##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2005                                                 
|          
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to           .                                 

Commission file number: 0-51098





NNN 2002 Value Fund, LLC


(Exact name of registrant as specified in its charter)


|                                |  |                    
|------------------------------- |  | -------------------
|Virginia                        |  | 75-3060438         
|(State or other jurisdiction of |  | (I.R.S. Employer   
|incorporation or organization)  |  | Identification No.)

1551 N. Tustin Avenue, Suite 200


Santa Ana, California 92705


(Address of principal executive offices)


(877) 888-7348


(Registrants telephone number, including area code)





Securities registered pursuant to Section 12(b) of the
Act:


|                    |  |                                          
|------------------- |  | -----------------------------------------
|Title of Each Class |  | Name of Each Exchange on Which Registered
|                    |  |                                          
|None                |  | None                                     

Securities registered pursuant to Section 12(g) of the
Act:


Title of Class:








o þ


o þ


þ o


S-K 10-K 10-K. þ


12b-2


o o þ


12b-2 o þ














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##### 










NNN 2002 VALUE FUND, LLC


TABLE OF CONTENTS


|             |  |                                                                                                                          |    |      |    |  |  | 
|------------ |  | ------------------------------------------------------------------------------------------------------------------------ | -- | ---- | -- |  |  | 
|             |  |                                                                                                                          |    | Page |   
|             |  |                                                                                                                          |    |      |   
|PART I      
|Item 1.      |  | Business                                                                                                                 |    |      | 1  | 
|Item 1A.     |  | Risk Factors                                                                                                             |    |      | 5  | 
|Item 2.      |  | Properties                                                                                                               |    |      | 18 | 
|Item 3.      |  | Legal Proceedings                                                                                                        |    |      | 20 | 
|Item 4.      |  | Submission of Matters to a Vote of Security
    Holders                                                                  |    |      | 21 | 
|            
|PART II     
|Item 5.      |  | Market for Registrants Common Equity,
    Related Security Holder Matters and Issuer Purchases of Equity
    Securities |    |      | 21 | 
|Item 6.      |  | Selected Financial Data                                                                                                  |    |      | 23 | 
|Item 7.      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                                |    |      | 24 | 
|Item 7A.     |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                           |    |      | 39 | 
|Item 8.      |  | Financial Statements and Supplementary
    Data                                                                          |    |      | 40 | 
|Item 9.      |  | Changes in and Disagreements With
    Accountants on Accounting and Financial Disclosure                                 |    |      | 40 | 
|Item 9A.     |  | Controls and Procedures                                                                                                  |    |      | 40 | 
|Item 9B.     |  | Other Information                                                                                                        |    |      | 41 | 
|            
|PART III    
|Item 10.     |  | Directors and Executive Officers of the
    Registrant                                                                   |    |      | 41 | 
|Item 11.     |  | Executive Compensation                                                                                                   |    |      | 44 | 
|Item 12.     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Security Holder Matters                   |    |      | 45 | 
|Item 13.     |  | Certain Relationships and Related
    Transactions                                                                       |    |      | 45 | 
|Item 14.     |  | Principal Accounting Fees and Services                                                                                   |    |      | 48 | 
|            
|PART IV     
|Item 15.     |  | Exhibits and Financial Statement
    Schedules                                                                           |    |      | 50 | 
|SIGNATURES   |  |                                                                                                                          | 81 |     
|Exhibit 31.1
|Exhibit 31.2
|Exhibit 32.1
|Exhibit 32.2



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PART I







|        |         
|------- | --------
|Item 1. | Business

OUR COMPANY








Plan of Liquidation








---



##### Table of Contents







Developments During 2005




| |   |                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our plan of liquidation was approved by our unit holders on
    September 7, 2005, and we adopted the liquidation basis of
    accounting as of August 31, 2005.
|
| |  | In October 2005, we paid a liquidating distribution of
    approximately $16,000,000, or $2,684.56 per unit.                                                    
|
| |  | During 2005, we sold our 100% owned property, Bank of America
    West, and our 50% interest in Netpark for net proceeds to us
    totaling $27,017,000.        
|
| |  | As of December 31, 2005, Congress Center, of which we own
    12.3%, is listed for sale.                                                                        

Developments During 2006




| |   |                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------
| |  | In January 2006, we paid a liquidating distribution of
    approximately $1,500,000, or $251.68 per unit.

CURRENT INVESTMENT OBJECTIVES AND POLICIES


General






| |   |                                                                                            
| | - | -------------------------------------------------------------------------------------------
| |  | preserve our unit holders capital investment;                                             
|
| |  | generate cash through the sale of our remaining property
    interest; and                 
|
| |  | realize capital appreciation upon the ultimate sale of our
    remaining property interest.





Disposition Strategies






| |   |                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------
| |  | the ability to sell our remaining property interest at the
    highest possible price in order to maximize the return to the
    unit holders;
|
| |  | the ability to complete the transaction within the timeframe of
    our plan of liquidation; and                                              

2



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##### Table of Contents





| |   |                                                      
| | - | -----------------------------------------------------
| |  | the ability of our buyers to finance the transaction.

Operating Strategies






| |   |                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | managing costs and seeking to minimize operating expenses by
    centralizing management, leasing, marketing, financing,
    accounting, renovation and data processing activities;
|
| |  | improving rental income and cash flow by aggressively marketing
    rentable space and raising rents when feasible;                                                                
|
| |  | emphasizing regular maintenance and periodic renovation to meet
    the needs of tenants and to maximize long-term returns; and                                                    
|
| |  | refinancing our property when favorable financing terms are
    available to increase the cash flow.                                                                               

FINANCING POLICIES




TAX STATUS




DISTRIBUTION POLICY




COMPETITION




3



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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.


Other Federal, State and Local Regulations.


4



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##### Table of Contents



SIGNIFICANT TENANTS




|                            |  |              |           |               |             |  |      |                 |       |  |            |  |  |  |          | 
|--------------------------- |  | ------------ | --------- | ------------- | ----------- |  | ---- | --------------- | ----- |  | ---------- |  |  |  | -------- | 
|                            |  |              |           | Percentage of |             |  |      |                 | Lease | 
|                            |  | 2005 Annual  |           |               | 2005 Annual |  |      | Square Footage  |       |  | Expiration | 
|Tenant                      |  | Base Rent(1) |           |               | Base Rent   |  |      | (Approximately) |       |  | Date       | 
|                            |  |              |           |               |             |  |      |                 |       |  |            | 
|Homeland Security           |  | $            | 3,279,000 |               |             |  | 25.7 | %               |       |  | 76,000     |  |  |  | 04/25/12 | 
|North American Co. Life and |  |              |           |               |             |  |      |                 |       |  |            |  |  |  |          | 
|Health Ins.                 |  | $            | 2,270,000 |               |             |  | 17.8 | %               |       |  | 101,000    |  |  |  | 02/28/12 | 
|Akzo Nobel, Inc.            |  | $            | 1,938,000 |               |             |  | 15.2 | %               |       |  | 90,000     |  |  |  | 12/31/13 | 
|US Treasury                 |  | $            | 1,550,000 |               |             |  | 12.2 | %               |       |  | 37,000     |  |  |  | 02/28/13 | 
|GE Insurance Solutions      |  | $            | 1,447,000 |               |             |  | 11.4 | %               |       |  | 67,000     |  |  |  | 12/31/12 | 






|    |                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------
|(1) | Annualized rental income is based on contractual base rent from
    leases in effect as of December 31, 2005.



EMPLOYEES




FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS







Item 1A.     Risk
Factors


Risks Associated with Our Liquidation




| |                                                          
| | ---------------------------------------------------------
| | We may delay or reduce our liquidating
    distributions.





| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | Our plan of liquidation allows for the sale of our
    property interest to affiliates.



5



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| |                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If any of the parties to a future sale agreement default
    thereunder, or if a sale does not otherwise close, our
    liquidating distributions may be delayed or reduced.





| |                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to find buyers for our remaining property
    interest at our expected sales price, our liquidating
    distributions may be delayed or reduced.

co-ownership




| |                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------
| | Decreases in property values may reduce the amount that we
    receive upon the sale of our remaining property interest.





| |   |                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------
| |  | adverse changes in economic conditions;                                                                                      
|
| |  | the financial performance of our tenants, and the ability of our
    tenants to satisfy their obligations under their leases;
|
| |  | terminations and renewals of leases by our tenants;                                                                          
|
| |  | competition; and                                                                                                             
|
| |  | changes in real estate tax rates and other operating expenses.                                                               



6



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| |                                                                                                                                                                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to maintain the occupancy rates of
    currently leased space and lease currently available space, if
    tenants default under their leases or other obligations to us
    during the liquidation process or if our cash flow during the
    liquidation is otherwise less than we expect, our liquidating
    distributions may be delayed or reduced.





| |                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------
| | If our liquidation costs or unpaid liabilities are greater
    than we expect, our liquidating distributions may be delayed or
    reduced.





| |                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are not able to sell our remaining property interest
    in a timely manner, we may experience severe liquidity problems,
    may not be able to meet the demands of our creditors and
    ultimately become subject to bankruptcy proceedings.





| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | We could be treated as a publicly-traded partnership for
    U.S. federal income tax purposes.



7



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##### Table of Contents





| |                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | We expect to incur significant costs in connection with
    Exchange Act compliance and we may become subject to liability
    for any failure to comply.

10-Q, 10-K 8-K,




| |                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We expect to incur increasingly significant costs in
    connection with Sarbanes-Oxley compliance and we may become
    subject to liability for any failure to comply.







| |                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to retain our Manager and sufficient
    executives and staff members of our Manager to complete our plan
    of liquidation in a reasonably expeditious manner, our
    liquidating distributions might be delayed or reduced.





8



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| |                                                                                                                                                                                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | You may not receive any profits resulting from the sale of
    our remaining property, or receive such profits in a timely
    manner, because we may provide financing to the purchaser of
    such property.





| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Our entity value may be adversely affected by adoption of
    our plan of liquidation.

winding-up




| |                                                                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | There can be no assurance that our plan of liquidation
    will result in greater returns to you on your investment within
    a reasonable period of time, than you would receive through
    other alternatives reasonably available to us.





| |                                                             
| | ------------------------------------------------------------
| | The Board of Managers may amend our plan of
    liquidation.





| |                                                                                                                                                                                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Board of Managers will have the authority to sell our
    remaining property interest under terms less favorable that
    those assumed for the purpose of estimating our net liquidation
    value range.





| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | Our plan of liquidation may lead to unit holder litigation
    which could result in substantial costs and distract our
    Manager.



9



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##### Table of Contents







| |                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our Managers executives, the members on its Board of
    Managers and our Manager have conflicts of interest that differ
    from our unit holders as a result of the liquidation.









| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | Our plan of liquidation has caused our accounting basis to
    change, which could require us to write-down our assets.

going-concern




| |                                                                                                
| | -----------------------------------------------------------------------------------------------
| | We may be unable to sell our interest in a limited
    liability company at our expected value.

tenant-in


10



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| |                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Unit holders could be liable to the extent of liquidating
    distributions received if contingent reserves are insufficient
    to satisfy our liabilities.





Other Risks of Our Business




| |                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The pending SEC investigation of our Manager could result
    in regulatory actions against us which could negatively impact
    our ability to pay distributions.

In the matter of Triple Net Properties, LLC.




| |                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | As a result of our failure to timely file our Form 10
    and other reports and documents required by the Exchange Act, we
    may be subject to SEC enforcement action or other legal
    action.





| |                                                                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Erroneous disclosure in the prior performance tables in
    our offering could result in lawsuits or other actions against
    us which could have a material adverse effect upon our business
    and results of operations.



