##### Table of Contents



UNITED STATES
    SECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
    20549
 FORM 10-K
  (Mark One)þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2007oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period from
    
    to   0-51295
  NNN 2003 VALUE FUND,
    LLC
 (Exact name of registrant as
    specified in its charter)
  Delaware(State or other jurisdiction
    of
    incorporation or organization)

20-0122092(I.R.S. Employer
    Identification No.)1551 N. Tustin Avenue, Suite 200
    Santa Ana, California(Address of principal executive
    offices)

92705(Zip Code)   Registrants telephone number,
    including area code:
    (714) 667-8252
  Securities registered pursuant to
    Section 12(b) of the Act:
  Title of Each Class

Name of Each Exchange on Which RegisteredNone

None   Securities registered pursuant to
    Section 12(g) of the Act:
  Class A LLC Membership
    Interests
 Class B LLC Membership
    Interests
 Class C LLC Membership
    Interests
 (Title of class)
  Indicate
    by check mark if the registrant is a well-known seasoned issuer,
    as defined in Rule 405 of the Securities Act.
    Yes o     No þ  Indicate
    by check mark if the registrant is not required to file reports
    pursuant to Section 13 or Section 15(d)
    of the Act.
    Yes o     No þ   Yes þ     No o
  Regulation S-K Form 10-K Form 10-K.
 o
  Rule 12b-2
  Large accelerated
    filer o

Accelerated
    filer o

Non-accelerated
    filer þ

Smaller reporting
    company o   Rule 12b-2 o þ
      DOCUMENTS INCORPORATED BY REFERENCE
 None




---



##### 



NNN 2003
    VALUE FUND, LLC
    (a Delaware limited liability company)
  TABLE OF CONTENTS
  PagePART IItem 1.

Business


3Item 1A.

Risk Factors


9Item 1B.

Unresolved Staff Comments


18Item 2.

Properties


18Item 3.

Legal Proceedings


22Item 4.

Submission of Matters to a Vote of Unit
    Holders


23PART IIItem 5.

Market for Registrants Common Equity,
    Related Unit Holder Matters and Issuer Purchases of Equity
    Securities


24Item 6.

Selected Financial Data


25Item 7.

Managements Discussion and Analysis of
    Financial Condition and Results of Operations


27Item 7A.

Quantitative and Qualitative Disclosures About
    Market Risk


47Item 8.

Financial Statements and Supplementary Data


48Item 9.

Changes in and Disagreements With Accountants on
    Accounting and Financial Disclosure


48Item 9A(T)

Controls and Procedures


49Item 9B.

Other Information


49PART IIIItem 10.

Directors, Executive Officers and Corporate
    Governance


50Item 11.

Executive Compensation


53Item 12.

Security Ownership of Certain Beneficial Owners
    and Management and Related Unit Holder Matters


53Item 13.

Certain Relationships and Related Transactions
    and Director Independence


53Item 14.

Principal Accounting Fees and Services


56PART IVItem 15.

Exhibits, Financial Statement Schedules


57SIGNATURES


94EXHIBIT 21.1EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2   2




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##### Table of Contents



PART I  Item 1.
    Business.  The use of the words, we, us, or
    our refers to NNN 2003 Value Fund, LLC and its
    subsidiaries, except where the context otherwise requires.
  Our
    Company
          (714) 667-8252.
 3




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##### Table of Contents



Current
    Investment Objectives and Policies
  Business
    Strategy
    Acquisition
    Strategies
    
    targeting real estate in markets in an early stage of economic
    recovery;
    targeting unstabilized assets with significant
    lease-up
    opportunity;
    targeting assets in mature markets with existing rents
    below-market and significant near-term lease rollover; and
    targeting assets with solvable property-specific issues or
    development opportunities.    
    current and projected cash flow;
    geographic location and type;
    construction quality and condition;
    ability of tenants to pay scheduled rent;
    lease terms and rent roll, including the potential for rent
    increases;
    potential for economic growth in the tax and regulatory
    environment of the community in which the property is located;
    potential for expanding the physical layout of the property;
    occupancy and demand by tenants for properties of a similar type
    in the same geographic vicinity;
    prospects for liquidity through sale, financing or refinancing
    of the property;
    competition from existing properties and the potential for the
    construction of new properties in the area; and
    treatment under applicable federal, state and local tax and
    other laws and regulations.   4




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##### Table of Contents




    changes in general economic or local conditions;
    changes in supply of, or demand for, similar competing
    properties in an area;
    changes in interest rates and availability of permanent mortgage
    funds which may render the sale of a property difficult or
    unattractive;
    changes in tax, real estate, environmental and zoning laws;
    periods of high interest rates and tight money supply which may
    make the sale of properties more difficult;
    tenant turnover; and
    general overbuilding or excess supply in the market area.          Disposition
    Strategies
    
    our ability to sell the property at a price we believe would
    provide an attractive return to our unit holders;
    our ability to recycle capital into other properties consistent
    with our business strategy;
    our desire to exit non-performing markets;
    whether the property is strategically located;
    tenant composition and lease rollover for the property; 5




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
    general economic conditions and outlook, including job growth in
    the local market; and
    the general quality of the asset.    Operating
    Strategies
    
    aggressively leasing available space through targeted marketing,
    augmented where possible by the personnel in our managers
    local asset and property management offices;
    re-positioning our properties to include, for example, shifting
    from single to multi-tenant use in order to maximize
    desirability and utility for prospective tenants;
    controlling operating expenses by centralization of asset and
    property management, leasing, marketing, financing, accounting,
    renovation and data processing activities;
    emphasizing regular maintenance and periodic renovation to meet
    the needs of tenants and to maximize long-term returns; and
    financing acquisitions and refinancing properties when favorable
    terms are available to increase cash flow.  Financing
    Policies
        Tax
    Status
    Distribution
    Policy
   6




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Competition
        Government
    Regulations
    Costs of Compliance with the Americans with Disabilities
    Act.
  Costs of Government Environmental Regulation and Private
    Litigation.
  Use of Hazardous Substances by Some of our Tenants.
 7




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##### Table of Contents



Other Federal, State and Local Regulations.
  Significant
    Tenants
    Percentage of




Square


Lease2007 Annual


2007 Annual




Footage


ExpirationTenant

Base Rent*


Base Rent


Property

(Approximately)


DateMcKesson Information Solutions, Inc.

$
1,101,000



11.5
%

Four Resource Square


59,000


06/30/12GSA-FBI

$
1,067,000



11.2
%

901 Civic Center


49,000


03/14/08         Employees
    Financial
    Information about Industry Segments
   8




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##### Table of Contents



Item 1A.  Risk
    Factors.  Due to
    the risks involved in the ownership of real estate, there is no
    guarantee of any return on our unit holders investment and
    our unit holders may lose some or all of their
    investment.
    
    changes in the general economic climate;
    changes in local conditions such as an oversupply of space or
    reduction in demand for real estate;
    changes in interest rates and the availability of
    financing; and
    changes in laws and governmental regulations, including those
    governing real estate usage, zoning and taxes.    Our
    acquisition of value-added properties increases the risk of
    owning real estate and could adversely affect our results of
    operations, our ability to make  distributions to our unit
    holders and our ability to dispose of properties in a timely
    manner.
    Distributions
    by us have and will in the future continue to include a return
    of capital.
    We
    could be treated as a publicly-traded partnership for U.S.
    federal income tax purposes.
    We
    depend upon our tenants to pay rent, and their inability to pay
    rent may substantially reduce our revenues and cash available
    for distribution to our unit holders.
   9




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
    downturns in national, regional or local economic conditions
    where our properties are located, which generally will
    negatively impact the demand for office space and rental rates;
    changes in local market conditions such as an oversupply,
    including space available by sublease, or a reduction in demand,
    making it more difficult for us to lease space at attractive
    rental rates or at all;
    competition from other properties, which could cause us to lose
    current or prospective tenants or cause us to reduce rental
    rates;
    the ability to pay for adequate maintenance, insurance, utility,
    security and other operating costs, including real estate taxes
    and debt service payments, that are not necessarily reduced when
    circumstances such as market factors and competition cause a
    reduction in income from a property; and
    changes in federal, state or local regulations and controls
    affecting rents, prices of goods, interest rates, fuel and
    energy consumption.    The
    largest tenant at our Tiffany Square property has filed for
    protection under Chapter 11 of the United States Bankruptcy
    Code, which allows them to cancel their lease with us at any
    time.
        If we
    do not meet the Minimum Debt Service Coverage Ratio required by
    the loan on our 901 Civic Center property, or obtain a waiver
    from the lender, the lender may declare us in default of the
    loan and accelerate our obligations under the loan or foreclose
    on the 901 Civic Center property, which could have a material
    adverse affect on our operating activities and cash
    flow.
   10




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Our
    properties face significant competition.
    Competition
    with entities that have greater financial resources may limit
    our real estate investment opportunities.
    We
    incur significant costs in connection with Exchange Act
    compliance and we may become subject to liability for any
    failure to comply.
  Form 10-Q, Form 10-K Form 8-K,
 11




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The
    pending SEC investigation of our manager could result in
    lawsuits or other actions against us which could negatively
    impact our ability to pay distributions to our unit
    holders.
  In the matter of Triple Net Properties, LLC.
  and/or Accounting for Contingencies.
  Erroneous
    disclosures in the prior performance tables in our private
    placement offering could result in lawsuits or other actions
    against us which could have a material adverse effect upon our
    business and results of operations.
    Lack
    of diversification and illiquidity of real estate may make it
    difficult for us to sell underperforming properties or recover
    our investment in one or more properties.
   12




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Lack
    of geographic diversity may expose us to regional economic
    downturns that could adversely impact our operations or our
    ability to recover our investment in one or more
    properties.
    Our
    properties may face competition from other properties owned,
    operated or managed by our manager or its
    affiliates.
    Our
    properties depend upon the Missouri economy and the demand for
    commercial property.
    Losses
    for which we either could not or did not obtain insurance will
    adversely affect our earnings and we may be unable to comply
    with insurance requirements contained in mortgage or other
    agreements due to high insurance costs.
   13




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Our
    co-ownership arrangements with affiliated entities may not
    reflect solely our unit holders best interests and may
    subject these investments to increased risks.
  and/or
  Our
    co-ownership arrangements contain risks not present in
    wholly-owned properties.
    
