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Home > Banking News > Triple Net Properties Acquires Britannia Business Center I
Triple Net Properties Acquires Britannia Business Center I
OMNI Brokerage estimates that the securitzed Tenant in Common marketplace will grow to over $4.27 billion in equity in 2005.
Santa Ana, California, (PRWEB) October 25, 2005 -- Louis Rogers, President of Triple Net Properties, LLC, announced today the acquisition of Britannia Business Center I, on behalf of tenant in common investors.
Britannia Business Center I is a 296,537 square foot property consisting of four office buildings which are part of the 10 building Britannia Business Center located in Pleasanton, California. The property provides convenient access to Interstates 580 and 680. The property is currently 100% leased by four tenants including Robert Half International, ADP, and Individual Software Inc.
The property was purchased from Slough Estates. Steve Corea, Triple Net’s Senior Vice President of Acquisitions and Steve Leathers of Triple Net Properties represented the tenant in common buyers. Financing was provided by Wachovia Securities.
This acquisition demonstrates the growth of the 1031 Tenant-in-Common (TIC) Industry and its appeal for investors seeking the benefits of 1031 exchange, and the Q2 2005 Edition of OMNI NEWS offers a glimpse of where this market is heading.
Specifically, the securitized TIC marketplace has grown from placing close to $167 million TIC equity in 2001 to placing $1.73 billion in 2004, and it is estimated that over $4.27 billion TIC dollars will be placed this year. This is why seasoned investors, “baby boomers” seeking to build extra retirement income, and others are turning to TICs to meet their 1031 exchange requirements.
TIC properties may be any of the major property types (including office, retail, apartment or industrial) and may be located all across the nation. As a TIC owner, each investor owns an undivided, fractional interest in an entire property and shares proportionately in the net income, depreciation, interest deductions, and gains or losses. The second quarter has also seen the emergence of Sponsors designing Oil & Gas programs to integrate into the 1031 TIC marketplace. These new programs will allow further diversification and higher yields to blend into traditional RE TIC programs.
Each TIC owner receives a separate property deed and title insurance for their portion in the property investment. This provides the same rights of ownership that a single owner would enjoy. Additionally, because TICs are often “packaged” with management and financing in place they (TICs) may simplify the 1031 process for the passive real estate investor.
Investors should also take note that TIC investments do have their drawbacks such as additional fees (mostly legal and marketing fees), less liquidity compared with wholly owned investments in real estate, tax risks, and real estate market risks.
However, TIC investments provide simplicity by eliminating active management headaches. Individuals who are ready to relinquish the day-to-day burdens of being a landlord, or who own land and would like an income producing property, may benefit from TIC investments. TIC programs provide a "mailbox management" investment that may save you time and money.
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