NNN Siena Office Park I, LLC

NNN Siena Office Park I, LLC

Available for ยง1031 exchange w llc investment

Offering Purchase Price: $41,970,000

Offering Price Per SF: $414.40

Siena Office Park I consists of two newly-developed, Class A office buildings totaling more than 101,000 square feet in Henderson, Nevada. Completed in 2002 and 2003, the buildings feature a complementary design and were constructed to high standards in terms of systems and finishes.

Available for ยง1031 exchange w llc investment

systems and finishes. The Property offers convenient access to Interstate 215 and the recently expanded St. Rose Parkway, which connects to Interstate 15. Siena Office Park I is 91% leased and the existing rent roll is well-diversified with staggered lease expirations. Nearly one-third of all tenants are medical-related. Major tenants include HQ Global Workplaces, Inc., National University, and Countrywide Home Loan.

Property Summary

Siena Office Park I consists of two newly-developed, Class A office buildings totaling more than 101,000 square feet in Henderson, Nevada. Completed in 2002 and 2003, the buildings feature a complementary design and were constructed to high standards in terms of systems and finishes. The Property offers convenient access to Interstate 215 and the recently expanded St. Rose Parkway, which connects to Interstate 15. Siena Office Park I is 91% leased and the existing rent roll is well-diversified with staggered lease expirations. Nearly one-third of all tenants are medical-related. Major tenants include HQ Global Workplaces, Inc., National University, and Countrywide Home Loan.

Property Information

  • Address: 861 Coronado Center Drive (Bldg. 3) 2850 West Horizon Ridge Pkwy (Bldg. 5) Henderson, NV 89052
  • Building Type: Office
  • Year Built: 2002 & 2003
  • Total SF: 101,278
  • % Leased: 91%

TIC Offering

  • Offering Size: $13,350,000
  • Price Per 1% Ownership: $133,500 equity and $286,200 assumed debt
  • Minimum Investment per SPE: 3.00% = $400,500 equity and $858,600 assumed debt for a total purchase price of $1,259,100
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $667,500
  • 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 eight 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 propertyโ€™s value will be enhanced, or that the property will be sold within the planned time period.
  • Unless extended by the tenants, leases representing 61% of the property will expire within the next five calendar years. In addition, leases representing 33% of the Property contain early termination options.
  • Releases from for lis pendens (โ€œsuit pendingโ€) recorded on the title to the Property must be received prior to close.
  • An affiliate of the manager may acquire 871 Coronado Center Drive, another building in Siena Office Park.
  • Four undeveloped parcels adjacent to the Property and new construction in the Southeast office submarket of Las Vegas may add competition to the Property.

Major Tenants (13 Total Tenants)

HQ Global Workplaces, Inc.
Sq. Ft.: 17,849 Lease Exp.: 12/2016

HQ Global Workplace is a division of The Regus Group, the worldโ€™s largest provider of outsourced workplaces, including executive suites, meeting rooms, conference rooms, video conferencing and training rooms for companies of any size. The Regus Group Network has 750 business centers in 350 cities and in 60 countries and includes four brands: Regus Business Centers, HQ Global Workplaces, Stratis and Business Meeting Places. The company provides more than 100,000 clients with flexible and cost-effective workplace options to meet their specific needs. Established in 1989 in Brussels, Belgium by British entrepreneur Mark Dixon, Regus made a strong entrance into the United States based network of franchised business centers by acquiring Stratis, in April 2001 and then HQ Global Workplaces in July 2004. There are currently 3,500 employees worldwide. Total revenue for 2005 was ยฃ463.3 million. The Regus Group is traded on the London Stock Exchange (RGUL).

Option to terminate effective December 31, 2011 by providing written notice not less than 6 months prior to the termination date and payment of a termination fee. Lease with tenant is a participation lease with a portion of the monthly base rent dependent on the tenantโ€™s workstation revenue – Seller will escrow the difference.

National University
Sq. Ft.: 13,157 Lease Exp.: 05/2012

Founded in 1971, National University is the second-largest, accredited, private, nonprofit institution of higher learning in California with the third largest graduate program in the country. National consists of five schools and one college, including the Schools of Business and Management; Education; Engineering and Technology; Health and Human Services; Media and Communications; and the College of Letters and Sciences. National University offers more than 80 undergraduate and graduate degrees, and 13 teacher credential and certificate programs. National offers more than 35 graduate and undergraduate degree programs and over 300 courses online. The university enrolls some 17,000 students at campuses throughout California. National University also provides online degree programs in a variety of disciplines. National Universityโ€™s headquarters are located in La Jolla, California and has over 1,900 employees.

Countrywide Home Loan
Sq. Ft.: 12,057 Lease Exp.: 11/2009

Countrywide Home Loan (NYSE:CFC), was established in 1969 and provides home loans countrywide. The flagship subsidiary of Countrywide Financial is one of the largest home loan issuers in the United States, producing more than $425 billion in mortgages in 2005. Countrywide is a diversified financial services company with mortgage banking at its core. Through more than 50 offices, its wholesale lending division has relationships with some 30,000 mortgage brokers. Countrywide Home Loans also provides ancillary title, escrow, appraisal and other services. S&P Rating: A-1/A.

Option to terminate effective December 3, 2007 by providing written notice not less than 180 days prior to the termination date and payment of a termination fee of $336,525.

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Location Information

The city of Henderson forms the southern edge for one of the fastest growing areas in the United States, the Greater Las Vegas metropolitan region. Henderson is located in the southern rim of the Las Vegas Valley, just seven miles southeast of the famous Las Vegas Strip and minutes away from McCarran International Airport. Known for its master-planned residential areas, progressive business development, and outstanding recreational amenities, the city of Henderson has become one of the nationโ€™s most dynamic communities. In 2006, the city was named one of the top 20 in America in Money Magazineโ€™s annual โ€œAmericaโ€™s Best Places to Live.โ€ Henderson was recently recognized as the nationโ€™s fastest growing large city from 1990-1998 by the U.S. Census Bureau and now ranks as the second largest city in the state of Nevada.

Office Market

  • The Las Vegas office market had a positive year in 2006. Net absorption for the year reached 1.95 million square feet, while gross space leased showed 3.31 million square feet.
  • As land values and construction costs continue to rise into the next year, CBRE projects rental rates to continue to rise. Current market average for office space is $1.91, compared to the $1.78 average CBRE recorded a year ago.
Economic Trends
  • According to the Nevada Workforce Informer, โ€œboth U.S. and Nevada economies are facing modest growth in the coming months, and the long-term prospects for Nevada are bright.
  • The Las Vegas unemployment rate fell to 4.0%, while the national level rose 3% to 4.7%.
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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 over $4.6 billion. Although past performance is no guarantee of future results, Triple Net Properties has an unparalleled track record and has acquired 242 properties to date. Triple Net and affiliates have sold 84 properties valued at $1.80 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.

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