    the risk that the co-owner(s) in the investment might become
    bankrupt;
    the risk that the co-owner(s) may at any time have economic or
    business interests or goals which are inconsistent with our
    business interests or goals;
    the risk that the co-owner(s) may be unable to make required
    payments on loans under which we are jointly and severally
    liable;
    the risk that all the co-owners may not approve refinancings,
    leases and lease amendments requiring unanimous consent of
    co-owners that would have adverse consequences for our unit
    holders,
    the risk that the co-owner(s) may breach the terms of a loan
    secured by a co-owned property, thereby triggering an event of
    default that affords the lender the right to exercise all of its
    remedies under the loan documents, including possible
    foreclosure of the entire property; or
    the risk that the co-owner(s) may be in a position to take
    action contrary to our instructions or requests or contrary to
    our policies or objectives, such as selling a property at a time
    when it would have adverse consequences to us.    There
    is currently no public market for our units. Therefore, it will
    likely be difficult for our unit holders to sell their units
    and, if our unit holders are able to sell their units, they may
    elect to do so at a substantial discount from the price our unit
    holders paid.
    Our
    success is dependent on the performance of our manager, its
    executive officers and employees.
   14




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##### Table of Contents



and/or
  Our
    use of borrowings to partially fund acquisitions and
    improvements on properties could result in foreclosures and
    unexpected debt service expenses upon refinancing, both of which
    could have an adverse impact on our operations and cash flow,
    and restrictive covenants in our loan documents may restrict our
    operating or acquisition activities.
          The
    pending SEC investigation of our manager could result in
    defaults or alleged defaults under our loan documents or limit
    our ability to obtain debt financing in the
    future.
   15




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If we
    acquire assets at a time when the commercial real estate market
    is experiencing substantial influxes of capital investment and
    competition for properties, the real estate we purchase may not
    appreciate or may decrease in value.
    Since
    our cash flow is not assured, we may not pay distributions in
    the future.
    Our
    managers past performance is not a predictor of our future
    results.
    We do
    not expect to register as an investment company under the
    Investment Company Act of 1940 and, therefore, our unit holders
    will not be entitled to its benefits and protections; and our
    operating in a manner to avoid registration may reduce cash
    available for distributions to unit holders.
    
    limitations on the capital structure of the entity;
    restrictions on certain investments;
    prohibitions on transactions with affiliated entities; and
    public reporting disclosures, record keeping, voting procedures,
    proxy disclosure and similar corporate governance rules and
    regulations.     16




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##### Table of Contents



If we
    are required to register as an investment company under the Act,
    the additional expenses and operational limitations associated
    with such registration may reduce our unit holders
    investment return.
        Dramatic
    increases in insurance rates could adversely affect our cash
    flow and our ability to make cash distributions to our unit
    holders.
    The
    conflicts of interest of our manager and its executive officers
    with us may mean that we will not be managed by our manager
    solely in the best interests of our unit holders.
    and/or
  
    limit the time and services that our manager and its executive
    officers devote to us, because they will be providing similar
    services to G REIT Liquidating Trust, T REIT Liquidating
    Trust, NNN 2002 Value Fund, LLC, Grubb & Ellis
    Apartment REIT, Inc., Grubb & Ellis Healthcare REIT,
    Inc. and other real estate programs and properties;
    impair our ability to compete for tenants in geographic areas
    where other properties are advised by our manager and its
    affiliates; and 17




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##### Table of Contents




    impair our ability to compete for the acquisition or disposition
    of properties with other real estate entities that are also
    advised by our manager and its affiliates and seeking to acquire
    or dispose of properties at or about the same time as us.    The
    absence of arms length bargaining may mean that our
    agreements are not as favorable to unit holders as these
    agreements otherwise would have been.
   Item 1B.  Unresolved
    Staff Comments.    Item 2.
    Properties.  Real
    Estate Investments
     18




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##### Table of Contents



% Total of





AnnualGLA

% of


%

Date

Annual

Annual


Physical


Rent PerProperty

Property Location

(Sq Ft)

GLA


Owned

Acquired

Rent (1)

Rent


Occupancy


Sq Ft. (2)Consolidated Properties:Executive Center I

Dallas, TX


205,000


24.5
%


100.0%

12/30/2003

$
763,000


8.0
%


21.8
%

$
17.02901 Civic

Santa Ana, CA


99,000


11.8



96.9%

4/24/2006


1,515,000


15.8



70.4
%

$
21.65Tiffany Square

Colorado Springs, CO


184,000


22.0



100.0%

11/15/2006


1,318,000


13.8



78.0
%

$
9.17Four Resource Square

Charlotte, NC


152,000


18.2



100.0%

3/7/2007


2,378,000


24.9



83.4
%

$
18.78The Sevens Building

St. Louis, MO


197,000


23.5



100.0%

10/25/2007


3,584,000


37.5



80.3
%

$
22.63Total /Weighted Avg.




837,000


100.0
%






$
9,558,000


100.0
%


64.9
%

$
17.59Unconsolidated Properties:Executive Center II & III

Dallas, TX


381,000






41.1%

8/1/2003

$
4,409,000






88.0
%

$
13.14Enterprise Technology Center

Scotts Valley, CA


370,000






8.5%

5/7/2004


6,842,000






44.6
%

$
41.43Chase Tower

Austin, TX


389,000






14.8%

7/3/2006


3,416,000






81.0
%

$
10.82Totals /Weighted Avg.




1,140,000










$
14,667,000






71.5
%

$
17.81         Ownership


December 31,Description

Location


Percentage


2007


2006Executive Center II & III


Dallas, TX



41.1%


$
2,180,000


$
2,662,000Enterprise Technology Center


Scotts Valley, CA



8.5%



2,232,000



2,528,000Chase Tower


Austin, TX



14.8%



1,328,000



2,108,000Total









$
5,740,000


$
7,298,000     
    we believe all of our properties are adequately covered by
    insurance and are suitable for their intended purposes;
    our properties are located in markets where we are subject to
    competition in attracting new tenants and retaining current
    tenants; and
    depreciation is provided on a straight-line basis over the
    estimated useful lives of the buildings, ranging primarily from
    15 to 39 years and over the shorter of the lease term or
    useful lives of the tenant improvements. 19




---



##### Table of Contents



NNN 2003
    Value Fund, LLC
  
    901 Civic
    Center Ownership
    
 20




---



##### Table of Contents



Chase
    Tower Ownership
    
  Enterprise
    Technology Center Ownership
    
  Executive
    Center II & III Ownership
    
 21




---



##### Table of Contents



Lease
    Expirations
    % of Leased





% of TotalArea


Annual Rent


Annual RentNumber of

Total Sq. Ft. of


Represented by


Under


Represented byYear Ending December 31

Leases Expiring

Expiring Leases


Expiring Leases


Expiring Leases


Expiring Leases (1)2008


19


90,000



17.1
%

$
1,975,000



20.7
%2009


12


58,000



11.1



1,176,000



12.32010


20


45,000



8.6



1,035,000



10.82011


13


46,000



8.8



920,000



9.62012


8


82,000



15.7



1,585,000



16.62013


6


161,000



30.8



1,819,000



19.02014


2


22,000



4.2



423,000



4.42015


3


16,000



3.1



204,000



2.22016

















2017


1


3,000



0.6



66,000



0.7Thereafter

















Total


84


523,000



100.0
%

$
9,203,000



96.3
%     Geographic
    Diversification/Concentration Table
    Aggregate


Approximate


Current


ApproximateNo. of

Rentable


% of Rentable


Annual Base


% of AggregateState

Properties

Square Feet


Square Feet


Rent


Annual RentTexas


1


205,000



24.5
%

$
763,000



8.0
%California


1


99,000



11.8



1,515,000



15.8Colorado


1


184,000



22.0



1,318,000



13.8North Carolina


1


152,000



18.2



2,378,000



24.9Missouri


1


197,000



23.5



3,584,000



37.5Total


5


837,000



100.0
%

$
9,558,000



100.0
%   Indebtedness
    Item 3.
    Legal
    Proceedings.  SEC
    Investigation
  In the matter of Triple Net Properties, LLC.
 22




---



##### Table of Contents



and/or Accounting for Contingencies.
  Prior
    Performance Tables
    Litigation
    Item 4.
    Submission
    of Matters to a Vote of Unit Holders.   23




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##### Table of Contents



PART II  Item 5.
    Market
    for Registrants Common Equity, Related Unit Holder Matters
    and Issuer Purchases of Equity Securities.  Market
    Information
      Unit
    Holders
    Distributions
      Quarters Ended

2007


2006


2005March 31

$
88


$
338


$
88June 30

$
147


$
88


$
88September 30

$
88


$
88


$
88December 31

$
88


$
88


$
88     Quarters Ended

2007


2006


2005March 31

$
88


$
338


$
88June 30

$
147


$
88


$
88September 30

$
88


$
88


$
88December 31

$
88


$
88


$
88     Quarters Ended

2007


2006


2005March 31

$
88


$
338


$
88June 30

$
147


$
88


$
88September 30

$
88


$
88


$
88December 31

$
88


$
88


$
88     per-unit
 24




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##### Table of Contents



Equity
    Compensation Plan Information
    Item 6.
    Selected
    Financial Data.    December 31,Selected Financial Data

2007


2006


2005


2004


2003BALANCE SHEET DATA:Total assets

$
108,681,000


$
77,056,000


$
145,190,000
(1)

$
67,334,000


$
14,114,000Mortgage loans payable, including properties held for sale

$
71,682,000


$
37,186,000


$
93,492,000


$
23,625,000


$
4,500,000Unit holders equity

$
30,865,000


$
34,772,000


$
40,521,000


$
37,102,000


$
7,628,000Book value per unit

$
3,095.79


$
3,487.66


$
4,052.10


$
3,710.20


$
4,042.40   For the PeriodfromJune 19, 2003(Date of Inception)throughYears Ended December 31,


December 31,2007


2006


2005


2004


2003OPERATING DATA:Rental income

$
7,024,000


$
1,997,000


$
776,000


$
653,000


$
Rental expense

$
4,292,000


$
1,707,000


$
971,000


$
1,084,000


$
11,000General and administrative expense

$
1,300,000


$
742,000


$
1,272,000


$
339,000


$
7,000Interest expense

$
4,416,000


$
1,231,000


$
447,000


$
638,000


$
(Loss) income from continuing operations

$
(7,408,000
)

$
(3,130,000
)

$
858,000


$
(2,157,000
)

$
(116,000
)(Loss) income from discontinued operations

$
(1,465,000
)

$
(3,545,000
)

$
253,000


$
(145,000
)

