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SANTA ANA, CA-NNN Realty Advisors, the parent of TIC sponsor Triple Net Properties, has raised $160 million in a private placement and is making plans to go public. The company raised the funds in a placement of NNN Realty Advisors' common stock to institutional investors and certain accredited investors, it said in an announcement Thursday afternoon.

"NNN Realty Advisors plans to register as a public company and will seek to become listed on the New York Stock Exchange by the fourth quarter of 2007," the company said. Triple Net raised the $160 million through the sale of 16 million shares of its common stock at $10 per share.

The company will use the funds to repay debt, finance asset purchases, provide short-term financing for its sponsored programs, fund co-investment of a new sponsored institutional-oriented real estate fund and for general corporate purposes. Scott Peters, CEO and president of NNN Realty Advisors, added that the company would use the funds "to facilitate the continued growth and diversity of our sponsored investment programs in order to increase the number of assets under management."

Tony Thompson, chairman of NNN Realty Advisors and founder of Triple Net, called the deal "a first in our industry." The $160 million placement is the latest in a series of financial and organizational moves by Triple Net, which is one of the most active players in the TIC arena.

In September, for example, the company sealed a deal with Wachovia Bank to provide billions of dollars in financing for Triple Net deals. The agreement also provided for Wachovia to share profits from some Triple Net deals.

Besides providing financing for the Santa Ana-based company's TIC deals, the Wachovia arrangement provides financing for Triple Net's non-traded REITs, which include a new $1-billion apartment REIT called NNN Apartment REIT. Triple Net also manages other non-traded REITS, among them G-REIT and T-REIT, as well as co-investment programs. Its $160 million placement announced Thursday was arranged through Friedman, Billings, Ramsey & Co.

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