11



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| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | Distributions by us have included and will continue to
    include a return of capital.





| |                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Due to the risks involved in the ownership of real estate,
    there is no guarantee of any return on our unit holders
    investments and our unit holders may lose some or all of their
    investments.





| |   |                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------
| |  | 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 remaining property interest faces significant
    competition.





| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | The sale of our assets could cause you to recognize income
    in excess of cash distributions to you.



12



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| |                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.





| |   |                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | downturns in national, regional or local economic conditions
    where our property is located, which generally will negatively
    impact the demand for office space and rental rates;                                                                                                                               
|
| |  | changes in local market conditions such as an oversupply of
    office properties, including space available by sublease, or a
    reduction in demand for office properties, making it more
    difficult for us to lease space at attractive rental rates or at
    all;                                             
|
| |  | competition from other available office 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.                                                                                                                                                                     





| |                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Lack of diversification and illiquidity of real estate may
    make it difficult for us to sell underperforming properties or
    recover our investment in our remaining property
    interest.





| |                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 our remaining property
    interest.



13



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##### Table of Contents





| |                                                                                                                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Due to our ownership of only a single property interest in
    the Congress Center property, we are dependent upon those
    tenants that generate significant rental income at Congress
    Center, which may have a negative impact on our financial
    condition if these tenants are unable to meet their rental
    obligations.





| |                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.





| |                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our co-ownership arrangements with affiliated entities may
    not reflect solely our unit holders best interests and may
    subject these investments to increased risks.

co-ownership




| |   |                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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 not be able 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; 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.

14



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| |                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | There is currently no public market for our units.
    Therefore, it will likely be difficult for you to sell your
    units and, if you are able to sell your units, you will likely
    do so at a substantial discount from the price you paid.





| |                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We do not expect to register as an investment company
    under the Investment Company Act of 1940 and therefore we will
    not be subject to the requirements imposed on an investment
    company by such Act.





| |   |                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.







| |                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are required to register as an investment company
    under the Investment Company Act of 1940, the additional
    expenses and operational limitations associated with such
    registration may reduce your investment return.





15



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| |                                                                                                             
| | ------------------------------------------------------------------------------------------------------------
| | Our success will be dependent on the performance of our
    Manager as well as key employees of our Manager.

day-to




| |                                                                                                                                                                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our use of borrowings to partially fund 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
    activities.









16



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| |                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.





| |                                                                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we purchased our remaining property interest at a time
    when the commercial real estate market was experiencing
    substantial influxes of capital investment and competition for
    properties, the real estate we purchased may not appreciate or
    may decrease in value.





| |                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------
| | We have terminated our regular monthly distributions;
    future distributions are at the discretion of the Board of
    Managers.





| |                                                                   
| | ------------------------------------------------------------------
| | Our past performance is not a predictor of our future
    results.





| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | The conflicts of interest described below may mean we will
    not be managed solely in the best interests of our unit
    holders.





17



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| |   |                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | limit the time and services that our Manager devotes to us,
    because they will be providing similar services to G REIT, Inc.,
    T REIT, Inc., NNN 2003 Value Fund, LLC 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                                                                               
|
| |  | impair our ability to compete for the disposition of properties
    with other real estate entities that are also advised by our
    Manager and its affiliates.                                                              





| |                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The absence of arms length bargaining may mean that
    our agreements are not as favorable to our unit holders as these
    agreements otherwise would have been.








|        |           
|------- | ----------
|Item 2. | Properties

Real Estate Investments








|                         |  |          |             |  |         |  |         |       |  |  |          |  |  |         |        |  |              |   |            |              |  |  |      |   |  |   |       | 
|------------------------ |  | -------- | ----------- |  | ------- |  | ------- | ----- |  |  | -------- |  |  | ------- | ------ |  | ------------ | - | ---------- | ------------ |  |  | ---- | - |  | - | ----- | 
|                         |  | Property |             |  | GLA     |  |         | %     |  |  | Date     |  |  | Annual  |        |  | % Physical   |   |            | Annual Rent  | 
|Property Name            |  | Location |             |  | (Sq Ft) |  |         | Owned |  |  | Acquired |  |  | Rent(1) |        |  | Occupancy(2) |   |            | per Sq Ft(3) | 
|                         |  |          |             |  |         |  |         |       |  |  |          |  |  |         |        |  |              |   |            |              | 
|Unconsolidated Property: |  |          |             |  |         |  |         |       |  |  |          |  |  |         |        |  |              |   |            |              |  |  |      |   |  |   |       | 
|Congress Center          |  |          | Chicago, IL |  |         |  | 525,000 |       |  |  | 12.3%    |  |  |         | 1/9/03 |  |              | $ | 12,737,000 |              |  |  | 90.3 | % |  | $ | 26.87 | 






|    |                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------
|(1) | Annualized rental income is based on contractual base rent from
    leases in effect as of December 31, 2005.
|   
|(2) | Physical occupancy as of December 31, 2005.                                                                  
|   
|(3) | Average effective annual rent per leased square foot as of
    December 31, 2005.                            



18



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| |   |                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we believe the property is adequately covered by insurance and
    is suitable for its intended purposes;                                         
|
| |  | we have no plans for any material renovations, improvements or
    development of the property, except in accordance with planned
    budgets; and
|
| |  | our property is located in a market where we are subject to
    competition for attracting new tenants and retaining current
    tenants.         



NNN 2002 Value Fund, LLC





Congress Center







Indebtedness




19



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##### Table of Contents








|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings

SEC Investigation


In the matter of Triple Net Properties, LLC.


Accounting for
Contingencies.


Prior Performance Tables






Litigation




20



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##### Table of Contents








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






PART II







|        |                                                                                                                         
|------- | ------------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Security Holder Matters and Issuer Purchases of Equity
    Securities

Market Information






Unit Holders




Distributions






|               |  |      |       |  |      |   |     |      |  |   |     | 
|-------------- |  | ---- | ----- |  | ---- | - | --- | ---- |  | - | --- | 
|Quarters Ended |  | 2005 |       |  | 2004 |   |     | 2003 | 
|               |  |      |       |  |      |   |     |      | 
|March 31       |  | $    | 106   |  |      | $ | 100 |      |  | $ | 100 | 
|June 30        |  | $    | 2,049 |  |      | $ | 100 |      |  | $ | 100 | 
|September 30   |  |      | N/A   |  |      | $ | 104 |      |  | $ | 100 | 
|December 31    |  | $    | 2,685 |  |      | $ | 106 |      |  | $ | 100 | 



|               |  |      |       |  |      |   |     |      |  |   |     | 
|-------------- |  | ---- | ----- |  | ---- | - | --- | ---- |  | - | --- | 
|Quarters Ended |  | 2005 |       |  | 2004 |   |     | 2003 | 
|               |  |      |       |  |      |   |     |      | 
|March 31       |  | $    | 106   |  |      | $ | 100 |      |  | $ | 100 | 
|June 30        |  | $    | 2,049 |  |      | $ | 100 |      |  | $ | 100 | 
|September 30   |  |      | N/A   |  |      | $ | 104 |      |  | $ | 100 | 
|December 31    |  | $    | 2,685 |  |      | $ | 106 |      |  | $ | 100 | 



|               |  |      |       |  |      |   |     |      |  |   |      | 
|-------------- |  | ---- | ----- |  | ---- | - | --- | ---- |  | - | ---- | 
|Quarters Ended |  | 2005 |       |  | 2004 |   |     | 2003 | 
|               |  |      |       |  |      |   |     |      | 
|March 31       |  | $    | 106   |  |      | $ | 100 |      |  |   | N/A  | 
|June 30        |  | $    | 2,049 |  |      | $ | 100 |      |  | $ | 66.7 | 
|September 30   |  |      | N/A   |  |      | $ | 104 |      |  | $ | 100  | 
|December 31    |  | $    | 2,685 |  |      | $ | 106 |      |  | $ | 100  | 



21



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Equity Compensation Plan Information




22



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##### Table of Contents








|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data



10-K.


|                           |  |                         |           | 
|-------------------------- |  | ----------------------- | --------- | 
|                           |  | Liquidation Basis       |          
|                           |  |                         |          
|Selected Financial Data(1) |  | As of December 31, 2005 |          
|                           |  |                         |          
|STATEMENT OF NET ASSETS:   |  |                         |           | 
|Total assets               |  | $                       | 9,571,000 | 
|Net assets in liquidation  |  |                         | 8,689,000 | 
|Net asset value per unit   |  | $                       | 1,457.89  | 

|                                                                                    |                                          |                   |             |           | 
|----------------------------------------------------------------------------------- | ---------------------------------------- | ----------------- | ----------- | --------- | 
|                                                                                    |                                          | Liquidation Basis |            
|                                                                                    |                                          |                   |            
|                                                                                    |                                          | Period from       |            
|                                                                                    |                                          | August 31, 2005   |            
|                                                                                    |                                          | through           |            
|                                                                                    |                                          | December 31, 2005 |            
|                                                                                    |                                          |                   |            
|STATEMENT OF CHANGES IN NET ASSETS:                                                 |                                          |                   |             |          
|Net assets in liquidation, beginning of period                                      |                                          | $                 | 24,845,000  |          
|Changes to reserve for estimated costs in excess of receipts
    during liquidation |                                          |                   | (652,000    | )        
|Net increase in fair value                                                          |                                          |                   | 496,000     |          
|Distributions to unit holders                                                       |                                          |                   | (16,000,000 | )        
|                                                                                    |                                          |                   |            
|Change in net assets in liquidation                                                 |                                          |                   | (16,156,000 | )        
|                                                                                    |                                          |                   |            
|                                                                                    | Net assets in liquidation, end of period |                   | $           | 8,689,000 | 
|                                                                                    |                                          |                   |            

|                                                         |  |                     |            |  |      |   |            |      |  |   |            | 
|-------------------------------------------------------- |  | ------------------- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                                                         |  | Going Concern Basis |           
|                                                         |  |                     |           
|                                                         |  | As of December 31,  |           
|                                                         |  |                     |           
|Selected Financial Data(1)                               |  | 2004                |            |  | 2003 |   |            | 2002 | 
|                                                         |  |                     |            |  |      |   |            |      | 
|BALANCE SHEET DATA:                                      |  |                     |            |  |      |   |            |      |  |   |            | 
|Total assets                                             |  | $                   | 73,235,000 |  |      | $ | 75,228,000 |      |  | $ | 21,836,000 | 
|Mortgage loans payable, including property held for sale |  |                     | 42,172,000 |  |      |   | 41,036,000 |      |  |   | 14,141,000 | 
|Unit holders equity                                     |  |                     | 19,331,000 |  |      |   | 21,965,000 |      |  |   | 6,926,000  | 
|Book value per unit                                      |  | $                   | 3,243.46   |  |      | $ | 4,522.34   |      |  | $ | 17,668.37  | 