$
Gain on sale of real estate

$
9,702,000


$
7,056,000


$
5,802,000


$



$
Net income (loss)

$
829,000


$
381,000


$
6,913,000


$
(2,302,000
)

$
(116,000
)Net (loss) income per unit:Continuing operations  basic and diluted(2)

$
(743.03
)

$
(313.75
)

$
85.80


$
(350.28
)

$
(178.74
)Discontinued operations  basic and diluted(2)

$
826.18


$
351.94


$
605.50


$
(23.54
)

$
Net income (loss) per unit  basic and diluted(2)

$
83.15


$
38.19


$
691.30


$
(373.82
)

$
(178.74
)Distributions paid

$
4,090,000


$
5,997,000


$
3,493,000


$
1,908,000


$
35,000Distributions per common unit(2)

$
410.23


$
600.49


$
349.30


$
309.84


$
53.93Weighted-average number of units outstanding  basic
    and diluted(2)


9,970



9,976



10,000



6,158



649 25




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##### Table of Contents



For the PeriodfromJune 19, 2003(Date of Inception)throughYears Ended December 31,


December 31,2007


2006


2005


2004


2003OTHER DATA:Cash flows (used in) provided by operating activities

$
(4,018,000
)

$
(4,789,000
)

$
238,000


$
2,476,000


$
174,000Cash flows (used in) provided by investing activities

$
(17,530,000
)

$
15,867,000


$
(64,529,000
)

$
(45,158,000
)

$
(9,932,000
)Cash flows provided by (used in) financing activities

$
29,112,000


$
(21,194,000
)

$
65,155,000


$
49,953,000


$
12,383,000Number of consolidated properties at year end


5



6
(3)


6
(3)


5



1Rentable square feet


837,000



763,000



951,000



649,000



208,000Occupancy of consolidated properties


64.9
%


52.8
%


66.8
%


62.4
%


21.4
%     (1)
    
    Total assets increased in 2005 primarily due to the acquisition
    of the 3500 Maple property. See Notes to Consolidated Financial
    Statements, Note 3, Investments in Real Estate 
    2005 Acquisitions.(2)
    
    Net income (loss) and distributions per unit are based upon the
    weighted-average number of units outstanding.(3)
    
    Total number of consolidated properties includes the Daniels
    Road land parcel. 26




---



##### Table of Contents



Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.  The use of the words we, us, or
    our refers to NNN 2003 Value Fund, LLC and its
    subsidiaries, except where the context otherwise requires.
  Form 10-K.
  Forward-Looking
    Statements
    Overview
    and Background
     27




---



##### Table of Contents



Business
    Strategy
    Acquisitions
    and Dispositions
    Acquisitions
    in 2007
  Consolidated
    Properties
  Four
    Resource Square  Charlotte, North Carolina
    The
    Sevens Building  St. Louis, Missouri
   28




---



##### Table of Contents



Potential
    Property Acquisitions
    
    receipt of a satisfactory environmental survey and property
    appraisal for each property;
    no material adverse change occurring in the properties, the
    tenants or in the local economic conditions; and
    receipt of sufficient financing.    Dispositions
    in 2007
  Consolidated
    Properties
  Interwood 
    Houston, Texas
    Daniels
    Road land parcel  Heber City, Utah
    Woodside 
    Beaverton, Oregon
   29




---



##### Table of Contents



Acquisitions
    in 2006
  Consolidated
    Properties
  901 Civic
    Center Drive Building  Santa Ana,
    California
    Tiffany
    Square  Colorado Springs, Colorado
    Unconsolidated
    Properties
  Chase
    Tower  Austin, Texas
    Dispositions
    in 2006
  Consolidated
    Properties
  Oakey
    Building  Las Vegas, Nevada
    3500
    Maple  Dallas, Texas
   30




---



##### Table of Contents



Acquisitions
    in 2005
  Consolidated
    Properties
  Interwood 
    Houston, Texas
    Woodside
    Corporate Park  Beaverton, Oregon
    Daniels
    Road land parcel  Heber City, Utah
    3500
    Maple  Dallas, Texas
    2005
    Dispositions
  Consolidated
    Properties
  Southwood
    Tower  Houston, Texas
     31




---



##### Table of Contents



Financial
    Plaza  Omaha, Nebraska
    Satellite
    Place  Atlanta, Georgia
    Unconsolidated
    Properties
  Emerald
    Plaza Building  San Diego, California
    801 K Street 
    Sacramento, California
    Critical
    Accounting Policies
  Use of
    Estimates
   32




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##### Table of Contents



Revenue
    Recognition and Allowance for Doubtful Accounts
  Accounting for Leases
  Impairment
    
    a significant negative industry or economic trend;
    a significant underperformance relative to historical or
    projected future operating results; and
    a significant change in the manner in which the asset is used.      Purchase
    Price Allocation
  Business
    Combinations lease-up
     33




---



##### Table of Contents



Factors
    Which May Influence Results of Operations
  Rental
    Income
    Scheduled
    Lease Expirations
    Sarbanes-Oxley
    Act
      Results
    of Operations
   34




---



##### Table of Contents



Comparison
    of the years ended December 31, 2007 and 2006
  Years EndedDecember 31,


Change2007


2006


$


%Revenue:Rental income

$
7,024,000


$
1,997,000


$
5,027,000



251.7
%Expense:Rental expense


4,292,000



1,707,000



2,585,000



151.4
%General and administrative


1,300,000



742,000



558,000



75.2
%Depreciation and amortization


3,774,000



987,000



2,787,000



282.4
%9,366,000



3,436,000



5,930,000



172.6
%Loss before other income (expense) and discontinued operations


(2,342,000
)


(1,439,000
)


(903,000
)


(62.8
)%Other income (expense):Interest expense (including amortization of deferred financing
    costs)


(4,416,000
)


(1,231,000
)


(3,185,000
)


(258.7
)%Interest and dividend income


544,000



452,000



92,000



20.4
%Gain on sale of marketable securities


12,000



134,000



(122,000
)


(91.0
)%Equity in losses of unconsolidated real estate


(1,421,000
)


(1,139,000
)


(282,000
)


(24.8
)%Other income


64,000



74,000



(10,000
)


(13.5
)%Minority interests


151,000



19,000



132,000



694.7
%Loss from continuing operations


(7,408,000
)


(3,130,000
)


(4,278,000
)


(136.7
)%Discontinued operations:Gain on sale of real estate


9,702,000



7,056,000



2,646,000



37.5
%Loss from discontinued operations


(1,465,000
)


(3,545,000
)


2,080,000



58.7
%Total income from discontinued operations


8,237,000



3,511,000



4,726,000



134.6
%Net income

$
829,000


$
381,000


$
448,000



117.6
%   Rental
    Income
    Rental
    Expense
    General
    and Administrative Expense
   35




---



##### Table of Contents



Depreciation
    and Amortization Expense
    Interest
    Expense
    Gain on
    Sale of Marketable Securities
    Equity in
    Losses of Unconsolidated Real Estate
    Minority
    Interests
    Loss from
    Discontinued Operations
   36




---



##### Table of Contents



Gain on
    Sale of Real Estate including Minority Interests Related to Sale
    of Real Estate
    Net
    Income
    Comparison
    of the years ended December 31, 2006 and 2005
  Years EndedDecember 31,


Change2006


2005


$


%Revenue:Rental income

$
1,997,000


$
776,000


$
1,221,000



157.3
%Expense:Rental expense


1,707,000



971,000



736,000



75.8
%General and administrative


742,000



1,272,000



(530,000
)


(41.7)
%Depreciation and amortization


987,000



332,000



655,000



197.3
%3,436,000



2,575,000



861,000



33.4
%Loss before other income (expense) and discontinued operations


(1,439,000
)


(1,799,000
)


360,000



20.0
%Other income (expense):Interest expense (including amortization of deferred financing
    costs)


(1,231,000
)


(447,000
)


(784,000
)


(175.4)
%Interest and dividend income


452,000



416,000



36,000



8.7
%Gain on sale of marketable securities


134,000



344,000



(210,000
)


(61.0)
%Equity in (losses) earnings and gain on sale of unconsolidated
    real estate


(1,139,000
)


2,510,000



(3,649,000
)


(145.4)
%Other income


74,000







74,000



Minority interests


19,000



(166,000
)


185,000



111.4
%(Loss) income from continuing operations


(3,130,000
)


858,000



(3,988,000
)


(464.8)
%Discontinued operations:Gain on sale of real estate


7,056,000



5,802,000



1,254,000



21.6
%(Loss) income from discontinued operations


(3,545,000
)


253,000



(3,798,000
)


(1,501.2)
%Total income from discontinued operations


3,511,000



6,055,000



(2,544,000
)


(42.0)
%Net income

$
381,000


$
6,913,000


$
(6,532,000
)


(94.5)
%   Rental
    Income
   37




---



##### Table of Contents



Rental
    Expense
    General
    and Administrative Expense
    Depreciation
    and Amortization Expense
    Interest
    Expense
    Gain on
    Sale of Marketable Securities
    Equity in
    Earnings (Losses) and Gain on Sale of Unconsolidated Real
    Estate
    Minority
    Interests
   38




---



##### Table of Contents



(Loss)
    income from Discontinued Operations
    Gain on
    Sale of Real Estate including Minority Interests Related to Sale
    of Real Estate
    Net
    Income
    Liquidity
    and Capital Resources
  Current
    Sources of Capital and Liquidity
    Factors
    Which May Influence Future Sources of Capital and
    Liquidity
  SEC
    Investigation
  In the matter of Triple Net Properties, LLC.
  and/or Accounting for Contingencies.
 39




---



##### Table of Contents



Prior
    Performance Tables
    Debt
    Financing
          Weighted-AverageTotal Mortgage Loans Payable

Interest Rate as ofas of December 31,

December 31,2007

2006

2007


2006Mortgage loans payable

$
71,682,000

$
37,186,000


7.19
%


8.72
%Fixed rate and variable rate:Fixed rate

$
26,000,000

$
5,000,000


6.73
%


10.00
%Variable rate

$
45,682,000

$
32,186,000


7.45
%


8.52
%   30-day
 40




---



##### Table of Contents



and/or
    Other
    Liquidity Needs
      and/or and/or
     41




---



##### Table of Contents



Cash
    Flows
  Comparison
    of the Years Ended December 31, 2007 and 2006
          Comparison
    of the Years Ended December 31, 2006 and 2005
         42




