NNN Townley Business Park, LLC

Available for §1031 exchange w llc investment

Offering Purchase Price: $19,060,000

Offering Price Per SF: $156.58

  • Purchase Date: 4th Quarter 2007
  • Offering LTV: 51.94%
  • Offering Price Cap Rate: 6.20%
  • 1st Year Cash Flow: 6.50%

Townley Business Park consists of three office buildings and an undeveloped 1.34-acre parcel of land in Phoenix, Arizona. Totaling nearly 121,725 square feet, the gardenstyle business park is situated near the intersection of 23rd Avenue and Dunlap Road, easily accessed from Interstate 17 and the Loop 101 Freeway.

Available for §1031 exchange w llc investment

Townley Business Park is conveniently located near the 1.4 million-square-foot MetroCenter Mall, as well as more than 60 restaurants and 11 hotels. The property offers an ample parking supply of 509 parking spaces, including 30 covered spaces, for a ratio of 4.18 spaces per 1,000 square feet.

Property Summary

Townley Business Park consists of three office buildings and an undeveloped 1.34-acre parcel of land in Phoenix, Arizona. Totaling nearly 121,725 square feet, the gardenstyle business park is situated near the intersection of 23rd Avenue and Dunlap Road, easily accessed from Interstate 17 and the Loop 101 Freeway. Townley Business Park is conveniently located near the 1.4 million-square-foot MetroCenter Mall, as well as more than 60 restaurants and 11 hotels. The property offers an ample parking supply of 509 parking spaces, including 30 covered spaces, for a ratio of 4.18 spaces per 1,000 square feet. Townley Business Park is currently 80 percent leased to a variety of national and regional companies specializing in industries such as insurance, healthcare and real estate.

Property Information

  • Address: 8804, 8826, 8836 North 23rd Avenue Phoenix, AZ 85021
  • Building Type: Three-Building Office Park
  • Year Built: 1985
  • Total SF: 121,725
  • % Leased: 80%

TIC Offering

  • Offering Size: $9,160,000
  • Price Per 1% Ownership: $91,600 equity and $99,000 assumed debt
  • Minimum Investment per SPE: 3.00% = $274,800 equity and $297,000 assumed debt for a total purchase price of $571,800
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $458,000
  • 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 six 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 largely dependent on a single tenant, Cigna HealthCare of Arizona, Inc. occupies 43,586 square feet of office space, or approximately 36 percent of the property.
  • The Property may require capital improvements that could negatively affect cash flow.
  • The valuation of the property may be inaccurate due to a lack of availability of recent sales comparables for the property.

Major Tenants (6 Total Tenants)

Cigna HealthCare of Arizona, Inc.

www.cigna.com

Square Feet: 43,586 or 35.8% of the property

Lease Expiration: 2/2012

Cigna Health Care of Arizona, Inc. is a wholly-owned subsidiary of Cigna Corporation. With more than 35 years of history, Cigna Health Care of Arizona, Inc. is one of the oldest and largest health plans in Arizona. Cigna Health Care of Arizona provides health care coverage and employee benefit services to approximately 500,000 individuals throughout the state. The CIGNA Medical Group, a division of Cigna Health Care of Arizona, is the Valley’s largest multi-specialty group practice with approximately 145,000 patients and 17 offices located throughout metropolitan Phoenix. Cigna Health Care of Arizona, Inc. is a wholly owned subsidiary of Cigna Corporation. Cigna Corporation is not a guarantor of the lease with Cigna Health Care of Arizona, Inc.

Magellan Health Services of Arizona, Inc.

www.magellanhealth.com

Square Feet: 19,320 or 15.9% of the property

Lease Expiration: 12/2009*

Magellan Health Services of Arizona, Inc. is a subsidiary of Magellan Health Services, Inc., the country’s leading diversified specialty health care management organization. Magellan Health Services offers a comprehensive, integrated suite of products, including behavioral health management, radiology benefits management, and specialty pharmacy management. Magellan Health Services’ clinical and operational philosophy allows it to offer its members access to high quality, clinically appropriate and affordable healthcare tailored to each individual’s need while managing costs responsibly.

Location Information

Phoenix is in the heart of the fastest growing region in the country, serving all the major markets in the western United States. With a population of almost 1.4 million, Phoenix is the nation’s fifth largest city and serves as the centerpiece for nearly 3.4 million people in its metropolitan area. Incorporated as a city in 1881, Phoenix is the capital and most populous city in Arizona. The prehistoric Hohokam Indians first settled the area about 300 B.C. and dug a system of extensive irrigation canals for farming. Since the city was founded on the ruins of the ancient civilization, it was named Phoenix after the legendary bird that could regenerate itself. In the last two decades, the economy has diversified as rapidly as the population has grown. Many residents in the area are employed by the government as well as Arizona State University, which has enhanced the area’s population through education and its growing research capabilities. Numerous high-tech and telecommunications companies have recently relocated to the area.

Office Market

  • The second quarter saw another increase in the full service asking lease rates, rising to an average of $25.60 per square foot. This is $0.33 higher than the average in the first quarter, $25.27 per square foot, and $2.92 higher than the average one year ago, $22.68 per square foot.
  • Net absorption rose slightly from 379,014 square feet in the first quarter of 2007 to 383,100 square feet in the second quarter.
Economic Trends
  • According to the Arizona Department of Economic Security, the Arizona unemployment rate dropped in the second quarter of 2007 to 3.6 percent from 4.1 percent at the end of the first quarter.
  • Employment is forecasted to grow 3.5 percent/66,000 jobs in 2007 and 1.9 percent/36,500 jobs in 2008.

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.