23



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|                                                                                                                        |                                            |                     |             |          |                          |   |                     |                    |   |   |             |         |   |   |            |         |  
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ------------------- | ----------- | -------- | ------------------------ | - | ------------------- | ------------------ | - | - | ----------- | ------- | - | - | ---------- | ------- | -
|                                                                                                                        |                                            | Going Concern Basis |            
|                                                                                                                        |                                            |                     |            
|                                                                                                                        |                                            | Period from         |             |          |                          |   | Period from May 15, |                   
|                                                                                                                        |                                            | January 1, 2005     |             |          |                          |   | 2002 (Date of       |                   
|                                                                                                                        |                                            | through             |             |          | Years Ended December 31, |   |                     | Inception) through |  
|                                                                                                                        |                                            | August 31,          |             |          |                          |   |                     | December 31,       |  
|                                                                                                                        |                                            | 2005                |             |          | 2004                     |   |                     | 2003               |   |   | 2002        |        
|                                                                                                                        |                                            |                     |             |          |                          |   |                     |                    |   |   |             |        
|OPERATING DATA:                                                                                                         |                                            |                     |             |          |                          |   |                     |                    |   |   |             |         |   |   |            |        
|Total revenues                                                                                                          |                                            | $                   |            |          |                          | $ |                    |                    |   | $ |            |         |   | $ |           |        
|                                                                                                                        |                                            |                     |             |          |                          |   |                     |                    |   |   |             |        
|Income (loss) from continuing operations before discontinued
    operations and gain on sale of real estate investments |                                            |                     | 431,000     |          |                          |   | (380,000            | )                  |   |   | 61,000      |         |   |   | (63,000    | )      
|Discontinued operations, including gain on sale                                                                         |                                            |                     | 7,723,000   |          |                          |   | 196,000             |                    |   |   | (596,000    | )       |   |   | (109,000   | )      
|                                                                                                                        |                                            |                     |             |          |                          |   |                     |                    |   |   |             |        
|Net income (loss)                                                                                                       |                                            | $                   | 8,154,000   |          |                          | $ | (184,000            | )                  |   | $ | (535,000    | )       |   | $ | (172,000   | )      
|                                                                                                                        |                                            |                     |             |          |                          |   |                     |                    |   |   |             |        
|Income (loss) per unit, basic and diluted(2):                                                                           |                                            |                     |             |          |                          |   |                     |                    |   |   |             |         |   |   |            |        
|                                                                                                                        | Income (loss) from continuing operations   |                     | $           | 72.31    |                          |   | $                   | (63.76             | ) |   | $           | 12.56   |   |   | $          | (160.71 | )
|                                                                                                                        | Income (loss) from discontinued operations |                     |             | 1,295.81 |                          |   |                     | 32.89              |   |   |             | (122.71 | ) |   |            | (278.06 | )
|                                                                                                                        |                                            |                     |             |          |                          |   |                     |                    |   |   |             |        
|                                                                                                                        | Net income (loss) per unit                 |                     | $           | 1,368.12 |                          |   | $                   | (30.87             | ) |   | $           | (110.15 | ) |   | $          | (438.77 | )
|                                                                                                                        |                                            |                     |             |          |                          |   |                     |                    |   |   |             |        
|OTHER DATA:                                                                                                             |                                            |                     |             |          |                          |   |                     |                    |   |   |             |         |   |   |            |        
|Cash flows provided by operating activities                                                                             |                                            | $                   | 3,378,000   |          |                          | $ | 2,984,000           |                    |   | $ | 2,140,000   |         |   | $ | 698,000    |        
|Cash flows provided by (used in) investing activities                                                                   |                                            |                     | 22,977,000  |          |                          |   | (2,170,000          | )                  |   |   | (47,060,000 | )       |   |   | (7,959,000 | )      
|Cash flows (used in) provided by financing activities                                                                   |                                            |                     | (22,334,000 | )        |                          |   | (1,326,000          | )                  |   |   | 42,176,000  |         |   |   | 11,584,000 |        
|Distributions declared(2)                                                                                               |                                            |                     | 12,844,000  |          |                          | $ | 2,450,000           |                    |   | $ | 1,947,000   |         |   | $ | 80,000     |        
|Distributions declared per unit                                                                                         |                                            | $                   | 2,155       |          |                          | $ | 410                 |                    |   | $ | 400         |         |   | $ | 100        |        






|    |                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Pursuant to our plan of liquidation, certain amounts in the
    prior years have been reclassified as discontinued operations
    related to all properties.
|   
|(2) | Net income (loss) and distributions per unit are based upon our
    weighted-average number of units outstanding.                                           






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

The following discussion should be read in conjunction with
Item 6, Selected Financial Data, and our
historical consolidated financial statements and related notes
thereto included elsewhere in this report.


Forward-Looking Statements




24



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##### Table of Contents



Forward-looking


Overview and Background










25



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##### Table of Contents





Business Strategy and Plan of Liquidation


10-Q, 10-K, 8-K






Dispositions in 2005




| |                                                   
| | --------------------------------------------------
| | Bank of America Plaza West  Las Vegas,
    Nevada





| |                         
| | ------------------------
| | Netpark  Tampa, Florida



26



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##### Table of Contents



Acquisitions in 2003




| |                                    
| | -----------------------------------
| | Congress Center  Chicago, Illinois





|                                         |  |               |                   | 
|---------------------------------------- |  | ------------- | ----------------- | 
|Tenant in Common                         |  | Interest Held |                  
|                                         |  |               |                  
|G REIT Inc. (our affiliate)              |  |               | 30.0%             | 
|NNN Congress Center, LLC (our affiliate) |  |               | 28.9%             | 
|Unaffiliated third parties               |  |               | 41.1%  (combined) | 



|                         |  |                          |                  |  |                             |  |                 | 
|------------------------ |  | ------------------------ | ---------------- |  | --------------------------- |  | --------------- | 
|                         |  | Membership Interest in   |                  |  |                            
|Member                   |  | NNN Congress Center, LLC |                  |  | Interest in Congress Center | 
|                         |  |                          |                  |  |                             | 
|NNN 2002 Value Fund, LLC |  |                          | 42.5%            |  |                             |  | 12.3%           | 
|T REIT, Inc.             |  |                          | 35.5%            |  |                             |  | 10.3%           | 
|Unaffiliated members     |  |                          | 22.0% (combined) |  |                             |  | 6.3% (combined) | 



30-day 30-day 30-year




| |                         
| | ------------------------
| | Netpark  Tampa, Florida

tenant-in-common, Realty-Triple


27



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Critical Accounting Policies




| |                 
| | ----------------
| | Use of Estimates





| |                                
| | -------------------------------
| | Liquidation Basis of Accounting





| |                                                                         
| | ------------------------------------------------------------------------
| | Reserve for Estimated Costs in Excess of Receipts During
    Liquidation



28



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|                                                                               |                                                                                     |            |          |          |                |   |        |           |   |   |              |          |   |   |          |            |  
|------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------- | ---------- | -------- | -------- | -------------- | - | ------ | --------- | - | - | ------------ | -------- | - | - | -------- | ---------- | -
|                                                                               |                                                                                     | August 31, |          |          | Cash Payments  |   |        | Change in |   |   | December 31, |         
|                                                                               |                                                                                     | 2005       |          |          | and (Receipts) |   |        | Estimates |   |   | 2005         |         
|                                                                               |                                                                                     |            |          |          |                |   |        |           |   |   |              |         
|Assets:                                                                        |                                                                                     |            |          |          |                |   |        |           |   |   |              |          |   |   |          |           
|                                                                               | Estimated net inflows from consolidated and unconsolidated
    operating activities |            | $        | 653,000  |                |   | $      | (9,000    | ) |   | $            | (92,000  | ) |   | $        | 552,000    |  
|Liabilities:                                                                   |                                                                                     |            |          |          |                |   |        |           |   |   |              |          |   |   |          |           
|                                                                               | Liquidation costs                                                                   |            |          | (872,000 | )              |   |        | 7,000     |   |   |              | (558,000 | ) |   |          | (1,423,000 | )
|                                                                               |                                                                                     |            |          |          |                |   |        |           |   |   |              |         
|Total reserve for estimated costs in excess of receipts during
    liquidation |                                                                                     | $          | (219,000 | )        |                | $ | (2,000 | )         |   | $ | (650,000     | )        |   | $ | (871,000 | )         
|                                                                               |                                                                                     |            |          |          |                |   |        |           |   |   |              |         



| |                          
| | -------------------------
| | Net Assets in Liquidation



|                                                                                   |  |   |            |  
|---------------------------------------------------------------------------------- |  | - | ---------- | -
|Unit holders equity as of August 31, 2005 
    going concern basis               |  | $ | 14,641,000 |  
|Increase due to estimated net realizable value of operating
    properties         |  |   | 12,255,000 |  
|Increase due to estimated net realizable value of unconsolidated
    investment    |  |   | 2,369,000  |  
|Reserve for estimated costs in excess of receipts during
    liquidation           |  |   | (219,000   | )
|Decrease due to the write-off of other intangible assets and
    other liabilities |  |   | (4,201,000 | )
|                                                                                   |  |   |           
|Adjustment to reflect the change to the liquidation basis of
    accounting        |  |   | 10,204,000 |  
|                                                                                   |  |   |           
|Estimated value of net assets in liquidation as of
    August 31, 2005             |  | $ | 24,845,000 |  
|                                                                                   |  |   |           





| |                       
| | ----------------------
| | Property Held for Sale

Accounting for the Impairment or Disposal of Long Lived
Assets






29



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| |                                                                                
| | -------------------------------------------------------------------------------
| | Revenue Recognition, Tenant Receivables and Allowance for
    Doubtful Accounts

Accounting for Leases,






| |           
| | ----------
| | Impairment





| |   |                                                                                                   
| | - | --------------------------------------------------------------------------------------------------
| |  | significant negative industry or economic trend;                                                  
|
| |  | significant underperformance relative to historical or projected
    future operating results; and
|
| |  | significant change in the manner in which the asset was used.                                     







30



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| |                                         
| | ----------------------------------------
| | Investment in Unconsolidated Real Estate



Factors Which May Influence Future Changes in Net Assets in
Liquidation




| |              
| | -------------
| | Rental Income





| |                            
| | ---------------------------
| | Scheduled Lease Expirations





| |                   
| | ------------------
| | Sarbanes-Oxley Act



Changes In Net Assets In Liquidation




| |                                                          
| | ---------------------------------------------------------
| | Period from August 31, 2005 through December 31,
    2005



Results of Operations




31



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| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | Comparison of the results of operations for the period
    from January 1, 2005 through August 31, 2005 to the
    year ended December 31, 2004

|                                                                            |                                                                           |                 |           |           |              |   |          |          |   |            |           |         |   |  |          |        |   
|--------------------------------------------------------------------------- | ------------------------------------------------------------------------- | --------------- | --------- | --------- | ------------ | - | -------- | -------- | - | ---------- | --------- | ------- | - |  | -------- | ------ | --
|                                                                            |                                                                           | Period from     |           |           |              |   |          |          |  
|                                                                            |                                                                           | January 1, 2005 |           |           | Year Ended   |   |          |          |   |           
|                                                                            |                                                                           | through         |           |           | December 31, |   |          |          |   | Percentage |          
|                                                                            |                                                                           | August 31, 2005 |           |           | 2004         |   |          | Change   |   |            | Change    |        
|                                                                            |                                                                           |                 |           |           |              |   |          |          |   |            |           |        
|Expenses:                                                                   |                                                                           |                 |           |           |              |   |          |          |   |            |           |         |   |  |          |       
|                                                                            | General and administrative                                                |                 | $         | 15,000    |              |   | $        | 99,000   |   |            | $         | (84,000 | ) |  |          | (84.8  | )%
|                                                                            |                                                                           |                 |           |           |              |   |          |          |   |            |           |        
|Loss before other income (expense) and discontinued operations              |                                                                           |                 | (15,000   | )         |              |   | (99,000  | )        |   |            | 84,000    |         |   |  | (84.8    | )%    
|Other income (expense):                                                     |                                                                           |                 |           |           |              |   |          |          |   |            |           |         |   |  |          |       
|                                                                            | Interest expense (including amortization of deferred financing
    costs) |                 |           | (3,000    | )            |   |          | (9,000   | ) |            |           | 6,000   |   |  |          | (66.7  | )%
|                                                                            | Interest income                                                           |                 |           | 76,000    |              |   |          |         |   |            |           | 76,000  |   |  |          |       |   
|                                                                            | Dividend income                                                           |                 |           |          |              |   |          | 6,000    |   |            |           | (6,000  | ) |  |          | (100.0 | )%
|                                                                            | Equity in earnings (loss) of unconsolidated real estate                   |                 |           | 373,000   |              |   |          | (278,000 | ) |            |           | 651,000 |   |  |          | (234.2 | )%
|                                                                            |                                                                           |                 |           |           |              |   |          |          |   |            |           |        
|Income (loss) from continuing operations before discontinued
    operations |                                                                           |                 | 431,000   |           |              |   | (380,000 | )        |   |            | 811,000   |         |   |  | (213.4   | )%    
|Gain on sale of real estate investments                                     |                                                                           |                 | 6,674,000 |           |              |   |         |          |   |            | 6,674,000 |         |   |  |         |       
|                                                                            | Income from discontinued operations  property held
    for sale, net     |                 |           | 1,049,000 |              |   |          | 196,000  |   |            |           | 853,000 |   |  |          | 435.2  | % 
|                                                                            |                                                                           |                 |           |           |              |   |          |          |   |            |           |        
|Net income (loss)                                                           |                                                                           | $               | 8,154,000 |           |              | $ | (184,000 | )        |   | $          | 8,338,000 |         |   |  | (4,531.5 | )%    
|                                                                            |                                                                           |                 |           |           |              |   |          |          |   |            |           |        