---



##### Table of Contents



Capital
    Resources
  General
        and/or and/or
     43




---



##### Table of Contents



Unconsolidated
    Debt
    As of December 31,2007


2006NNN 2003





NNN 2003Mortgage loans


Value Fund,


Mortgage loans


Value Fund,Ownership


payable and Other


LLCs portion


payable and Other


LLCs portionProperty

Percentage


Debt Balance


of Debt


Debt Balance


of DebtEnterprise Technology Center


8.5%


$
34,263,000


$
2,912,000


$
34,943,000


$
2,970,000Chase Tower


14.8%



63,633,000



9,418,000



56,764,000



8,401,000Executive Center II & III


41.1%



16,348,000



6,719,000



15,914,000



6,541,000Total





$
114,244,000


$
19,049,000


$
107,621,000


$
17,912,000     Unconsolidated
    Debt Due to Related Parties
    Amount of Loan

NNN 2003as of

Value Fund,Ownership

December 31,

LLCs PortionProperty/Issue Date

Percentage

2007 and 2006

of DebtExecutive Center II & III:06/08/05


41.1%


$
1,000,000

$
411,00009/12/05


41.1%



200,000


82,00010/18/05


41.1%



240,000


99,00011/14/05


41.1%



5,000


2,000Total





$
1,445,000

$
594,000   Insurance
    Coverage
  Property
    Damage, Business Interruption, Earthquake and
    Terrorism
    Debt
    Service Requirements
   44




---



##### Table of Contents



Contractual
    Obligations
    Payments Due by PeriodLess than 1 Year


1-3 Years


4-5 Years


More than 5 Years(2008)


(2009-2010)


(2011-2012)


(After 2012)


TotalPrincipal payments  variable rate debt

$
10,926,000


$
34,756,000


$



$



$
45,682,000Principal payments  fixed rate debt


5,000,000



21,000,000











26,000,000Interest payments  variable rate debt (based on rate
    in effect as of December 31, 2007)


2,833,000



1,892,000











4,725,000Interest payments  fixed rate debt


1,625,000



2,291,000











3,916,000Tenant improvement and lease commission obligations


2,358,000















2,358,000Total

$
22,742,000


$
59,939,000


$



$



$
82,681,000   Off-Balance
    Sheet Arrangements
    Inflation
    Subsequent
    Events
  Rental
    Income
   45




---



##### Table of Contents



Mortgage
    Loans Payable and Other Debt
  Executive
    Center
    901 Civic
    Center
  Form 10-Q,
  Recently
    Issued Accounting Pronouncements
  Fair Value
    Measurement, SFAS No. 157-1, Application of FASB Statement No. 157 to FASB Statement
    No. 13 and Other Accounting Pronouncements That Address
    Fair Value Measurements for Purposes of Lease Classification or
    Measurement under Statement 13, FAS 157-1. FAS 157-1 FAS 157-1 Accounting for Leases FAS 157-1 FAS 157-1
 46




---



##### Table of Contents



The
    Fair Value Option for Financial Assets and Financial
    Liabilities
  Business Combinations
  Noncontrolling Interests in Consolidated Financial
    Statements  An Amendment of ARB No. 51,
  Disclosures about Derivative Instruments and Hedging
    Activities
 Item 7A.  Quantitative
    and Qualitative Disclosures About Market Risk.   47




---



##### Table of Contents



Expected Maturity Date2008


2009


2010


2011


2012


Thereafter


Total


Fair ValueFixed rate mortgage loans payable

$
5,000,000


$



$
21,000,000


$



$



$



$
26,000,000


$
25,464,000Average interest rate on maturing fixed rate mortgage loans
    payable


10.00%







5.95%















6.73%



Variable rate mortgage loans payable

$
10,926,000


$
13,225,000


$
21,531,000


$



$



$



$
45,682,000


$
45,791,000Average interest rate on maturing variable rate mortgage loans
    payable (based on rates in effect as of December 31, 2007)


8.22%



7.70%



6.90%















7.45%



           Expected Maturity Date2007


2008


2009


2010


2011


Thereafter


Total


Fair ValueFixed rate mortgage loans payable

$
5,000,000


$



$



$



$



$



$
5,000,000


$
5,195,000Average interest rate on maturing fixed rate mortgage loans
    payable


10.00%























10.00%



Variable rate mortgage loans payable

$
5,500,000


$
26,686,000


$



$



$



$



$
32,186,000


$
33,797,000Average interest rate on variable rate maturing mortgage loans
    payable (based on rates in effect as of December 31, 2006)


8.35%



8.56%



















8.52%



         Item 8.
    Financial
    Statements and Supplementary Data.    Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure.   48




---



##### Table of Contents



Item 9A(T).
    Controls
    and Procedures.  Evaluation of disclosure controls and
    procedures.
  Rules 13a-15(e) 15d-15(e)
  Managements Report on Internal Control over
    Financial Reporting. Rules 13a-15(f) 15d-15(f).
      Changes in internal control over financial
    reporting.
  Form 10-K Form 10-K.
  Item 9B.
    Other
    Information.   49




---



##### Table of Contents



PART III  Item 10.
    Directors,
    Executive Officers and Corporate Governance.    Name

Age

Position

Term of OfficeRichard T. Hutton, Jr.


56


Chief Executive Officer

Since September 2005Francene LaPoint


43


Chief Financial Officer of Grubb & Ellis Realty Investors,
    LLC, the manager of NNN 2003 Value Fund, LLC

Since November 2006   Richard T. Hutton, Jr.
  Francene LaPoint
  Executive
    Officers of our Manager
      
    gross negligence or fraud of our manager;
    willful misconduct or willful breach of the Operating Agreement
    by our manager;
    bankruptcy, insolvency or inability of our manager to meet its
    obligations as they come due. 50




---



##### Table of Contents



Name

Age

Position

Term of OfficeScott D. Peters


50


Chief Executive Officer

Since 2006Francene LaPoint


43


Chief Financial Officer

Since 2006Andrea R. Biller


58


General Counsel
    and Executive Vice President

Since 2003
    Since 2007Jeffrey T. Hanson


37


Chief Investment Officer

Since 2006Richard T. Hutton, Jr.


56


Executive Vice President

Since 2003Talle A. Voorhies


60


Executive Vice President and Secretary

Since 1998       Scott D. Peters
  Andrea R. Biller,
  Jeffrey T. Hanson
 51




---



##### Table of Contents



Talle A. Voorhies
  Fiduciary
    Relationship of our Manager to Us
        Committees
    of our Board of Directors
    Section 16(a)
    Beneficial Ownership Reporting Compliance
     52




---



##### Table of Contents



Code of
    Ethics
    Item 11.
    Executive
    Compensation.  Compensation
    of Executive Officers
  Form 10-K.
    Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Unit Holder Matters.  PRINCIPAL
    UNIT HOLDERS
    
    each person who is known to us to hold more than 5.0% interest
    in us;
    our chief executive officer;
    our managers executive officers as a group.  Beneficially

Percentage ofOwned

OutstandingName

No. of Units

UnitsRichard T. Hutton, Jr.

None

0.0%Our managers executive officers as a group(6)

None

0.0%Total

None

0.0%   (1)
    
    The address for all persons named is 1551 N. Tustin
    Avenue, Suite 200, Santa Ana, California 92705.    Equity
    Compensation Plan Information
    Item 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence.    The
    Management Agreement
   53




---



##### Table of Contents



Property
    Management Fees
    Real
    Estate Acquisition Fees
    Real
    Estate Disposition Fees
    Lease
    Commissions
    Accounting
    Fees
    Construction
    Fees
    Loan
    Fees
   54




---



##### Table of Contents



Acquisition
    Fees
    Related
    Party Accounts Receivable/Payable
    Related
    Party Financing
  365-day 365-day 365-day
    Unconsolidated
    Debt Due to Related Parties
  and/or
 55




---



##### Table of Contents



Amount of Loan


NNN 2003as of


Value Fund,Ownership

December 31,


LLCs PortionProperty/Issue Date

Percentage

2007 and 2006


of DebtExecutive Center II & III:06/08/05

41.1%

$
1,000,000


$
411,00009/12/05

41.1%


200,000



82,00010/18/05

41.1%


240,000



99,00011/14/05

41.1%


5,000



2,000Total



$
1,445,000


$
594,000   Item 14.
    Principal
    Accounting Fees and Services.      Services

2007


2006Audit Fees (1)

$
481,000


$
535,000Audit-Related Fees (2)






47,000Tax Fees (3)






2,000All Other Fees (4)






Total

$
481,000


$
584,000            56




---



##### Table of Contents



PART IV  Item 15.
    Exhibits,
    Financial Statement Schedules.  (a)(1) Financial
    Statements:
   INDEX TO
    CONSOLIDATED FINANCIAL STATEMENTS
  PageNNN 2003 VALUE FUND, LLC:Report of Independent Registered Public
    Accounting Firm


58Consolidated Balance Sheets as of
    December 31, 2007 and 2006


59Consolidated Statements of Operations and
    Comprehensive Income For the Years Ended December 31, 2007,
    2006 and 2005


60Consolidated Statements of Unit Holders
    Equity For the Years Ended December 31, 2007, 2006 and
    2005


61Consolidated Statements of Cash Flows For the
    Years Ended December 31, 2007, 2006 and 2005


62Notes to Consolidated Financial Statements


63   (a)(2) Financial
    Statement Schedules:
    PageValuation and Qualifying Accounts
    (Schedule II)


92Real Estate and Accumulated Depreciation
    (Schedule III)


93     (a)(3) Exhibits:
    (b) Exhibits:
    (c) Financial
    Statement Schedules:
  PageValuation and Qualifying Accounts
    (Schedule II)


92Real Estate and Accumulated Depreciation
    (Schedule III)


93  57




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  
        Deloitte &
    Touche, LLP
    58




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  CONSOLIDATED
    BALANCE SHEETS
 As of
    December 31, 2007 and 2006
  December 31,2007


2006ASSETSReal estate investments:Operating properties, net

$
74,597,000


$
28,855,000Properties held for sale, net






26,899,000Investments in unconsolidated real estate


5,740,000



7,298,00080,337,000



63,052,000Cash and cash equivalents


8,208,000



644,000Investment in marketable securities


1,054,000



Accounts receivable, net


434,000



750,000Accounts receivable from related parties


594,000



589,000Restricted cash


3,985,000



1,042,000Identified intangible assets, net


8,848,000



4,325,000Other assets  properties held for sale






3,044,000Other assets, net


5,221,000



1,190,000Notes receivable






2,420,000Total assets

$
108,681,000


$
77,056,000LIABILITIES, MINORITY INTERESTS AND UNIT HOLDERS
    EQUITYMortgage loans payable

