical consists of three medical office properties totaling approximately 154,136 rentable square feet located in Scottsdale, Arizona, part of the Phoenix metropolitan statistical area. Two of the properties are contiguous, with the third noncontiguous property located approximately 1.2 miles away.
Available for ยง1031 exchange w llc investment
Ideally located within two blocks of the intersection of the recently completed Loop 101 Freeway, the properties are highly visible with convenient ingress and egress while providing adjacency to the Scottsdale Healthcare Shea Hospital and research facility in Phoenix at the Shea Campus. Collectively, the properties are 93% leased to a variety of healthcare-related tenants.
Property Summary
North Scottsdale Medical consists of three medical office properties totaling approximately 154,136 rentable square feet located in Scottsdale, Arizona, part of the Phoenix metropolitan statistical area. Two of the properties are contiguous, with the third noncontiguous property located approximately 1.2 miles away. Ideally located within two blocks of the intersection of the recently completed Loop 101 Freeway, the properties are highly visible with convenient ingress and egress while providing adjacency to the Scottsdale Healthcare Shea Hospital and research facility in Phoenix at the Shea Campus. Collectively, the properties are 93% leased to a variety of healthcare-related tenants.
- Address:ย 10752 N. 89th Place (Edwards I) 8952 E. Desert Cove Dr. (Edwards II) 9700 N. 91st St. (Mountain View) Scottsdale, AZ 85260
- Building Type:ย Medical Office Buildings
- Built:ย 1985, 1986, 1997
- Total SF:ย 154,136
- % Leased:ย 93%ย
TIC Offering
- Offering Size: $16,115,000
- Price Per 1% Ownership: $161,150 equity and $365,000 assumed debt
- Minimum Investment per SPE: 3.00% = $483,450 equity and $1,095,000 assumed debt for a total purchase price of $1,578,450
- Suitability: Accredited Investors Only
LLC Offering
- Offering Size: $2,630,750
- 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 propertyโs value will be enhanced, or that the property will be sold within the planned time period.
- There is a large dependence on two tenants that collectively lease approximately 30% of the Property.
- Unless extended, leases with all of the tenants, representing 59% of the Property, will expire within the next five calendar years and leases representing 3.35% contain early termination options.
Major Tenants (62 Total Tenants)
Scottsdale medical imaging Ltd.
Sq. Ft.: 30,318 Lease Exp.: 02/2017
Scottsdale Medical Imaging Ltd. (SMIL) provides examinations including CAT scans, Fluoroscopy, Vascular & Interventional Radiology, PET scans, and X-rays. SMIL has been servicing the community of Scottsdale for more than two decades and is the largest radiology group in the area with ten separate locations for imaging. The Mountain View building serves as the center of the information technology network for SMIL.
Scottsdale healthcare realty corp.
Sq. Ft.: 15,288 Lease Exp.: 10/2013
Scottsdale Healthcare Realty Corp. manages the real estate assets of Scottsdale Healthcare, a โnot-to-profitโ organization that has been an organizational driving force behind the Scottsdale healthcare system. In addition to asset management, Scottsdale Healthcare Realty Corp. has also been responsible for the development of new and existing properties. The Mountain View property serves as the headquarters for Scottsdale Healthcare Realty Corp. and is marketed as building 11 in the Shea Hospital Campus.
Location Information
As one of the most acclaimed tourist areas in the state of Arizona, Downtown Scottsdale provides an eclectic mix of southwestern and contemporary art galleries, specialty retail, upscale dining, active nightlife and museum elements for residents and visitors alike. According to Economy.com, population growth averaged 3.3% per year over the five-year span concluding with 2005, an exceedingly strong rate representing the net addition of 117,200 persons annually on average. The Downtown area is home to major businesses and corporations including: Scottsdale Healthcare, McKesson, and E-Funds.
Office Market
- Average asking lease rates for existing product increased during the fourth quarter to $24.16 per square foot, up from $23.32 at the end of the third quarter.
- Net absorption for the Metropolitan Phoenix office market through yearend was 3.2 million square feet compared to 3.1 million square feet for this same period one year ago.
- The Arizona unemployment rate dropped to 4.1 percent in November compared to 4.7 percent one year ago, according to the Arizona Department of Economic Security.
- Arizonaโs economy continued to appear vibrant in November, with six industry sectors reaching all-time highs. These sectors are: construction; trade; transportation and utilities; professional and business services; educational and health services; leisure and hospitality and other services.
- The Phoenix-Mesa-Scottsdale Metropolitan Area has been ranked #2 in the top 25 best cities for jobs in the United States for the second consecutive year according to Forbes.
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.
Securities Offered Through NNN Capital Corp., Member NASD/SIPC 4 Hutton Centre Drive w Suite 700 w South Coast Metro w California w 92707 w (714) 667-8252 February 21, 2007