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| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Comparison of the year ended December 31, 2004 to the
    year ended December 31, 2003

|                                                                             |                                                                           |                          |          |          |      |   |            |        |  |   |          |          |   |  |        |        |   
|---------------------------------------------------------------------------- | ------------------------------------------------------------------------- | ------------------------ | -------- | -------- | ---- | - | ---------- | ------ |  | - | -------- | -------- | - |  | ------ | ------ | --
|                                                                             |                                                                           | Years Ended December 31, |          |          |      |   |           
|                                                                             |                                                                           |                          |          |          |      |   | Percentage |       
|                                                                             |                                                                           | 2004                     |          |          | 2003 |   |            | Change |  |   | Change   |         
|                                                                             |                                                                           |                          |          |          |      |   |            |        |  |   |          |         
|Expenses:                                                                    |                                                                           |                          |          |          |      |   |            |        |  |   |          |          |   |  |        |       
|                                                                             | General and administrative                                                |                          | $        | 99,000   |      |   | $          | 69,000 |  |   | $        | 30,000   |   |  |        | 43.4   | % 
|                                                                             |                                                                           |                          |          |          |      |   |            |        |  |   |          |         
|Loss before other income (expense) and discontinued operations               |                                                                           |                          | (99,000  | )        |      |   | (69,000    | )      |  |   | (30,000  | )        |   |  | 43.4   | %     
|Other income (expense):                                                      |                                                                           |                          |          |          |      |   |            |        |  |   |          |          |   |  |        |       
|                                                                             | Interest expense (including amortization of deferred financing
    costs) |                          |          | (9,000   | )    |   |            |       |  |   |          | (9,000   | ) |  |        |       |   
|                                                                             | Interest income                                                           |                          |          |         |      |   |            | 46,000 |  |   |          | (46,000  | ) |  |        | (100.0 | )%
|                                                                             | Dividend income                                                           |                          |          | 6,000    |      |   |            |       |  |   |          | 6,000    |   |  |        |       |   
|                                                                             | Equity in earnings (loss) of unconsolidated real estate                   |                          |          | (278,000 | )    |   |            | 84,000 |  |   |          | (362,000 | ) |  |        | (430.9 | )%
|                                                                             |                                                                           |                          |          |          |      |   |            |        |  |   |          |         
|Income (loss) from continuing operations before discontinued
    operations  |                                                                           |                          | (380,000 | )        |      |   | 61,000     |        |  |   | (441,000 | )        |   |  | (723.0 | )%    
|Income (loss) from discontinued operations  property
    held for sale, net |                                                                           |                          | 196,000  |          |      |   | (596,000   | )      |  |   | 792,000  |          |   |  | (132.9 | )%    
|                                                                             |                                                                           |                          |          |          |      |   |            |        |  |   |          |         
|Net loss                                                                     |                                                                           | $                        | (184,000 | )        |      | $ | (535,000   | )      |  | $ | 351,000  |          |   |  | (65.6  | )%    
|                                                                             |                                                                           |                          |          |          |      |   |            |        |  |   |          |         











33



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Liquidity and Capital Resources






| |                                         
| | ----------------------------------------
| | Current Sources of Capital and Liquidity







| |                      
| | ---------------------
| | Other Liquidity Needs









34



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##### Table of Contents







|                  |  |                          |            |  |      |  |       |      |  |   |           |  |  |  |       |   |  |   |           |  |  |  |       |  
|----------------- |  | ------------------------ | ---------- |  | ---- |  | ----- | ---- |  | - | --------- |  |  |  | ----- | - |  | - | --------- |  |  |  | ----- | -
|                  |  | Years Ended December 31, |           
|                  |  |                          |           
|                  |  | 2005                     |            |  | 2004 |  |       | 2003 | 
|                  |  |                          |            |  |      |  |       |      | 
|Ordinary income   |  | $                        | 144,000    |  |      |  | 0.5   | %    |  | $ | 732,000   |  |  |  | 30.0  | % |  | $ | 137,000   |  |  |  | 7.7   | %
|Capital gain      |  |                          | 14,843,000 |  |      |  | 51.1  | %    |  |   |          |  |  |  |      |   |  |   |          |  |  |  |      |  
|Return of capital |  |                          | 14,069,000 |  |      |  | 48.4  | %    |  |   | 1,705,000 |  |  |  | 70.0  | % |  |   | 1,646,000 |  |  |  | 92.3  | %
|                  |  |                          |            |  |      |  |       |      |  |   |           |  |  |  |       |   |  |  
|                  |  | $                        | 29,056,000 |  |      |  | 100.0 | %    |  | $ | 2,437,000 |  |  |  | 100.0 | % |  | $ | 1,783,000 |  |  |  | 100.0 | %
|                  |  |                          |            |  |      |  |       |      |  |   |           |  |  |  |       |   |  |  









| |           
| | ----------
| | Cash Flows



| |                                                                                                              
| | -------------------------------------------------------------------------------------------------------------
| | Comparison of the period from January 1, 2005 through
    August 31, 2005 to the year ended December 31, 2004







35



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##### Table of Contents









| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Comparison of the year ended December 31, 2004 to the
    year ended December 31, 2003











| |                  
| | -----------------
| | Capital Resources



| |        
| | -------
| | General







| |          
| | ---------
| | Financing







36



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##### Table of Contents





| |                                     
| | ------------------------------------
| | Notes Payable Due to Related Parties



| |                              
| | -----------------------------
| | Cunningham Lending Group, LLC









| |                    
| | -------------------
| | Unconsolidated Debt





|                      |  |            |      |                         |            |   |                         |                 |  |              |            |  |                |                 |            |  |  |   |            | 
|--------------------- |  | ---------- | ---- | ----------------------- | ---------- | - | ----------------------- | --------------- |  | ------------ | ---------- |  | -------------- | --------------- | ---------- |  |  | - | ---------- | 
|                      |  |            |      | As of December 31, 2005 |            |   | As of December 31, 2004 |                
|                      |  |            |      |                         |            |   |                         |                
|                      |  |            |      | Mortgage and            |            |   | NNN 2002 Value          |                 |  | Mortgage and |            |  | NNN 2002 Value |                
|                      |  | Ownership  |      |                         | Other Debt |   |                         | Fund, LLCs     |  |              | Other Debt |  |                | Fund, LLCs     |           
|Property              |  | Percentage |      |                         | Balance    |   |                         | Portion of Debt |  |              | Balance    |  |                | Portion of Debt |           
|                      |  |            |      |                         |            |   |                         |                 |  |              |            |  |                |                 |           
|Congress Center  LLC |  |            | 12.3 | %                       |            | $ | 97,500,000              |                 |  | $            | 11,973,000 |  |                | $               | 97,500,000 |  |  | $ | 11,973,000 | 

Commitments and Contingencies




| |                   
| | ------------------
| | Insurance Coverage



| |                                                                     
| | --------------------------------------------------------------------
| | Property Damage, Business Interruption, Earthquake and
    Terrorism



37



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##### Table of Contents



|                                          |  |                                                                                                                                             
|----------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------
|Type of Insurance Coverage                |  | Loss Exposure/Deductible                                                                                                                    
|                                          |  |                                                                                                                                             
|Property damage and business interruption |  | $300 million per occurrence loss limit, subject to a
    $10,000 per occurrence deductible                                                  
|Boiler and machinery                      |  | $100 million per occurrence loss limit, subject to a
    $10,000 per occurrence deductible                                                  
|Property Terrorism                        |  | $100 million per occurrence loss limit, subject to a
    $10,000 per occurrence deductible                                                  
|Earthquake (all states, except CA & OK)   |  | $20 million annual aggregate loss sublimit, subject to a
    50,000 per occurrence deductible                                               
|Earthquake (California properties only)   |  | $100 million annual aggregate loss sublimit, subject to a
    5% ($100,000 minimum) per occurrence deductible                               
|Flood  named storm                       |  | $35 million annual aggregate loss subject to a 5% total
    insurable value of the property ($100,000 minimum) per
    occurrence deductible
|Flood  Zone A                            |  | $20 million annual aggregate loss sublimit, subject to a 5%
    ($1,000,000 minimum) per occurrence deductible                              
|Flood  Zone B                            |  | $35 million annual aggregate loss sublimit, subject to a 5%
    ($25,000 minimum/100,000 maximum) per occurrence deductible                 
|Flood  all other                         |  | $100 million annual aggregate loss sublimit, subject to a
    5% ($25,000 minimum/$100,000 maximum) per occurrence deductible               
|General liability                         |  | $1 million each occurrence limit of liability, and
    $25 million annual general aggregate limit of liability,
    including terrorism     
|Automobile liability                      |  | $1 million per accident for all Owned, Hired and Non-Owned                                                                                  
|Umbrella (excess liability)               |  | $100 million annual aggregate limit of liability, including
    terrorism                                                                   



| |                          
| | -------------------------
| | Debt Service Requirements





| |                        
| | -----------------------
| | Contractual Obligations





| |                               
| | ------------------------------
| | Off-Balance Sheet Arrangements





| |                  
| | -----------------
| | SEC Investigation

In the matter of Triple Net Properties, LLC.


38



---



##### Table of Contents





Accounting for Contingencies.




| |          
| | ---------
| | Inflation



Subsequent Events




New Accounting Pronouncements


Accounting Changes and Error
Corrections  A Replacement of APB Opinion No. 20
and SFAS No. 3.


04-05, Determining Whether a General Partner, or the General
Partners as a Group, Controls a Limited Partnership or Similar
Entity When the Limited Partners Have Certain Rights 04-05). 04-05 04-05


Accounting for
Certain Investments in Debt and Equity Securities.







|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk





39



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##### Table of Contents







|                                       |  |      |           |   |      |   |            |      |  |      |   |      |  |            |   |       |  |   |            |  |  |   |   |  |  |   |            |   |  |   |            | 
|-------------------------------------- |  | ---- | --------- | - | ---- | - | ---------- | ---- |  | ---- | - | ---- |  | ---------- | - | ----- |  | - | ---------- |  |  | - | - |  |  | - | ---------- | - |  | - | ---------- | 
|                                       |  | 2005 |           |   | 2006 |   |            | 2007 |  | 2008 |   | 2009 |  | Thereafter |   | Total |  |   | Fair Value | 
|                                       |  |      |           |   |      |   |            |      |  |      |   |      |  |            |   |       |  |   |            | 
|Fixed rate debt  principal payments   |  | $    | 9,124,000 |   |      | $ |           |      |  | $    |  |      |  | $          |  |       |  | $ |           |  |  | $ |  |  |  | $ | 9,124,000  |   |  | $ | 9,345,000  | 
|Average interest rate on maturing debt |  |      | 8.63      | % |      |   |           |      |  |      |  |      |  |            |  |       |  |   |           |  |  |   |  |  |  |   | 8.63       | % |  |   |            | 
|Variable rate debt -principal payments |  | $    |          |   |      | $ | 33,048,000 |      |  | $    |  |      |  | $          |  |       |  | $ |           |  |  | $ |  |  |  | $ | 33,048,000 |   |  | $ | 34,551,000 | 
|Average interest rate on maturing debt |  |      |          |   |      |   | 5.35       | %    |  |      |  |      |  |            |  |       |  |   |           |  |  |   |  |  |  |   | 5.35       | % |  |   |            | 










|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Evaluation of disclosure controls and
procedures.