$
71,682,000


$
15,550,000Mortgage loans payable secured by properties held for sale






21,636,000Accounts payable and accrued liabilities


4,009,000



2,279,000Accounts payable due to related parties


240,000



920,000Identified intangible liabilities, net


195,000



Other liabilities  properties held for sale, net






366,000Security deposits, prepaid rent and other liabilities


1,008,000



647,000Total liabilities


77,134,000



41,398,000Minority interests


682,000



886,000Commitments and contingencies (Note 14)Unit holders equity


31,511,000



34,772,000Accumulated other comprehensive loss


(646,000)



Total unit holders equity


30,865,000



34,772,000Total liabilities, minority interests and unit holders
    equity

$
108,681,000


$
77,056,000    59




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  CONSOLIDATED
    STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
 For the
    Years Ended December 31, 2007, 2006 and 2005
  Years Ended December 31,2007


2006


2005Revenue:Rental income

$
7,024,000


$
1,997,000


$
776,000Expense:Rental expense


4,292,000



1,707,000



971,000General and administrative


1,300,000



742,000



1,272,000Depreciation and amortization


3,774,000



987,000



332,000Total expense


9,366,000



3,436,000



2,575,000Loss before other income (expense) and discontinued operations


(2,342,000)



(1,439,000)



(1,799,000)Other income (expense):Interest expense (including amortization of deferred financing
    costs)


(4,416,000)



(1,231,000)



(447,000)Interest and dividend income


544,000



452,000



416,000Gain on sale of marketable securities


12,000



134,000



344,000Equity in (losses) earnings and gain on sale of unconsolidated
    real estate


(1,421,000)



(1,139,000)



2,510,000Other income


64,000



74,000



Minority interests


151,000



19,000



(166,000)(Loss) income from continuing operations


(7,408,000)



(3,130,000)



858,000Discontinued operations:Gain on sale of real estate including minority interests related
    to sale of real estate


9,702,000



7,056,000



5,802,000(Loss) income from discontinued operations


(1,465,000)



(3,545,000)



253,000Total income from discontinued operations


8,237,000



3,511,000



6,055,000Net income

$
829,000


$
381,000


$
6,913,000Comprehensive income:Net income

$
829,000


$
381,000


$
6,913,000Unrealized (loss) gain on marketable securities


(646,000)



1,000



(1,000)Comprehensive income

$
183,000


$
382,000


$
6,912,000Net (loss) income per unit:Continuing operations  basic and diluted

$
(743.03)


$
(313.75)


$
85.80Discontinued operations  basic and diluted


826.18



351.94



605.50Total net income per unit  basic and diluted

$
83.15


$
38.19


$
691.30Weighted-average number of units outstanding  basic
    and diluted


9,970



9,976



10,000    60




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  CONSOLIDATED
    STATEMENTS OF UNIT HOLDERS EQUITY
 For the
    Years Ended December 31, 2007, 2006 and 2005
  Number of Units


TotalBALANCE  January 1, 2005


10,000


$
37,102,000Distributions






(3,493,000)Net income






6,913,000Unrealized loss on marketable securities






(1,000)BALANCE  December 31, 2005


10,000


$
40,521,000Units repurchased


(30)



(134,000)Distributions






(5,997,000)Net income






381,000Unrealized gain on marketable securities






1,000BALANCE  December 31, 2006


9,970


$
34,772,000Distributions






(4,090,000)Net income






829,000Unrealized loss on marketable securities






(646,000)BALANCE  December 31, 2007


9,970


$
30,865,000    61




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
 For the
    Years Ended December 31, 2007, 2006 and 2005
  Years Ended December 31,2007


2006


2005CASH FLOWS FROM OPERATING ACTIVITIES:Net income

$
829,000


$
381,000


$
6,913,000Adjustments to reconcile net income to net cash (used in)
    provided by operating activities:Gain on sale of real estate


(9,702,000)



(7,056,000)



(5,802,000)Gain on sale of marketable securities


(12,000)



(134,000)



(344,000)Depreciation and amortization (including deferred financing
    costs and above/below market leases and deferred rent)


3,770,000



2,947,000



1,757,000Distributions received in excess of equity in (losses) earnings
    from investments and gain on sale in unconsolidated real estate


1,421,000



1,322,000



(1,695,000)Minority interests


(151,000)



1,423,000



330,000Allowance for doubtful accounts


228,000



(2,000)



2,000Change in operating assets and liabilities:Accounts receivable


97,000



(364,000)



(304,000)Other assets


645,000



(939,000)



(37,000)Accounts payable and accrued liabilities


(880,000)



(1,835,000)



(210,000)Security deposits and prepaid rent


(263,000)



(532,000)



(372,000)Net cash (used in) provided by operating activities


(4,018,000)



(4,789,000)



238,000CASH FLOWS FROM INVESTING ACTIVITIES:Acquisition of real estate properties


(53,473,000)



(26,060,000)



(98,989,000)Acquisition of investments in unconsolidated real estate






(2,657,000)



(2,103,000)Capital expenditures


(1,554,000)



(236,000)



(4,818,000)Proceeds from sale of real estate operating properties


39,570,000



39,818,000



32,782,000Proceeds from sale of unconsolidated real estate properties










9,648,000Distributions received from investment in unconsolidated real
    estate


137,000







Purchase of marketable securities


(6,698,000)



(2,441,000)



(9,819,000)Proceeds from sale of marketable securities


5,010,000



4,436,000



8,302,000Proceeds from collection of principal payments of note receivable


2,420,000







Restricted cash


(2,942,000)



3,007,000



468,000Net cash (used in) provided by investing activities


(17,530,000)



15,867,000



(64,529,000)CASH FLOWS FROM FINANCING ACTIVITIES:Borrowings on mortgages payable


57,749,000



10,771,000



96,192,000Principal repayments on mortgages payable and other debt


(22,254,000)



(20,077,000)



(24,940,000)Repurchase of member units, net of costs






(134,000)



Repayment on other debts


(999,000)







Principal repayments on related parties borrowings


(5,975,000)



(2,245,000)



Borrowings from related parties, net


5,975,000







Payment of deferred financing costs


(1,241,000)



(330,000)



(1,202,000)Issuance of units, net of offering costs










Minority interests distributions


(53,000)



(3,182,000)



(1,402,000)Distributions


(4,090,000)



(5,997,000)



(3,493,000)Net cash provided by (used in) financing activities


29,112,000



(21,194,000)



65,155,000NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS


7,564,000



(10,116,000)



864,000CASH AND CASH EQUIVALENTS  beginning of year


644,000



10,760,000



9,896,000CASH AND CASH EQUIVALENTS  end of year

$
8,208,000


$
644,000


$
10,760,000SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the year for:Interest

$
5,451,000


$
5,730,000


$
1,467,000Income taxes

$
19,000


$
46,000


$
24,000NONCASH INVESTING AND FINANCING ACTIVITIES:Accrual for tenant improvements and capital expenditures

$
694,000


$
208,000


$
1,625,000Interest receivable converted to notes receivable

$



$
120,000


$
The following represents the change in certain assets and
    liabilities in connection with our acquisitions and dispositions
    of operating properties:Increase in investment operating propertiesAccount Receivable

$



$
115,000


$
Security deposits and prepaid rent

$
274,000


$



$
1,405,000Restricted cash

$



$



$
4,192,000Other assets

$
1,060,000


$
18,000


$
468,000Accrued expenses

$
11,000


$
368,000


$
1,372,000Minority interests contributions

$



$
163,000


$
85,000Notes receivable

$



$



$
2,300,000    62




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC



NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS

For the
    Years Ended December 31, 2007, 2006 and 2005



The use of the words we, us, or
    our refers to NNN 2003 Value Fund, LLC and our
    subsidiaries, except where the context otherwise requires. 1.
    Organization
    and Description of Business          2.
    Summary
    of Significant Accounting Policies  Principles
    of Consolidation
  Consolidation of
    Variable Interest Entities,
 63




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Use of
    Estimates
    Cash
    and Cash Equivalents
    Restricted
    Cash
    Allowance
    for Doubtful Accounts
    Investment
    in Marketable Securities
    Impairment
   64




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    
    a significant negative industry or economic trend;
    a significant underperformance relative to historical or
    projected future operating results; and
    a significant change in the manner in which the asset is used.      Purchase
    Price Allocation
  Business Combinations, lease-up
       65




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Operating
    Properties
      Properties
    Held for Sale
  Accounting for
    Impairment or Disposal of Long-Lived Assets,
  
    management, having the authority to approve the action, commits
    to a plan to sell the asset;
    the asset is available for immediate sale in its present
    condition subject only to terms that are usual and customary for
    sales of such assets;
    an active program to locate a buyer and other actions required
    to complete the plan to sell the asset have been initiated;
    the sale of the asset is probable and the transfer of the asset
    is expected to qualify for recognition as a completed sale
    within one year;
    the asset is being actively marketed for sale at a price that is
    reasonable in relation to its current fair value; and
    given the actions required to complete the plan, it is unlikely
    that significant changes to the plan will be made or that the
    plan will be withdrawn.   66




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Other
    Assets
    Derivative
    Financial Instruments
      Notional Amount


Index


Rate


Fair Value


Instrument


Maturity$
10,550,000



LIBOR



5.40
%

$
(33,000
)


SWAP



05/12/2008     Derivative
    Instruments and Hedging Activities,
  Revenue
    Recognition
  Accounting for
    Leases
 67




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Concentration
    of Credit Risk
        Percentage of



Square

Lease2007 Annual

2007 Annual



Footage

ExpirationTenant

Base Rent*

Base Rent

Property

(Approximately)

DateMcKennson Information Solutions, Inc.

