Six Forks Station, LLC

Available for §1031 Exchange and LLC investment.

Offering Price: $32,400,000

Price Per Unit: $100,935

  • Purchase Date: 1st Quarter 2008
  • Offering LTV: 63.89%
  • Offering Price Cap Rate: 6.20%
  • 1st Year Cash Flow: 6.53%

Six Forks Station is a 321-unit garden-style apartment community in Raleigh, North Carolina. Situated on more than 32 acres, the property consists of 39 buildings and a separate building housing the clubhouse and leasing center. Built in three phases between 1985 and 1997, Six Forks Station offers tenants a healthy parking supply with 656 spaces, which results in a 2.04 space per unit parking ratio.

Available for §1031 Exchange and LLC

Loan Terms: The loan is assumed to have an overall effective fixed interest rate of 6.01%, a three-year initial term with a one-year extension option and will be interest only for the entire term. The property will be purchased with a cash down payment estimated to be $8,840,000 and a nonrecourse loan in the amount of approximately $20,700,000 (approximately 73% of the purchase price to the seller), to be made by the lender.

Property Summary

Six Forks Station is a 321-unit garden-style apartment community in Raleigh, North Carolina. Situated on more than 32 acres, the property consists of 39 buildings and a separate building housing the clubhouse and leasing center. Built in three phases between 1985 and 1997, Six Forks Station offers tenants a healthy parking supply with 656 spaces, which results in a 2.04 space per unit parking ratio. Community amenities include two swimming pools, playgrounds and multi purpose sports courts, a fitness center and an onsite laundry facility. Individual apartment units feature fireplaces, dishwashers, garden tubs, walkin closets, ceiling fans and patios and balconies in select units. The unit mix consists of 88 one-bedroom units, 161 two-bedroom units and 72 three-bedroom units. The net rentable area of the property is nearly 360,000 square feet, with an average unit size of 1,120 square feet. Six Forks Station is currently 96 percent occupied.

TIC Offering

  • Offering Size: $11,700,000
  • Price Per 1% Ownership: $117,000 equity and $207,000 assumed debt
  • Minimum Investment per SPE: 3.00% = $351,000 equity and $621,000 assumed debt for a total purchase price of $972,000
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $858,000
  • 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 four 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.

Location Information

Known as the “City of Oaks,” Raleigh is the capital of North Carolina and the county seat of Wake County. Established in 1792 and named for Sir Walter Raleigh, the city is home to a part of North Carolina’s Research Triangle Park, the largest research park in the world and one of the leading centers for high-technology research and development in the country. Raleigh and the Research Triangle Park area consistently rank among the nation’s best local economies. Numerous hightechnology and medical corporations have been attracted to the Raleigh-Durham area due to the outstanding educational and research facilities at area universities, including North Carolina State University, home to the nation’s tenth largest school of engineering, Duke University, and the University of North Carolina-Chapel Hill. Unemployment remains low, 3.5 percent as of December 2007, far below the national average.

Apartment Market

  • The vacancy rate for the Raleigh-Durham apartment market was reported at 7.4 percent at the end of the third quarter in 2007, which decreased from 8.5 percent a year before.
  • A slow down in apartment completions and nearly 20,000 new jobs in the area contributed to the rise in occupancy, which also resulted in increase in market rents. Third quarter market rents averaged $793, an increase of nearly three percent over the third quarter 2006 average market rent of $771.

ABOUT Grubb & Ellis

Information about the property contained in this material must be read in conjunction with the Confidential Private Placement Memorandum, which contains additional important risk disclosures and more specific information about the property. This is neither an offer to sell nor a solicitation of an offer to buy an LLC interest in this property. Offers are made solely pursuant to the Confidential Private Placement Memorandum. Prospective investors should consult their own tax advisors to evaluate the tax consequences of an investment. The information in this material is current as of February 5, 2008.

Triple Net Properties, LLC has time-tested experience in real estate syndications, acquisitions, leasing and property management. Triple Net currently manages a growing portfolio of over 37 million square feet of real estate in 28 states valued in excess of $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 more than $2.3 billion since 2000.