10-K 13a-14(a) 15d-14(a) 10-K


40



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##### Table of Contents



13a-15(e) 15d-15(e) 10-K.


Changes in internal control over financial
reporting.







|         |                  
|-------- | -----------------
|Item 9B. | Other Information






PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant



Board of Managers and 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; or
|
| |  | conviction of a felony of Mr. Thompson, chairman of the
    Board of Managers of our Manager.      

41



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##### Table of Contents





|                       |  |     |    |  |          |                                                                           |  |                |                      |  |  | 
|---------------------- |  | --- | -- |  | -------- | ------------------------------------------------------------------------- |  | -------------- | -------------------- |  |  | 
|Name                   |  | Age |    |  | Position |                                                                           |  | Term of Office |                     
|                       |  |     |    |  |          |                                                                           |  |                |                     
|Anthony W. Thompson    |  |     | 59 |  |          | Chief Executive Officer and Chairman of the Board of Managers             |  |                | Since 1998           | 
|Louis J. Rogers        |  |     | 49 |  |          | President and Member of the Board of Managers                             |  |                | Since 2004           | 
|Talle A. Voorhies      |  |     | 58 |  |          | Chief Operating Officer, Secretary and Member of the Board of Managers    |  |                | Since 1998           | 
|Jack R. Maurer         |  |     | 62 |  |          | Executive Vice President and Member of the Board of Managers              |  |                | Since 1998           | 
|Daniel R. Baker        |  |     | 54 |  |          | Member of the Board of Managers                                           |  |                | Since 1998           | 
|Scott D. Peters        |  |     | 48 |  |          | Chief Financial Officer, Executive Vice President and Member of the Board |  |                | Since 2004           | 
|Andrea R. Biller       |  |     | 55 |  |          | General Counsel                                                           |  |                | Since 2003           | 
|Richard T. Hutton, Jr. |  |     | 54 |  |          | Chief Investment Officer andMember of the Board of Managers               |  |                | Since 2003Since 2005 | 



Anthony W. Tony Thompson


Louis J. Rogers


Talle A. Voorhies


42



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##### Table of Contents





Jack R. Maurer


Daniel R. Dan Baker, cum laude


Scott D. Peters


Andrea R. Biller


Richard T. Hutton, Jr.


43



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##### Table of Contents





Fiduciary Relationship of our Manager to Us








Committees of Our Board of Directors




Section 16(a) Beneficial Ownership Reporting
Compliance






Code of Ethics









|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation

Compensation of Executive Officers




44



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##### Table of Contents








|         |                                                                                                       
|-------- | ------------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Security Holder Matters

PRINCIPAL UNIT HOLDERS






| |   |                                                                                          
| | - | -----------------------------------------------------------------------------------------
| |  | each person who is known to us to hold more than 5% interest in
    us;                  
|
| |  | the chief executive officer of our Manager;                                              
|
| |  | the members of the Board of Managers; and                                                
|
| |  | the members of the Board of Managers and our Managers
    executive officers as a group.

|                                                                                           |  |              |      |  |               |  |   |  
|------------------------------------------------------------------------------------------ |  | ------------ | ---- |  | ------------- |  | - | -
|                                                                                           |  | Beneficially |      |  | Percentage of | 
|                                                                                           |  | Owned No.    |      |  | Outstanding   | 
|Name                                                                                       |  | of Units     |      |  | Units         | 
|                                                                                           |  |              |      |  |               | 
|Our Manager(2)                                                                             |  |              | None |  |               |  | 0 | %
|Anthony W. Thompson(2)(3)                                                                  |  |              | None |  |               |  | 0 | %
|Members on the Board of Managers as a group(1)(2)                                          |  |              | None |  |               |  | 0 | %
|Members on the Board of Managers and our Managers
    executive officers as a group(1)(2) |  |              | None |  |               |  | 0 | %






|    |                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------
|(1) | We have no directors or executive officers.                                                            
|   
|(2) | The address for all persons named is 1551 N. Tustin
    Avenue, Suite 200, Santa Ana, California 92705.
|   
|(3) | Anthony W. Thompson is the chief executive officer of our
    Manager.                                 



Equity Compensation Plan Information









|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions



45



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##### Table of Contents



The Operating Agreement




|                                                  |  |                          |   |      |  |   |      |  |  |   |           | 
|------------------------------------------------- |  | ------------------------ | - | ---- |  | - | ---- |  |  | - | --------- | 
|                                                  |  | Years Ended December 31, |  
|                                                  |  |                          |  
|                                                  |  | 2005                     |   | 2004 |  |   | 2003 | 
|                                                  |  |                          |   |      |  |   |      | 
|Managers Compensation from Us for:               |  |                          |   |      |  |   |      |  |  |   |           | 
|Acquisition Fees(1)                               |  | $                        |  |      |  | $ |     |  |  | $ | 1,192,000 | 
|Organizational & Marketing Costs(2)               |  |                          |  |      |  |   |     |  |  | $ | 132,000   | 
|Expenses, Costs, or Fees(3)                       |  |                          |  |      |  |   |     |  |  |   |          | 
|Operating Expenses(4)                             |  |                          |  |      |  |   |     |  |  |   |          | 
|Distributions  Cash from Operations(5)           |  |                          |  |      |  |   |     |  |  |   |          | 
|Distributions  Cash from Capital Transactions(6) |  |                          |  |      |  |   |     |  |  |   |          | 
|                                                  |  |                          |   |      |  |   |      |  | 
|Total                                             |  | $                        |  |      |  | $ |     |  |  | $ | 1,324,000 | 
|                                                  |  |                          |   |      |  |   |      |  | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Our Manager is entitled to receive 4% of the funds raised in our
    Private Placement of units, for services rendered in connection
    with the due diligence investigation and acquisition of
    interests in real estate properties by us during the course of
    the investment and holding period.                                                                                                                                                                                                                                                                      
|   
|(2) | We have agreed to reimburse our Manager for organizational costs
    and marketing expenses incurred by our Manager in connection
    with our Private Placement of units. We have reimbursed our
    Manager for the amounts incurred as set forth in the table above.                                                                                                                                                                                                                                                                                                         
|   
|(3) | We have agreed to reimburse our Manager and its affiliates
    certain expenses, costs and fees incurred by our Manager,
    including, without limitation, for the cash payments, certain
    closing costs, escrow deposits, loan commitment fees, project
    studies and travel expenses related to the analysis and
    acquisitions of our properties. Our Manager did not incur and,
    therefore, was not reimbursed for, any such expenses, costs or
    fees for the years ended December 31, 2005, 2004 and 2003.                                                   
|   
|(4) | We have agreed to reimburse our Manager for reasonable and
    necessary expenses paid or incurred by our Manager in connection
    with our operation, including any legal and accounting costs and
    the costs incurred in connection with the acquisition of our
    properties, including travel, surveys, environmental and other
    studies and interest expense incurred on deposits or expenses.
    Our Manager did not incur and, therefore, was not reimbursed
    for, any such expenses, costs or fees for the years ended
    December 31, 2005, 2004 and 2003.
|   
|(5) | Our Manager is entitled to receive from us distributions that
    relate to cash from operations as discussed in Note 7 to
    the consolidated financial statements. Our Manager did not
    receive any such distributions for the years ended
    December 31, 2005, 2004 and 2003.                                                                                                                                                                                                                                                                                          
|   
|(6) | Our Manager is entitled to receive from us distributions that
    relate to cash from capital transactions as discussed in
    Note 7 to the consolidated financial statements. Our
    Manager did not receive any such distributions for the years
    ended December 31, 2005, 2004 and 2003.                                                                                                                                                                                                                                                                                

46



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##### Table of Contents



The Management Agreement




|                                   |  |                          |           |  |      |   |           |      |  |   |           | 
|---------------------------------- |  | ------------------------ | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                   |  | Years Ended December 31, |          
|                                   |  |                          |          
|                                   |  | 2005                     |           |  | 2004 |   |           | 2003 | 
|                                   |  |                          |           |  |      |   |           |      | 
|Realtys Compensation from Us for: |  |                          |           |  |      |   |           |      |  |   |           | 
|Management Fees(1)                 |  | $                        | 477,000   |  |      | $ | 840,000   |      |  | $ | 463,000   | 
|Lease Commissions(2)               |  |                          | 86,000    |  |      |   | 630,000   |      |  |   | 141,000   | 
|Project Fees(3)                    |  |                          |          |  |      |   |          |      |  |   |          | 
|Selling Commissions(4)             |  |                          | 1,280,000 |  |      |   |          |      |  |   | 1,410,000 | 
|Loan Fees(5)                       |  |                          |          |  |      |   |          |      |  |   |          | 
|                                   |  |                          |           |  |      |   |           |      | 
|Total                              |  | $                        | 1,843,000 |  |      | $ | 1,470,000 |      |  | $ | 2,014,000 | 
|                                   |  |                          |           |  |      |   |           |      | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Realty is entitled to receive for its services in managing our
    properties, a monthly management fee of up to 5% of the gross
    receipts revenue of the properties. 100% of all management fees
    are passed through to our Manager pursuant to the terms of the
    Realty-Triple Net Agreement.                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(2) | Realty is entitled to receive, for its services in leasing our
    properties, a leasing commission equal to 6% of the value of any
    lease entered into during the term of the Management Agreement
    and 3% with respect to any lease renewal. The value of such
    leases will be calculated by totaling the minimum monthly rent
    for the term of the lease. The term of such leases will not
    exceed five years for purposes of the computation and will not
    include option periods. 100% of all leasing commission received
    by Realty are passed through to our Manager pursuant to the
    terms of the Realty-Triple Net Agreement.                                                  
|   
|(3) | Realty is entitled to receive, for its services in supervising
    any construction or repair project in or about our properties, a
    construction management fee equal to 5% of any amount up to
    $25,000, 4% of any amount over $25,000 but less than $50,000,
    and 3% of any amount over $50,000 which is expended in any
    calendar year for construction or repair projects. 100% of all
    construction fees received by Realty are passed through to our
    Manager pursuant to the terms of the Realty-Triple Net
    Agreement. Realty did not incur and, therefore, was not
    reimbursed for, any such expenses, costs or fees for the years
    ended December 31, 2005, 2004 and 2003.
|   
|(4) | Realty is entitled to receive a selling commission from
    acquisitions and dispositions of properties of up to 5% of the
    gross sales price of any of the properties if the terms of the
    sale are approved by us. 75% of all selling commissions received
    by Realty are passed through to our Manager pursuant to the
    terms of the Realty-Triple Net Agreement.                                                                                                                                                                                                                                                                                                                                
|   
|(5) | Realty is entitled to receive a loan fee in the amount of 1% of
    the principal amount of all loans obtained by it for our
    properties during the term of the Property Management Agreement.
    100% of all loan fees received by Realty are passed through to
    our Manager pursuant to the terms of the Realty-Triple Net
    Agreement. Realty did not incur and, therefore, was not
    reimbursed for, any such expenses, costs or fees for the years
    ended December 31, 2005, 2004 and 2003.                                                                                                                                                                                                  

Selling Commissions




47



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##### Table of Contents





Related Party Accounts Receivable/ Payable




Notes Payable Due to Related Parties




| |                              
| | -----------------------------
| | Cunningham Lending Group, LLC







Managers Ownership Interest in the Company




Costs Incurred in Connection with Public Company Filings and
Rent




Business Relationships with Legal Counsel









|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accounting Fees and Services





48



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##### Table of Contents







|                      |  |      |         |  |      |   |         | 
|--------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|Services              |  | 2005 |         |  | 2004 |  
|                      |  |      |         |  |      |  
|Audit Fees(1)         |  | $    | 237,000 |  |      | $ | 187,000 | 
|Audit-Related Fees(2) |  |      | 40,000  |  |      |   | 11,000  | 
|Tax Fees(3)           |  |      |        |  |      |   |        | 
|All Other Fees(4)     |  |      |        |  |      |   |        | 
|                      |  |      |         |  |      |  
|Total                 |  | $    | 277,000 |  |      | $ | 198,000 | 
|                      |  |      |         |  |      |  






|    |                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Audit fees billed in 2005 and 2004 consisted of audit of our
    annual financial statements, acquisition audits, reviews of our
    quarterly financial statements, and statutory and regulatory
    audits, consents and other services related to filings with the
    SEC.
|   
|(2) | Audit-related fees billed in 2005 and 2004 consisted of
    financial accounting and reporting consultations.                                                                                                                                                                 
|   
|(3) | There were no fees billed for tax services in 2005 and 2004.                                                                                                                                                                                                                  
|   
|(4) | There were no fees billed for other services in 2005 and 2004.                                                                                                                                                                                                                







| |   |                                                                                   
| | - | ----------------------------------------------------------------------------------
| |  | consultations and consents related to SEC filings and
    registration statements;
|
| |  | consultation of accounting matters; and                                           
|
| |  | tax planning and tax compliance for the U.S. income and
    other taxes.          