$
1,101,000



11.5%


Four Resources Square


59,000


06/30/12GSA-FBI

$
1,067,000



11.2%


901 Civic Center


49,000


03/14/08   *
    
    Annualized rental revenue is based on contractual base rent from
    leases in effect as of December 31, 2007.    Percentage of



Square

Lease2006 Annual

2006 Annual



Footage

ExpirationTenant

Base Rent*

Base Rent

Property

(Approximately)

DateGSA-FBI

$
1,035,000



17.6%


901 Civic


49,000


05/03/08Administaff Services, LP

$
1,012,000



17.2%


Interwood


52,000


09/30/14PRC

$
956,000



16.3%


Tiffany Square


96,000


05/31/13Westwood College of Technology

$
763,000



13.0%


Executive Center I


44,000


01/31/13   *
    
    Annualized rental revenue is based on contractual base rent from
    leases in effect as of December 31, 2006. 68




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     Percentage of



Square

Lease2005 Annual

2005 Annual



Footage

ExpirationTenant

Base Rent*

Base Rent

Property

(Approximately)

DateHeritage Capital Corporation

$1,575,000

14.5%

3500 Maple

75,000

06/30/15   *
    
    Annualized rental revenue is based on contractual base rent from
    leases in effect as of December 31, 2005.  Fair
    Value of Financial Instruments
  Disclosures About Fair Value of
    Financial Instruments
    Income
    Taxes
    Comprehensive
    Income
  Reporting Comprehensive Income.
  Per
    Unit Data
  Earnings Per Unit.
 69




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Years Ended December 31,2007


2006


2005(Loss) income from continuing operations

$
(7,408,000)


$
(3,130,000)


$
858,000Total income from discontinued operations


8,237,000



3,511,000



6,055,000Net income

$
829,000


$
381,000


$
6,913,000Net (loss) income per unit  basic and diluted:Continuing operations  basic and diluted

$
(743.03)


$
(313.75)


$
85.80Discontinued operations  basic and diluted


826.18



351.94



605.50Total net income per unit  basic and diluted

$
83.15


$
38.19


$
691.30Weighted-average number of units outstanding  basic
    and diluted


9,970



9,976



10,000   Segment
    Disclosure
  Disclosures about
    Segments of an Enterprise and Related Information
  Minority
    Interests
    Recently
    Issued Accounting Pronouncements
  Fair Value
    Measurement, SFAS No. 157-1, Application of FASB Statement No. 157 to FASB Statement
    No. 13 and Other Accounting Pronouncements That Address
    Fair Value Measurements for Purposes of Lease Classification or
    Measurement under Statement 13, FAS 157-1. FAS 157-1 FAS 157-1 Accounting for Leases FAS 157-1 FAS 157-1
 70




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities
  Business Combinations
  Noncontrolling Interests in Consolidated Financial
    Statements  An Amendment of ARB No. 51,
  Disclosures about Derivative Instruments and Hedging
    Activities
 71




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  3.
    Investments
    in Real Estate  Operating
    Properties
    December 31,2007


2006Buildings and tenant improvements

$
64,710,000


$
23,927,000Land


12,627,000



5,839,00077,337,000



29,766,000Less: accumulated depreciation


(2,740,000)



(911,000)$
74,597,000


$
28,855,000     Acquisitions
    and Dispositions
    Acquisitions
    in 2007
  Consolidated
    Properties
  Four
    Resource Square  Charlotte, North Carolina
    The
    Sevens Building  St. Louis, Missouri
    Potential
    Property Acquisitions
    
    receipt of a satisfactory environmental survey and property
    appraisal for each property; 72




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   
    no material adverse change occurring in the properties, the
    tenants or in the local economic conditions; and
    receipt of sufficient financing.    Dispositions
    in 2007
  Consolidated
    Properties
  Interwood 
    Houston, Texas
    Daniels
    Road land parcel  Heber City, Utah
    Woodside 
    Beaverton, Oregon
    Acquisitions
    in 2006
  Consolidated
    Properties
  901 Civic
    Center Drive Building  Santa Ana,
    California
   73




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Tiffany
    Square  Colorado Springs, Colorado
    Unconsolidated
    Properties
  Chase
    Tower  Austin, Texas
    Dispositions
    in 2006
  Consolidated
    Properties
  Oakey
    Building  Las Vegas, Nevada
    3500
    Maple  Dallas, Texas
    Acquisitions
    in 2005
  Consolidated
    Properties
  Interwood 
    Houston, Texas
   74




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Woodside
    Corporate Park  Beaverton, Oregon
    Daniels
    Road land parcel  Heber City, Utah
    3500
    Maple  Dallas, Texas
    Dispositions
    in 2005
  Consolidated
    Properties
  Southwood
    Tower  Houston, Texas
      Financial
    Plaza  Omaha, Nebraska
   75




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Satellite
    Place  Atlanta, Georgia
    Unconsolidated
    Properties
  Emerald
    Plaza Building  San Diego, California
    801 K Street 
    Sacramento, California
    Investments
    in Unconsolidated Real Estate
    Ownership

December 31Description

Location

Percentage

2007


2006Enterprise Technology Center

Scotts Valley, CA

8.5%

$
2,232,000


$
2,528,000Chase Tower

Austin, TX

14.8%


1,328,000



2,108,000Executive Center II & III

Dallas, TX

41.1%


2,180,000



2,662,000Total





$
5,740,000


$
7,298,000  76




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    December 31,2007


2006Balance Sheet Data:Assets (primarily real estate)

$
165,434,000


$
170,089,000Mortgage loans and other debt payable

$
114,244,000


$
107,621,000Other liabilities


17,040,000



19,434,000Equity


34,150,000



43,034,000Total liabilities and equity

$
165,434,000


$
170,089,000Our share of equity

$
5,740,000


$
7,298,000   Years Ended December 31,2007


2006


2005Revenues

$
24,385,000


$
18,512,000


$
27,401,000Rental and other expenses


32,198,000



22,821,000



29,168,000Net loss

$
(7,813,000)


$
(4,309,000)


$
(1,767,000)Our equity in losses

$
(1,421,000)


$
(1,173,000)


$
(557,000)Gain on sale of unconsolidated real estate

$



$
34,000


$
3,067,000Equity in (losses) earnings and gain on sale of unconsolidated
    real estate

$
(1,421,000)


$
(1,139,000)


$
2,510,000   4.
    Marketable
    Equity Securities    Historical


Gross Unrealized


EstimatedCost


Gains


Losses


Fair ValueDecember 31, 2007Equity securities

$
1,700,000


$



$
(646,000)


$
1,054,000    77




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  5.
    Identified
    Intangible Assets    December 31,2007


2006In place leases, above market leases and tenant relationships,
    net of accumulated amortization of $2,450,000 and $883,000 as of
    December 31, 2007 and 2006, respectively (with a
    weighted-average life of 45 months, 58 months and
    96 months for in-place leases, above market leases and
    tenant relationships, respectively, as of December 31, 2007
    and a weighted-average life of 62 months, 73 months
    and 121 months for in-place leases, above market leases and
    tenant relationships, respectively, as of December 31, 2006)

$
8,848,000


$
4,325,000       Year

Amount2008

$
2,081,0002009


1,577,0002010


1,298,0002011


1,121,0002012


995,000Thereafter


1,776,000   6.
    Other
    Assets    December 31,2007


2006Deferred rent receivable

$
1,274,000


$
226,000Deferred financing costs, net of accumulated amortization of
    $542,000 and $127,000 as of December 31, 2007 and 2006,
    respectively


980,000



153,000Lease commissions, net of accumulated amortization of $186,000
    and $27,000 as of December 31, 2007 and 2006, respectively


1,362,000



805,000Lease inducements, net of accumulated amortization of $321,000
    and $0 as of December 31, 2007 and 2006, respectively


1,605,000



Prepaid expenses, deposits and other






6,000Total other assets

$
5,221,000


$
1,190,000   7.
    Notes
    Receivable   78




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  8.
    Mortgage
    Loans Payable and Other Debt      Total Mortgage Loans Payable


Weighted-Averageas of


Interest Rate as ofDecember 31,


December 31,2007


2006


2007


2006Mortgage loans payable

$
71,682,000


$
37,186,000



7.19
%


8.72
%Fixed rate and variable rate:Fixed rate

$
26,000,000


$
5,000,000



6.73
%


10.00
%Variable rate

$
45,682,000


$
32,186,000



7.45
%


8.52
%     Form 10-Q,
 79




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Year

Amount2008

$
15,926,0002009


13,225,0002010


42,531,000Total

$
71,682,000   Other
    Debt
    9.
    Derivative
    Financial Instruments      Notional Amount


Index


Rate


Fair Value


Instrument

Maturity$
10,550,000



LIBOR



5.40
%

$
(33,000
)

SWAP


05/12/2008     10.
    Minority
    Interests  tenant-in-common,
  Date


MinorityEntity

Acquired


InterestsNNN Enterprise Way, LLC


05/07/04



26.7
%901 Civic Center


04/24/06



3.1
%  80




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Date


MinorityEntity

Acquired


InterestsNNN 801K Street, LLC


03/31/04



15.0%NNN Oakey Building 2003, LLC


04/02/04



24.5%NNN Enterprise Way, LLC


05/07/04



26.7%901 Civic Center


04/24/06



3.1%   11.
    Unit
    Holders Equity          per-unit
  12.
    Future
    Minimum Rent  Rental
    Income
   81




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Year Ending

Amount2008

$
8,428,0002009


7,533,0002010


6,496,0002011


5,570,0002012


4,024,000Thereafter


3,054,000Total

$
35,105,000     13.
    Related
    Party Transactions  The
    Management Agreement
      Property
    Management Fees
    Real
    Estate Acquisition Fees
   82




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Real
    Estate Disposition Fees
    Lease
    Commissions
    Accounting
    Fees
    Construction
    Fees
    Loan
    Fees
    Acquisition
    Fees
    Related
    Party Accounts Receivable/Payable
    Related
    Party Financing
  365-day 365-day
 83




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  365-day
    Unconsolidated
    Debt Due to Related Parties
      Amount of Loan


NNN 2003as of


Value Fund,Ownership

December 31,


LLCs PortionProperty/Issue Date

Percentage

2007 and 2006


of DebtExecutive Center II & III:06/08/05

41.1%

$
1,000,000


$
411,00009/12/05

41.1%


200,000



82,00010/18/05

41.1%


240,000



99,00011/14/05

41.1%


5,000



2,000Total



$
1,445,000


$
594,000   14.
    Commitments
    and Contingencies  SEC
    Investigation
  In the matter of Triple Net Properties, LLC.
   84




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  and/or
  Prior
    Performance Tables
    Litigation
    Environmental
    Matters
   85




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Unconsolidated
    Debt
    As of December 31,2007


2006NNN 2003





NNN 2003Mortgage Loans


Value Fund,


Mortgage Loans


Value Fund,Ownership


Payable and Other


LLCs portion


Payable and Other


LLCs portionProperty

Percentage


Debt Balance


of Debt


Debt Balance


of DebtEnterprise Technology
    Center


8.5%


$
34,263,000


$
2,912,000


$
34,943,000


$
2,970,000Chase Tower


14.8%



63,633,000



9,418,000



56,764,000



8,401,000Executive Center II & III


41.1%



16,348,000



6,719,000



15,914,000



6,541,000Total





$
114,244,000


$
19,049,000


$
107,621,000


$
17,912,000     15.
    Discontinued
    Operations  Properties Held for Sale    Property

Date Purchased

Date Designated for Sale

Date SoldWoodside

September 30, 2005

October 19, 2007

December 13, 2007Daniels Road

October 14, 2005

December 12, 2006

March 30, 2007Interwood

January 26, 2005

December 22, 2006

March 14, 20073500 Maple Building

December 27, 2005

December 27, 2005

14.0% sold on February 10, 2006
    21.5% sold on June 13, 2006
    53.7% sold on October 16, 2006 9.8% sold on October 31, 2006Oakey Building

April 2, 2004

June 8, 2005

January 24, 2006Southwood Tower

October 27, 2004

June 1, 2005

December 19, 2005Financial Plaza

October 29, 2004

January 15, 2005

April 13, 2005Satellite Place

November 29, 2004

December 17, 2004

February 24, 2005  86




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Years Ended December 31,2007

2006

2005Rental income

$
1,981,000


$
10,756,000


$
5,244,000Rental expense


(1,085,000
)


(5,891,000
)


(2,309,000
)Depreciation and amortization


(730,000
)


(1,927,000
)


(1,324,000
)Income before other expense


166,000



2,938,000



1,611,000Interest expense (including amortization of deferred
    financing costs)


(1,631,000
)


(5,042,000
)


(1,194,000
)Minority interests






(1,441,000
)


(164,000
)(Loss) income from discontinued operations 
    properties held for sale, net


(1,465,000
)


(3,545,000
)


253,000Gain on sale of real estate including minority interest on sale
    of real estate


9,702,000



7,056,000



5,802,000Total income from discontinued operations

$
8,237,000


$
3,511,000


$
6,055,000     December 31,2007


2006Operating properties, net of accumulated amortization of $0 and
    $1,096,000, as of December 31, 2007 and 2006, respectively

$



$
26,899,000Identified intangible assets, net of accumulated amortization of
    $0 and $1,046,000 as of December 31, 2007 and 2006,
    respectively






2,306,000Lease commissions, net of accumulated amortization of $0 and
    $25,000 as of December 31, 2007 and 2006, respectively






258,000Loan fees, net of accumulated amortization of $0 and $278,000 as
    of December 31, 2007 and 2006, respectively






194,000Other assets






286,000Total other assets






3,044,000Total Assets

$



$
29,943,000Mortgage loans payable

$



$
21,636,000Security deposits, prepaid rent, and other liabilities






366,000Total Liabilities

$



$
22,002,000Minority interests

$



$
  87




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  16.  Selected
    Quarterly Financial Data (unaudited)
    Quarters EndedDecember 31,

September 30,

June 30,

March 31,2007

2007

2007

2007Revenue

$
2,547,000


$
1,561,000


$
1,600,000


$
1,316,000Expense


2,989,000



2,359,000



2,066,000



1,952,000Loss before other expense and discontinued operations


(442,000
)


(798,000
)


(466,000
)


(636,000
)Other expense


(1,340,000
)


(1,331,000
)


(576,000
)


(549,000
)Equity in losses of unconsolidated real estate


(319,000
)


(532,000
)


(280,000
)


(290,000
)Minority interests


15,000



48,000



8,000



80,000Loss from continuing operations


(2,086,000
)


(2,613,000
)


(1,314,000
)


(1,395,000
)Discontinued operations


6,409,000



(241,000
)


(592,000
)


2,661,000Net income (loss)

$
4,323,000


$
(2,854,000
)

$
(1,906,000
)

$
1,266,000(Losses) earnings per unit  basic and dilutedContinuing operations

$
(209.22
)

$
(262.09
)

$
(131.80
)

$
(139.92
)Discontinued operations


642.83



(24.17
)


(59.38
)


266.90Total earnings (losses) per unit  basic and diluted

$
433.61


$
(286.26
)

$
(191.18
)

$
126.98Weighted-average number of units


9,970



9,970



9,970



9,970   Quarters EndedDecember 31,

September 30,

June 30,

March 31,2006

2006

2006

2006Revenue

$
738,000


$
574,000


$
481,000


$
204,000Expense


1,151,000



1,061,000



725,000



499,000Loss before other (expense) income and discontinued operations


(413,000
)


(487,000
)


(244,000
)


(295,000
)Other expense


(259,000
)


(378,000
)


(104,000
)


170,000Equity in (losses) earnings and gain on sale of unconsolidated
    real estate


(385,000
)


(345,000
)


(774,000
)


365,000Minority interests


5,000



12,000



7,000



(5,000
)(Loss) income from continuing operations


(1,052,000
)


(1,198,000
)


(1,115,000
)


235,000Discontinued operations


291,000



(813,000
)


846,000



3,187,000Net (loss) income

$
(761,000
)

$
(2,011,000
)

$
(269,000
)

$
3,422,000(Losses) earnings per unit  basic and dilutedContinuing operations

$
(105.52
)

$
(120.17
)

$
(111.83
)

$
23.52Discontinued operations


29.19



(81.54
)


84.85



318.92Total (losses) earnings per unit  basic and diluted

$
(76.33
)

$
(201.71
)

$
(26.98
)

$
342.44Weighted-average number of units


9,970



9,970



9,970



9,993  88




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  17.
    Business
    Combinations      Four Resource Square

The Sevens Building

TotalLand

$
1,668,000


$
5,119,000


$
6,787,000Building and improvements


19,357,000



20,487,000



39,844,000Above market leases






30,000



30,000In place leases


1,034,000



1,700,000



2,734,000Tenant relationships


1,592,000



1,941,000



3,533,000Net assets acquired

$
23,651,000


$
29,277,000


$
52,928,000Below market leases


(145,000
)


(85,000
)


(230,000
)Net liabilities assumed

$
(145,000
)

$
(85,000
)

$
(230,000
)        89




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    901 Civic Center Drive

Tiffany Square

TotalLand

$
2,094,000


$
1,555,000

$
3,649,000Building and improvements


11,276,000



8,026,000


19,302,000In place leases


725,000



1,185,000


1,910,000Tenant relationships


773,000



826,000


1,599,000Net assets acquired

$
14,868,000


$
11,592,000

$
26,460,000Below market leases


(2,000
)





(2,000
)Net liabilities assumed

$
(2,000
)

$


$
(2,000
)       18.
    Subsequent
    Events  Rental
    Income
      Mortgage
    Loans Payable and Other Debt
  Executive
    Center
   90




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  901 Civic
    Center
  Form 10-Q,
 91




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
 SCHEDULE II 
    VALUATION AND QUALIFYING ACCOUNTS  DeductionsBalance at


Charged to


(Write-off of


Balance atBeginning of


Costs and


uncollectible


End ofPeriod


Expenses


account)


PeriodAllowance for Doubtful AccountsYear Ended December 31, 2007  Allowance for
    doubtful accounts

$



$
228,000


$



$
228,000Year Ended December 31, 2006  Allowance for
    doubtful accounts

$
2,000


$



$
(2,000
)

$
Year Ended December 31, 2005  Allowance for
    doubtful accounts

$
59,000


$
14,000


$
(71,000
)

$
2,000  92




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##### Table of Contents





NNN 2003
    VALUE FUND, LLC
 SCHEDULE III 
    REAL ESTATE AND ACCUMULATED DEPRECIATION  Maximum Lifeon WhichDepreciation inInitial Costs to Company


Gross Amount at Which Carried at Close of Period



Latest IncomeBuildings and





Buildings and





Accumulated


Date

Date

Statement isEncumbrance


Land


Improvements


Land


Improvements


Total(a)(b)


Depreciation(c)


Constructed

Acquired

ComputedExecutive Center I (Office), Dallas, TX

$
5,000,000


$
2,190,000


$
4,213,000


$
2,190,000


$
4,616,000


$
6,806,000


$
(857,000
)


1983



29-Dec-03


39 years901 Civic Center (Office),
    Santa Ana, CA


10,926,000



2,094,000



11,284,000



2,094,000



11,742,000



13,836,000



(574,000
)


1985



24-Apr-06


39 yearsTiffany Square (Office), Colorado Springs, CO


13,225,000



1,555,000



8,026,000



1,555,000



8,161,000



9,716,000



(371,000
)


1983



15-Nov-06


39 yearsFour Resource Square (Office), Charlotte, NC


21,531,000



1,668,000



19,357,000



1,668,000



19,682,000



21,350,000



(814,000
)


2000



7-Mar-07


39 yearsThe Sevens Building (Office), St. Louis, MO


21,000,000



5,119,000



20,487,000



5,119,000



20,510,000



25,629,000



(124,000
)


1971



25-Oct-07


39 yearsTotal

$
71,682,000


$
12,626,000


$
63,367,000


$
12,626,000


$
64,711,000


$
77,337,000


$
(2,740,000
)       2007Balance as of December 31, 2006

$
57,760,000Acquisitions


46,631,000Additions


2,034,000Disposals


(29,088,000
)Balance as of December 31, 2007

$
77,337,000
     2007Balance as of December 31, 2006

$
2,006,000Additions


2,296,000Disposals


(1,562,000
)Balance as of December 31, 2007

$
2,740,000
  93




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##### Table of Contents





SIGNATURES    NNN
    2003 Value Fund, LLC(Registrant)By

/s/  Richard
    T. Hutton, Jr.Richard
    T. Hutton, Jr.

Chief Executive Officer
    (principal executive officer)Date

March 31, 2008By

/s/  Francene
    LaPointFrancene
    LaPoint

Chief Financial Officer of Grubb & Ellis Realty Investors,
    LLC, the manager of NNN 2003 Value Fund, LLC
    (principal financial officer)Date

March 31, 2008     By

/s/  Richard
    T. Hutton, Jr.Richard
    T. Hutton, Jr.