49



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##### Table of Contents






PART IV







|         |                                        
|-------- | ---------------------------------------
|Item 15. | Exhibits, Financial Statement Schedules

Financial Statements:


INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


|                                                            |  |       |    | 
|----------------------------------------------------------- |  | ----- | -- | 
|                                                            |  | Pages |   
|                                                            |  |       |   
|Report of Independent Registered Public
    Accounting Firm |  |       | 51 | 
|Consolidated Statement of Net Assets                        |  |       | 52 | 
|Consolidated Balance Sheet                                  |  |       | 53 | 
|Consolidated Statement of Changes in Net
    Assets         |  |       | 54 | 
|Consolidated Statements of Operations                       |  |       | 55 | 
|Consolidated Statements of Unit
    Holders Equity         |  |       | 56 | 
|Consolidated Statements of Cash Flows                       |  |       | 57 | 
|Notes to Consolidated Financial
    Statements              |  |       | 58 | 
|Schedules                                                   |  |       | 79 | 

Financial Statement Schedules:




|                                                                                 |  |      |    | 
|-------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                 |  | Page |   
|                                                                                 |  |      |   
|Valuation and Qualifying Accounts
    (Schedule II)                              |  |      | 79 | 
|Real Estate Operating Properties and
    Accumulated Depreciation (Schedule III) |  |      | 80 | 



Exhibits:




Exhibits




Financial Statement Schedules


|                                                                                 |  |      |    | 
|-------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                 |  | Page |   
|                                                                                 |  |      |   
|Valuation and Qualifying Accounts (Schedule II)                                  |  |      | 79 | 
|Real Estate Operating Properties and Accumulated Depreciation
    (Schedule III) |  |      | 80 | 

50



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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















| |                               
| | ------------------------------
| | /s/ Deloitte &
    Touche, LLP





51



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NNN 2002 VALUE FUND, LLC





CONSOLIDATED STATEMENT OF NET ASSETS


(Liquidation Basis)


December 31, 2005


|                                                                         |  |   |           | 
|------------------------------------------------------------------------ |  | - | --------- | 
|ASSETS                                                                  
|Investment in unconsolidated real estate                                 |  | $ | 7,261,000 | 
|Cash and cash equivalents                                                |  |   | 1,310,000 | 
|Accounts receivable, net                                                 |  |   | 991,000   | 
|Accounts receivable from related parties                                 |  |   | 9,000     | 
|                                                                         |  |   |          
|Total assets                                                             |  |   | 9,571,000 | 
|                                                                        
|LIABILITIES                                                             
|Accounts payable and accrued liabilities                                 |  |   | 11,000    | 
|Reserve for estimated costs in excess of receipts during
    liquidation |  |   | 871,000   | 
|                                                                         |  |   |          
|Total liabilities                                                        |  |   | 882,000   | 
|                                                                         |  |   |          
|Net assets in liquidation                                                |  | $ | 8,689,000 | 
|                                                                         |  |   |          



52



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NNN 2002 VALUE FUND, LLC





CONSOLIDATED BALANCE SHEET


(Going Concern Basis)


December 31, 2004


|                                                                   |                                          |   |            |            | 
|------------------------------------------------------------------ | ---------------------------------------- | - | ---------- | ---------- | 
|ASSETS                                                            
|Real estate investments:                                           |                                          |   |            |           
|                                                                   | Properties held for sale, net            |   | $          | 56,382,000 | 
|                                                                   | Investment in unconsolidated real estate |   |            | 4,954,000  | 
|                                                                   |                                          |   |           
|                                                                   |                                          |   | 61,336,000 |           
|Cash and cash equivalents                                          |                                          |   | 1,067,000  |           
|Restricted cash                                                    |                                          |   | 248,000    |           
|Accounts receivable from related parties                           |                                          |   | 30,000     |           
|Other assets  properties held for sale, net                       |                                          |   | 10,554,000 |           
|                                                                   |                                          |   |           
|Total assets                                                       |                                          | $ | 73,235,000 |           
|                                                                   |                                          |   |           
|                                                                  
|LIABILITIES, MINORITY INTERESTS AND UNIT HOLDERS
    EQUITY      
|Mortgages payable secured by properties held for sale              |                                          | $ | 42,172,000 |           
|Accounts payable and accrued liabilities                           |                                          |   | 37,000     |           
|Accounts payable due to related parties                            |                                          |   | 17,000     |           
|Distributions payable                                              |                                          |   | 212,000    |           
|Notes payable to related parties                                   |                                          |   | 482,000    |           
|Liabilities  properties held for sale, net                        |                                          |   | 4,516,000  |           
|                                                                   |                                          |   |           
|                                                                   |                                          |   | 47,436,000 |           
|Minority interests  property held for sale                        |                                          |   | 6,468,000  |           
|Commitments and contingencies (Note 9)                             |                                          |   |            |           
|Unit holders equity                                               |                                          |   | 19,331,000 |           
|                                                                   |                                          |   |           
|Total liabilities, minority interests and unit holders
    equity |                                          | $ | 73,235,000 |           
|                                                                   |                                          |   |           



53



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NNN 2002 VALUE FUND, LLC





CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS


(Liquidation Basis)


For the period from August 31, 2005 through
December 31, 2005


|                                                                                     |                                                                                                                                  |   |             |             |  
|------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------- | - | ----------- | ----------- | -
|Net assets in liquidation, beginning of period                                       |                                                                                                                                  | $ | 24,845,000  |            
|                                                                                     |                                                                                                                                  |   |            
|Changes in net assets in liquidation:                                                |                                                                                                                                  |   |             |            
|Changes to reserve for estimated costs in excess of receipts
    during liquidation: |                                                                                                                                  |   |             |            
|                                                                                     | Operating (income) loss                                                                                                          |   |             | 216,000     |  
|                                                                                     | Distributions received from unconsolidated property                                                                              |   |             | (218,000    | )
|                                                                                     | Change in estimated costs in excess of receipts during
    liquidation                                                           |   |             | (650,000    | )
|                                                                                     |                                                                                                                                  |   |            
|                                                                                     | Changes to reserve for estimated costs in excess of receipts
    during liquidation                                              |   |             | (652,000    | )
|                                                                                     |                                                                                                                                  |   |            
|Change in fair value of assets and liabilities:                                      |                                                                                                                                  |   |             |            
|                                                                                     | Change in fair value of real estate investments                                                                                  |   |             | 494,000     |  
|                                                                                     | Change in assets and liabilities due to activity in the reserve
    for estimated costs in excess of receipts during liquidation |   |             | 2,000       |  
|                                                                                     |                                                                                                                                  |   |            
|                                                                                     | Net increase in fair value                                                                                                       |   |             | 496,000     |  
|                                                                                     |                                                                                                                                  |   |            
|                                                                                     | Distributions to unit holders                                                                                                    |   |             | (16,000,000 | )
|                                                                                     |                                                                                                                                  |   |            
|Change in net assets in liquidation                                                  |                                                                                                                                  |   | (16,156,000 | )          
|                                                                                     |                                                                                                                                  |   |            
|Net assets in liquidation, end of period                                             |                                                                                                                                  | $ | 8,689,000   |            
|                                                                                     |                                                                                                                                  |   |            



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NNN 2002 VALUE FUND, LLC





CONSOLIDATED STATEMENTS OF OPERATIONS


(Going Concern Basis)


For the Period from January 1, 2005 through
August 31, 2005 and the Years Ended


December 31, 2004 and 2003


|                                                                     |                                                         |             |           |           |                          |   |          |              |   |   |          |          |  
|-------------------------------------------------------------------- | ------------------------------------------------------- | ----------- | --------- | --------- | ------------------------ | - | -------- | ------------ | - | - | -------- | -------- | -
|                                                                     |                                                         | Period from |           |           |                          |   |         
|                                                                     |                                                         | January 1,  |           |           |                         
|                                                                     |                                                         | 2005        |           |           | Years Ended December 31, |  
|                                                                     |                                                         | through     |           |           |                          |  
|                                                                     |                                                         | August 31,  |           |           | December 31,             |   |          | December 31, |  
|                                                                     |                                                         | 2005        |           |           | 2004                     |   |          | 2003         |  
|                                                                     |                                                         |             |           |           |                          |   |          |              |  
|Expenses:                                                            |                                                         |             |           |           |                          |   |          |              |   |   |          |         
|                                                                     | General and administrative                              |             | $         | 15,000    |                          |   | $        | 99,000       |   |   | $        | 69,000   |  
|                                                                     |                                                         |             |           |           |                          |   |          |              |  
|Loss before other income and discontinued operations                 |                                                         |             | (15,000   | )         |                          |   | (99,000  | )            |   |   | (69,000  | )       
|Other (expense) income:                                              |                                                         |             |           |           |                          |   |          |              |   |   |          |         
|                                                                     | Interest expense                                        |             |           | (3,000    | )                        |   |          | (9,000       | ) |   |          |         |  
|                                                                     | Interest income                                         |             |           | 76,000    |                          |   |          |             |   |   |          | 46,000   |  
|                                                                     | Other income                                            |             |           |          |                          |   |          | 6,000        |   |   |          |         |  
|                                                                     | Equity in earnings (loss) of unconsolidated real estate |             |           | 373,000   |                          |   |          | (278,000     | ) |   |          | 84,000   |  
|                                                                     |                                                         |             |           |           |                          |   |          |              |  
|Income (loss) from continuing operations                             |                                                         |             | 431,000   |           |                          |   | (380,000 | )            |   |   | 61,000   |         
|Discontinued operations:                                             |                                                         |             |           |           |                          |   |          |              |   |   |          |         
|                                                                     | Gain on sale on real estate                             |             |           | 6,674,000 |                          |   |          |             |   |   |          |         |  
|                                                                     | Income (loss) from discontinued operations              |             |           | 1,049,000 |                          |   |          | 196,000      |   |   |          | (596,000 | )
|                                                                     |                                                         |             |           |           |                          |   |          |              |  
|Net income (loss)                                                    |                                                         | $           | 8,154,000 |           |                          | $ | (184,000 | )            |   | $ | (535,000 | )       
|                                                                     |                                                         |             |           |           |                          |   |          |              |  
|Net income (loss) per unit:                                          |                                                         |             |           |           |                          |   |          |              |   |   |          |         
|                                                                     | Continuing operations  basic and diluted               |             | $         | 72.31     |                          |   | $        | (63.76       | ) |   | $        | 12.56    |  
|                                                                     | Discontinued operations  basic and diluted             |             |           | 1,295.81  |                          |   |          | 32.89        |   |   |          | (122.71  | )
|                                                                     |                                                         |             |           |           |                          |   |          |              |  
|Total net income (loss) per unit  basic and diluted                 |                                                         | $           | 1,368.12  |           |                          | $ | (30.87   | )            |   | $ | (110.15  | )       
|                                                                     |                                                         |             |           |           |                          |   |          |              |  
|Weighted-average number of units outstanding  basic
    and diluted |                                                         |             | 5,960     |           |                          |   | 5,960    |              |   |   | 4,857    |         
|                                                                     |                                                         |             |           |           |                          |   |          |              |  



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NNN 2002 VALUE FUND, LLC





CONSOLIDATED STATEMENTS OF UNIT HOLDERS EQUITY


(Going Concern Basis)


For the Period from January 1, 2005 through
August 31, 2005 and the Years Ended


December 31, 2004 and 2003


|                                             |  |                 |       |  |       |   |             |  
|-------------------------------------------- |  | --------------- | ----- |  | ----- | - | ----------- | -
|                                             |  | Number of Units |       |  | Total |  
|                                             |  |                 |       |  |       |  
|BALANCE  December 31, 2002                  |  |                 | 1,733 |  |       | $ | 6,926,000   |  
|Capital contributions, net of offering costs |  |                 | 4,227 |  |       |   | 17,521,000  |  
|Distributions                                |  |                 |      |  |       |   | (1,947,000  | )
|Net loss                                     |  |                 |      |  |       |   | (535,000    | )
|                                             |  |                 |       |  |       |  
|BALANCE  December 31, 2003                  |  |                 | 5,960 |  |       |   | 21,965,000  |  
|Distributions                                |  |                 |      |  |       |   | (2,450,000  | )
|Net loss                                     |  |                 |      |  |       |   | (184,000    | )
|                                             |  |                 |       |  |       |  
|BALANCE  December 31, 2004                  |  |                 | 5,960 |  |       |   | 19,331,000  |  
|Distributions                                |  |                 |      |  |       |   | (12,844,000 | )
|Net income                                   |  |                 |      |  |       |   | 8,154,000   |  
|                                             |  |                 |       |  |       |  
|BALANCE  August 31, 2005                    |  |                 | 5,960 |  |       | $ | 14,641,000  |  
|                                             |  |                 |       |  |       |  



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NNN 2002 VALUE FUND, LLC





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Going Concern Basis)


For the Period from January 1, 2005 through
August 31, 2005 and the Years


Ended December 31, 2004 and 2003


|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |            |           |            |             |             |           | 
|------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------- | ----------------------------------------- | ----------- | ------------------------ | --------- | --------- | ---------- | ---------- | --------- | ---------- | ----------- | ----------- | --------- | 
|                                                                                            |                                                                                                                                                                  | Period from                                                     |                                           |             |                          |           |          
|                                                                                            |                                                                                                                                                                  | January 1,                                                      |                                           |             |                         
|                                                                                            |                                                                                                                                                                  | 2005 through                                                    |                                           |             | Years Ended December 31, |          
|                                                                                            |                                                                                                                                                                  | August 31,                                                      |                                           |             |                          |          
|                                                                                            |                                                                                                                                                                  | 2005                                                            |                                           |             | 2004                     |           |           | 2003       |           
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|CASH FLOWS FROM OPERATING ACTIVITIES                                                        |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |            |           |            |            
|Net income (loss)                                                                           |                                                                                                                                                                  | $                                                               | 8,154,000                                 |             |                          | $         | (184,000  | )          |            | $         | (535,000   | )          
|Adjustments to reconcile net income (loss) to net cash provided
    by operating activities |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |            |           |            |            
|                                                                                            | Gain on sale of real estate                                                                                                                                      |                                                                 |                                           | (6,674,000  | )                        |           |           |           |            |           |            |            |            
|                                                                                            | Depreciation and amortization (including deferred financing
    costs, above/below market leases and deferred rent) 
    continuing and discontinued operations |                                                                 |                                           | 456,000     |                          |           |           | 3,974,000  |            |           |            | 1,978,000   |            
|                                                                                            | Swap collar interest                                                                                                                                             |                                                                 |                                           | 191,000     |                          |           |           | (205,000   | )          |           |            | 14,000      |            
|                                                                                            | Distributions received in excess of equity in earnings of
    unconsolidated property                                                                            |                                                                 |                                           | 63,000      |                          |           |           | 890,000    |            |           |            | 967,000     |            
|                                                                                            | Minority interests                                                                                                                                               |                                                                 |                                           | 1,083,000   |                          |           |           | 312,000    |            |           |            | 54,000      |            
|                                                                                            | Change in operating assets and liabilities:                                                                                                                      |                                                                 |                                           |             |                          |           |           |            |            |           |            |             |            
|                                                                                            |                                                                                                                                                                  | Accounts receivable, including receivables from related parties |                                           |             | (37,000                  | )         |           |            | (29,000    | )         |            |             | (224,000    | )        
|                                                                                            |                                                                                                                                                                  | Other assets                                                    |                                           |             | (377,000                 | )         |           |            | (1,921,000 | )         |            |             | (296,000    | )        
|                                                                                            |                                                                                                                                                                  | Accounts payable and accrued liabilities                        |                                           |             | 519,000                  |           |           |            | (69,000    | )         |            |             | (194,000    | )        
|                                                                                            |                                                                                                                                                                  | Security deposits and prepaid rent                              |                                           |             |                         |           |           |            | 216,000    |           |            |             | 376,000     |          
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|                                                                                            |                                                                                                                                                                  |                                                                 | Net cash provided by operating activities |             |                          | 3,378,000 |           |            |            | 2,984,000 |            |             |             | 2,140,000 | 
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|CASH FLOWS FROM INVESTING ACTIVITIES                                                        |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |            |           |            |            
|                                                                                            | Purchase of real estate operating property                                                                                                                       |                                                                 |                                           |            |                          |           |           |           |            |           |            | (40,205,000 | )          
|                                                                                            | Proceeds from sale of real estate operating property                                                                                                             |                                                                 |                                           | 22,802,000  |                          |           |           |           |            |           |            |            |            
|                                                                                            | Acquisition of investment in unconsolidated real estate                                                                                                          |                                                                 |                                           |            |                          |           |           |           |            |           |            | (6,707,000  | )          
|                                                                                            | Capital expenditures                                                                                                                                             |                                                                 |                                           | (73,000     | )                        |           |           | (2,168,000 | )          |           |            | (159,000    | )          
|                                                                                            | Restricted cash                                                                                                                                                  |                                                                 |                                           | 248,000     |                          |           |           | (2,000     | )          |           |            | 11,000      |            
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|                                                                                            |                                                                                                                                                                  | Net cash provided by (used in) investing activities             |                                           |             | 22,977,000               |           |           |            | (2,170,000 | )         |            |             | (47,060,000 | )        
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|CASH FLOWS FROM FINANCING ACTIVITIES                                                        |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |            |           |            |            
|                                                                                            | Principal repayments on mortgages payable and notes payable to
    related party                                                                                 |                                                                 |                                           | (9,606,000  | )                        |           |           | (269,000   | )          |           |            | (4,605,000  | )          
|                                                                                            | Borrowings on mortgages payable                                                                                                                                  |                                                                 |                                           | 980,000     |                          |           |           | 1,405,000  |            |           |            | 31,500,000  |            
|                                                                                            | Borrowings from related party                                                                                                                                    |                                                                 |                                           |            |                          |           |           | 482,000    |            |           |            |            |            
|                                                                                            | Distributions                                                                                                                                                    |                                                                 |                                           | (13,056,000 | )                        |           |           | (2,437,000 | )          |           |            | (1,793,000  | )          
|                                                                                            | Distributions to minority interests                                                                                                                              |                                                                 |                                           | (652,000    | )                        |           |           | (957,000   | )          |           |            | (447,000    | )          
|                                                                                            | Contributions from minority interests                                                                                                                            |                                                                 |                                           |            |                          |           |           | 450,000    |            |           |            |            |            
|                                                                                            | Issuance of units, net of offering costs                                                                                                                         |                                                                 |                                           |            |                          |           |           |           |            |           |            | 17,521,000  |            
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|                                                                                            |                                                                                                                                                                  | Net cash (used in) provided by financing activities             |                                           |             | (22,334,000              | )         |           |            | (1,326,000 | )         |            |             | 42,176,000  |          
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                        |                                                                                                                                                                  |                                                                 | 4,021,000                                 |             |                          |           | (512,000  | )          |            |           | (2,744,000 | )          
|CASH AND CASH EQUIVALENTS  beginning of period                                             |                                                                                                                                                                  |                                                                 | 1,067,000                                 |             |                          |           | 1,579,000 |            |            |           | 4,323,000  |            
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|CASH AND CASH EQUIVALENTS  end of period                                                   |                                                                                                                                                                  | $                                                               | 5,088,000                                 |             |                          | $         | 1,067,000 |            |            | $         | 1,579,000  |            
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                           |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |            |           |            |            
|Cash paid for:                                                                              |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |            |           |            |            
|                                                                                            | Interest                                                                                                                                                         |                                                                 | $                                         | 1,503,000   |                          |           | $         | 2,454,000  |            |           | $          | 2,236,000   |            
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|                                                                                            | Income taxes                                                                                                                                                     |                                                                 | $                                         | 8,000       |                          |           | $         |           |            |           | $          |            |            
|                                                                                            |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |           
|SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES:                                              |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |            |           |            |            
|INVESTING ACTIVITIES                                                                        |                                                                                                                                                                  |                                                                 |                                           |             |                          |           |           |            |            |           |            |            
|                                                                                            | Minority interests of acquired property                                                                                                                          |                                                                 | $                                         |            |                          |           | $         |           |            |           | $          | 7,056,000   |            



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NNN 2002 VALUE FUND, LLC





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


For the Years Ended December 31, 2005, 2004 and 2003




|   |                                         
|-- | ----------------------------------------
|1. | Organization and Description of Business









| |                    
| | -------------------
| | Plan of Liquidation







|   |                                           
|-- | ------------------------------------------
|2. | Summary of Significant Accounting Policies





| |                 
| | ----------------
| | Use of Estimates



58



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NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                  
| | -----------------
| | Reclassifications





| |                            
| | ---------------------------
| | Principles of Consolidation

Consolidation of Variable
Interest Entities




| |                                
| | -------------------------------
| | Liquidation Basis of Accounting





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NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                        
| | -----------------------
| | Real Estate Investments



| |                     
| | --------------------
| | Operating Properties









| |                       
| | ----------------------
| | Property Held for Sale

Accounting for the Impairment or Disposal of
Long Lived Assets




60



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NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |   |                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | management, having the authority to approve the action,
    committed to a plan to sell the asset;                                                              
|
| |  | the asset was available for immediate sale in its present
    condition subject only to terms that were usual and customary
    for sales of such assets;       
|
| |  | an active program to locate a buyer and other actions required
    to complete our plan to sell the asset had been initiated;                                   
|
| |  | the sale of the asset was probable and the transfer of the asset
    was expected to qualify for recognition as a completed sale
    within one year;           
|
| |  | the asset was being actively marketed for sale at a price that
    was reasonable in relation to its current fair value; and                                    
|
| |  | given the actions required to complete our plan, it was unlikely
    that significant changes to our plan would be made or that our
    plan would be withdrawn.



| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                
| | ---------------
| | Restricted Cash





| |                   
| | ------------------
| | Minority Interests





| |                          
| | -------------------------
| | Purchase Price Allocation