Chief Executive Officer
    (principal executive officer)Date

March 31, 2008By

/s/  Francene
    LaPointFrancene
    LaPoint

Chief Financial Officer of Grubb & Ellis Realty Investors,
    LLC, the manager of NNN 2003 Value Fund, LLC
    (principal financial officer)Date

March 31, 2008  94




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##### Table of Contents



EXHIBIT INDEX
  Regulation S-K,
  Form 10-K Regulation S-K).
  ExhibitNumber

Exhibit10.1

Operating Agreement of NNN 2003 Value Fund, LLC, by and between
    Triple Net Properties, LLC, as the Manager, and Anthony W.
    Thompson, as the Initial Member (included as Exhibit 10.1
    to our Form 10 filed on May 2, 2005 and incorporated
    herein by reference).10.2

Management Agreement between NNN 2003 Value Fund, LLC and Triple
    Net Properties Realty, Inc. (included as Exhibit 10.2 to
    our Form 10 filed on May 2, 2005 and incorporated
    herein by reference).10.3

First Amendment to Operating Agreement of NNN 2003 Value Fund,
    LLC, by and between Triple Net Properties, LLC, as the Manager,
    dated January 20, 2005, (included as Exhibit 10.3 to
    our
    Form 10-K
    filed on April 2, 2007 and incorporated herein by
    reference).10.4

First Amendment to Management Agreement between NNN 2003 Value
    Fund, LLC and Triple Net Properties Realty, Inc., dated
    May 1, 2005, (included as Exhibit 10.4 to our
    Form 10-K
    filed on April 2, 2007 and incorporated herein by
    reference).10.5

Second Amendment to Operating Agreement of NNN 2003 Value Fund,
    LLC, by and between Triple Net Properties, LLC, as the Manager,
    dated February 2, 2007, (included as Exhibit 10.7 to
    our
    Form 10-K
    filed on April 2, 2007 and incorporated herein by
    reference).10.6

Contract of Sale by and between G&I III Resource Square,
    LLC, and Triple Net Properties, LLC, dated January 9, 2007,
    (included as Exhibit 10.1 to our
    Form 8-K
    filed on February 22, 2007 and incorporated herein by
    reference).10.7

Assignment of Contract by and between Triple Net Properties,
    LLC, and NNN VF Four Resource Square, LLC, dated
    February 15, 2007, (included as Exhibit 10.2 to our
    Form 8-K
    filed on February 22, 2007 and incorporated herein by
    reference).10.8

First Amendment to Contract of Sale by and between G&I III
    Resource Square, LLC, and Triple Net Properties, LLC, dated
    February 20, 2007, (included as Exhibit 10.3 to our
    Form 8-K
    filed on February 22, 2007 and incorporated herein by
    reference).10.9

Deed of Trust by and between NNN VF Tiffany Square, LLC and RAIT
    Partnership, L.P., dated February 15, 2007, (included as
    Exhibit 10.1 to our
    Form 8-K/A
    filed on February 28, 2007 and incorporated herein by
    reference).10.10

Loan and Security Agreement by and between NNN VF Tiffany
    Square, LLC and RAIT Partnership, L.P., dated February 15,
    2007, (included as Exhibit 10.2 to our
    Form 8-K/A
    filed on February 28, 2007 and incorporated herein by
    reference).10.11

Promissory Note by and between NNN VF Tiffany Square, LLC and
    RAIT Partnership, L.P., dated February 15, 2007, (included
    as Exhibit 10.3 to our
    Form 8-K/A
    filed on February 28, 2007 and incorporated herein by
    reference).10.12

Pledge and Security Agreement by and between NNN 2003 Value
    Fund, LLC and RAIT Partnership, L.P., dated February 15,
    2007, (included as Exhibit 10.4 to our
    Form 8-K/A
    filed on February 28, 2007 and incorporated herein by
    reference).10.13

Guaranty of Non-Recourse Carveouts by and between NNN 2003 Value
    Fund, LLC and RAIT Partnership, L.P., dated February 15,
    2007, (included as Exhibit 10.5 to our
    Form 8-K/A
    filed on February 28, 2007 and incorporated herein by
    reference).10.14

Environmental Indemnity Agreement by and between NNN VF Tiffany
    Square, LLC, NNN 2003 Value Fund, LLC and RAIT Partnership,
    L.P., dated February 15, 2007, (included as
    Exhibit 10.6 to our
    Form 8-K/A
    filed on February 28, 2007 and incorporated herein by
    reference).10.15

Assignment of Rents and Leases by and between NNN VF Tiffany
    Square, LLC and RAIT Partnership, L.P., dated February 15,
    2007, (included as Exhibit 10.7 to our
    Form 8-K/A
    filed on February 28, 2007 and incorporated herein by
    reference). 95




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##### Table of Contents



10.16

Deed of Trust, Security Agreement and Fixture Filing by and
    between NNN VF Four Resource Square, LLC and RAIT Partnership,
    L.P., dated March 7, 2007, (included as Exhibit 10.4
    to our
    Form 8-K
    filed on March 13, 2007 and incorporated herein by
    reference).10.17

Loan and Security Agreement by and between NNN VF Four Resource
    Square, LLC and RAIT Partnership, L.P., dated March 7,
    2007, (included as Exhibit 10.5 to our
    Form 8-K
    filed on March 13, 2007 and incorporated herein by
    reference).10.18

Promissory Note by and between NNN VF Four Resource Square, LLC
    and RAIT Partnership, L.P., dated March 7, 2007, (included
    as Exhibit 10.6 to our
    Form 8-K
    filed on March 13, 2007 and incorporated herein by
    reference).10.19

Pledge and Security Agreement by and between NNN 2003 Value
    Fund, LLC and RAIT Partnership, L.P., dated March 7, 2007,
    (included as Exhibit 10.7 to our
    Form 8-K
    filed on March 13, 2007 and incorporated herein by
    reference).10.20

Guaranty of Non-Recourse Carveouts by and between NNN 2003 Value
    Fund, LLC and RAIT Partnership, L.P., dated March 7, 2007,
    (included as Exhibit 10.8 to our
    Form 8-K
    filed on March 13, 2007 and incorporated herein by
    reference).10.21

Environmental Indemnity Agreement by and between NNN VF Four
    Resource Square, LLC, NNN 2003 Value Fund, LLC and RAIT
    Partnership, L.P., dated March 7, 2007, (included as
    Exhibit 10.9 to our
    Form 8-K
    filed on March 13, 2007 and incorporated herein by
    reference).10.22

Assignment of Licenses, Permits, Approvals and Miscellaneous
    Contracts by and between NNN VF Four Resource Square, LLC and
    RAIT Partnership, L.P., dated March 7, 2007, (included as
    Exhibit 10.10 to our
    Form 8-K
    filed on March 13, 2007 and incorporated herein by
    reference).10.23

First Modification of Loan Documents by and between WCRT Seller
    LLC and NNN VF Woodside Corporate Park, LLC, executed on
    September 7, 2007 (included as Exhibit 10.1 to our
    Form 8-K
    filed September 13, 2007 and incorporated herein by
    reference).10.24

Agreement for Purchase and Sale of Real Property and Escrow
    Instructions by and between NNN VF Woodside Corporate Park, LLC
    and NNN Woodside, LLC, dated October 19, 2007 (included as
    Exhibit 10.1 to our
    Form 8-K
    filed October 24, 2007 and incorporated herein by
    reference).10.25

Unsecured Promissory Note by NNN 2003 Value Fund, LLC in favor
    of NNN Realty Advisors, Inc., dated October 24, 2007
    (included as Exhibit 10.1 to our
    Form 8-K
    filed October 30, 2007 and incorporated herein by
    reference).10.26

Purchase and Sale Agreement by and between Sevens St. Louis
    L.L.C. and Triple Net Properties, LLC, dated September 19,
    2007 (included as Exhibit 10.1 to our
    Form 8-K
    filed October 31, 2007 and incorporated herein by
    reference).10.27

First Amendment to Purchase and Sale Agreement by and between
    Sevens St. Louis, LLC and Triple Net Properties, LLC, dated
    October 24, 2007 (included as Exhibit 10.2 to our
    Form 8-K
    filed October 31, 2007 and incorporated herein by
    reference).10.28

Assignment and Assumption of Purchase and Sale Agreement by and
    between Triple Net Properties, LLC and NNN VF 7777 Bonhomme
    Avenue, LLC, dated October 25, 2007 (included as
    Exhibit 10.3 to our
    Form 8-K
    filed October 31, 2007 and incorporated herein by
    reference).10.29

Loan Agreement between General Electric Capital Corporation and
    NNN VF 7777 Bonhomme Avenue, LLC, dated October 25, 2007
    (included as Exhibit 10.4 to our
    Form 8-K
    filed October 31, 2007 and incorporated herein by
    reference).10.30

Promissory Note by NNN VF 7777 Bonhomme Avenue, LLC in favor of
    General Electric Capital Corporation, dated October 25,
    2007 (included as Exhibit 10.5 to our
    Form 8-K
    filed October 31, 2007 and incorporated herein by
    reference).10.31

Deed of Trust, Security Agreement and Fixture Filing for the
    benefit of General Electric Capital Corporation, dated
    October 25, 2007 (included as Exhibit 10.6 to our
    Form 8-K
    filed October 31, 2007 and incorporated herein by
    reference).10.32

Hazardous Materials Indemnity Agreement by NNN VF 7777 Bonhomme
    Avenue, LLC and NNN 2003 Value Fund, LLC for the benefit of
    General Electric Capital Corporation, dated October 25,
    2007 (included as Exhibit 10.7 to our
    Form 8-K
    filed October 31, 2007 and incorporated herein by
    reference). 96




---



##### Table of Contents



10.33

Joinder Agreement by NNN 2003 Value Fund, LLC in favor of
    General Electric Capital Corporation, dated October 25,
    2007 (included as Exhibit 10.8 to our
    Form 8-K
    filed October 31, 2007 and incorporated herein by
    reference).10.34

Joinder Agreement by NNN Realty Advisors, Inc. in favor of
    General Electric Capital Corporation, dated October 25,
    2007 (included as Exhibit 10.9 to our
    Form 8-K
    filed October 31, 2007 and incorporated herein by
    reference).10.35

First Amendment to Agreement for Purchase and Sale of Real
    Property and Escrow Instructions by and between NNN Woodside,
    LLC and NNN VF Woodside Corporate Park, LLC, dated
    December 3, 2007 (included as Exhibit 10.1 to our
    Form 8-K
    filed December 7, 2007 and incorporated herein by
    reference).21.1*

Subsidiaries of NNN 2003 Value Fund, LLC.31.1*

Certification of Chief Executive Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.31.2*

Certification of Chief Financial Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.32.1*

Certification of Chief Executive Officer, pursuant to
    18 U.S.C. Section 1350, as created by Section 906
    of the Sarbanes-Oxley Act of 2002.32.2*

Certification of Chief Financial Officer, pursuant to
    18 U.S.C. Section 1350, as created by Section 906
    of the Sarbanes-Oxley Act of 2002.     *
    
    Filed herewith. 97