Business Combinations lease-up




61



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NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


weighted-average






| |                                                                
| | ---------------------------------------------------------------
| | Tenant Receivables and Allowance for Uncollectible
    Accounts





| |                             
| | ----------------------------
| | Concentration of Credit Risk







|                                       |  |              |           |               |             |  |        |                 |  |       |            |  |  |  |          | 
|-------------------------------------- |  | ------------ | --------- | ------------- | ----------- |  | ------ | --------------- |  | ----- | ---------- |  |  |  | -------- | 
|                                       |  |              |           | Percentage of |             |  | Square |                 |  | Lease |           
|                                       |  | 2005 Annual  |           |               | 2005 Annual |  |        | Footage         |  |       | Expiration | 
|Tenant                                 |  | Base Rent(1) |           |               | Base Rent   |  |        | (Approximately) |  |       | Date       | 
|                                       |  |              |           |               |             |  |        |                 |  |       |            | 
|Homeland Security                      |  | $            | 3,279,000 |               |             |  | 25.7   | %               |  |       | 76,000     |  |  |  | 04/25/12 | 
|North American Co. Life and Health Ins |  | $            | 2,270,000 |               |             |  | 17.8   | %               |  |       | 101,000    |  |  |  | 02/28/12 | 
|Akzo Nobel, Inc.                       |  | $            | 1,938,000 |               |             |  | 15.2   | %               |  |       | 90,000     |  |  |  | 12/31/13 | 
|US Treasury                            |  | $            | 1,550,000 |               |             |  | 12.2   | %               |  |       | 37,000     |  |  |  | 02/28/13 | 
|GE Insurance Solutions                 |  | $            | 1,447,000 |               |             |  | 11.4   | %               |  |       | 67,000     |  |  |  | 12/31/12 | 

62



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NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|    |                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------
|(1) | Annualized rental income is based on contractual base rent from
    leases in effect as of December 31, 2005.



|                |  |              |           |               |             |  |      |          |  |                           |                 |  |            |      |         |  |          |  |          | 
|--------------- |  | ------------ | --------- | ------------- | ----------- |  | ---- | -------- |  | ------------------------- | --------------- |  | ---------- | ---- | ------- |  | -------- |  | -------- | 
|                |  |              |           | Percentage of |             |  |      |          |  |                           | Lease           | 
|                |  | 2004 Annual  |           |               | 2004 Annual |  |      |          |  | Square Footage            |                 |  | Expiration |     
|Tenant          |  | Base Rent(1) |           |               | Base Rent   |  |      | Property |  |                           | (Approximately) |  |            | Date |        
|                |  |              |           |               |             |  |      |          |  |                           |                 |  |            |      |        
|Merck Medco     |  | $            | 1,566,000 |               |             |  | 14.5 | %        |  |                           | Netpark(2)      |  |            |      | 143,000 |  |          |  | 10/31/11 | 
|GMC Worldwide   |  | $            | 1,495,000 |               |             |  | 13.8 | %        |  | Netpark(2)Bank of America |                 |  | 100,000    |      |         |  | 11/30/06 | 
|Bank of America |  | $            | 1,175,000 |               |             |  | 10.9 | %        |  |                           | Plaza West(2)   |  |            |      | 40,000  |  |          |  | 10/31/20 | 






|    |                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|(1) | Annualized rental income is based on contractual base rent from
    leases in effect as of December 31, 2004.                       
|   
|(2) | The Netpark property was sold on September 30, 2005, and
    the Bank of America Plaza West building was sold on
    March 15, 2005.



|                            |  |              |           |               |             |  |      |          |  |                         |                 |  |            |      |         |  |          |  |          | 
|--------------------------- |  | ------------ | --------- | ------------- | ----------- |  | ---- | -------- |  | ----------------------- | --------------- |  | ---------- | ---- | ------- |  | -------- |  | -------- | 
|                            |  |              |           | Percentage of |             |  |      |          |  |                         | Lease           | 
|                            |  | 2003 Annual  |           |               | 2003 Annual |  |      |          |  | Square Footage          |                 |  | Expiration |     
|Tenant                      |  | Base Rent(1) |           |               | Base Rent   |  |      | Property |  |                         | (Approximately) |  |            | Date |        
|                            |  |              |           |               |             |  |      |          |  |                         |                 |  |            |      |        
|Merck Medco                 |  | $            | 1,520,000 |               |             |  | 15.9 | %        |  |                         | Netpark(2)      |  |            |      | 143,000 |  |          |  | 10/31/11 | 
|GMC Worldwide               |  | $            | 1,306,000 |               |             |  | 13.7 | %        |  |                         | Netpark(2)      |  |            |      | 100,000 |  |          |  | 11/30/06 | 
|Bank of America             |  | $            | 1,152,000 |               |             |  | 12.1 | %        |  | Bank of America West(2) |                 |  | 40,000     |      |         |  | 10/31/20 | 
|Alltel Communications, Inc. |  | $            | 1,022,000 |               |             |  | 10.7 | %        |  |                         | Netpark(2)      |  |            |      | 73,000  |  |          |  | 11/30/05 | 






|    |                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|(1) | Annualized rental income is based on contractual base rent from
    leases in effect as of December 31, 2003.                       
|   
|(2) | The Netpark property was sold on September 30, 2005, and
    the Bank of America Plaza West building was sold on
    March 15, 2005.



| |                                    
| | -----------------------------------
| | Fair Value of Financial Instruments

Disclosures About Fair Value of
Financial Instruments




63



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NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                                 
| | --------------------------------
| | Derivative Financial Instruments



Derivative
Instruments and Hedging Activities.




|                |  |            |         |  |            |  |      |      |  |  |          |   |  |  |          | 
|--------------- |  | ---------- | ------- |  | ---------- |  | ---- | ---- |  |  | -------- | - |  |  | -------- | 
|Notional Amount |  | Fair Value |         |  | Instrument |  |      | Rate |  |  | Maturity |  
|                |  |            |         |  |            |  |      |      |  |  |          |  
|$31,500,000     |  | $          | 191,000 |  |            |  | Swap |      |  |  | 2.3      | % |  |  | 06/06/06 | 



| |                    
| | -------------------
| | Revenue Recognition

Accounting for Leases




| |             
| | ------------
| | Other Assets





64



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












| |             
| | ------------
| | Income Taxes





| |              
| | -------------
| | Per Unit Data

Earnings Per Share.




|                                                                      |                                             |             |           |          |                          |   |          |        |   |   |          |         |  
|--------------------------------------------------------------------- | ------------------------------------------- | ----------- | --------- | -------- | ------------------------ | - | -------- | ------ | - | - | -------- | ------- | -
|                                                                      |                                             | Period from |           |          |                          |   |         
|                                                                      |                                             | January 1,  |           |          |                          |   |         
|                                                                      |                                             | 2005        |           |          |                         
|                                                                      |                                             | through     |           |          | Years Ended December 31, |  
|                                                                      |                                             | August 31,  |           |          |                          |  
|                                                                      |                                             | 2005        |           |          | 2004                     |   |          | 2003   |  
|                                                                      |                                             |             |           |          |                          |   |          |        |  
|Income (loss) from continuing operations                              |                                             | $           | 431,000   |          |                          | $ | (380,000 | )      |   | $ | 61,000   |        
|Income (loss) from discontinued operations                            |                                             |             | 7,723,000 |          |                          |   | 196,000  |        |   |   | (596,000 | )      
|                                                                      |                                             |             |           |          |                          |   |          |        |  
|Net income (loss)                                                     |                                             | $           | 8,154,000 |          |                          | $ | (184,000 | )      |   | $ | (535,000 | )      
|                                                                      |                                             |             |           |          |                          |   |          |        |  
|Net income (loss) per unit:                                           |                                             |             |           |          |                          |   |          |        |   |   |          |        
|                                                                      | Continuing operations  basic and diluted   |             | $         | 72.31    |                          |   | $        | (63.76 | ) |   | $        | 12.56   |  
|                                                                      | Discontinued operations  basic and diluted |             |           | 1,295.81 |                          |   |          | 32.89  |   |   |          | (122.71 | )
|                                                                      |                                             |             |           |          |                          |   |          |        |  
|Total net income per unit  basic and diluted                         |                                             | $           | 1,368.12  |          |                          | $ | (30.87   | )      |   | $ | (110.15  | )      
|                                                                      |                                             |             |           |          |                          |   |          |        |  
|Weighted-average number of units outstanding   basic
    and diluted |                                             |             | 5,960     |          |                          |   | 5,960    |        |   |   | 4,857    |        
|                                                                      |                                             |             |           |          |                          |   |          |        |  

65



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                             
| | ----------------------------
| | Asset Retirement Obligations





| |         
| | --------
| | Segments





| |                                          
| | -----------------------------------------
| | Recently Issued Accounting Pronouncements

Accounting Changes and Error Corrections  A
Replacement of APB Opinion No. 20 and
SFAS No. 3.


04-05, Determining Whether a General Partner, or the General
Partners as a Group, Controls a Limited Partnership or Similar
Entity When the Limited Partners Have Certain Rights 04-05). 04-05 04-05


Accounting for
Certain Investments in Debt and Equity Securities.




|   |                                                                         
|-- | ------------------------------------------------------------------------
|3. | Reserve for Estimated Costs in Excess of Receipts During
    Liquidation



66



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                                                    |                   |            |          |          |              |   |        |           |  |   |              |          |   |   |          |            |  
|----------------------------------------------------------------------------------- | ----------------- | ---------- | -------- | -------- | ------------ | - | ------ | --------- |  | - | ------------ | -------- | - | - | -------- | ---------- | -
|                                                                                    |                   |            |          | Cash     |              |   |        |           | 
|                                                                                    |                   | August 31, |          |          | Payments and |   |        | Change in |  |   | December 31, |         
|                                                                                    |                   | 2005       |          |          | (Receipts)   |   |        | Estimates |  |   | 2005         |         
|                                                                                    |                   |            |          |          |              |   |        |           |  |   |              |         
|Assets:                                                                             |                   |            |          |          |              |   |        |           |  |   |              |          |   |   |          |           
|Estimated net inflows from consolidated and unconsolidated
    operating activities |                   | $          | 653,000  |          |              | $ | (9,000 | )         |  | $ | (92,000      | )        |   | $ | 552,000  |           
|Liabilities:                                                                        |                   |            |          |          |              |   |        |           |  |   |              |          |   |   |          |           
|                                                                                    | Liquidation costs |            |          | (872,000 | )            |   |        | 7,000     |  |   |              | (558,000 | ) |   |          | (1,423,000 | )
|                                                                                    |                   |            |          |          |              |   |        |           |  |   |              |         
|Total reserve for estimated costs in excess of receipts during
    liquidation      |                   | $          | (219,000 | )        |              | $ | (2,000 | )         |  | $ | (650,000     | )        |   | $ | (871,000 | )         
|                                                                                    |                   |            |          |          |              |   |        |           |  |   |              |         



|   |                          
|-- | -------------------------
|4. | Net Assets in Liquidation



|                                                                                   |  |   |            |  
|---------------------------------------------------------------------------------- |  | - | ---------- | -
|Unit holders equity as of August 31, 2005 
    going concern basis               |  | $ | 14,641,000 |  
|Increase due to estimated net realizable value of operating
    properties         |  |   | 12,255,000 |  
|Increase due to estimated net realizable value of unconsolidated
    investment    |  |   | 2,369,000  |  
|Reserve for estimated costs in excess of receipts during
    liquidation           |  |   | (219,000   | )
|Decrease due to the write-off of other intangible assets and
    other liabilities |  |   | (4,201,000 | )
|                                                                                   |  |   |           
|Adjustment to reflect the change to the liquidation basis of
    accounting        |  |   | 10,204,000 |  
|                                                                                   |  |   |           
|Estimated value of net assets in liquidation as of
    August 31, 2005             |  | $ | 24,845,000 |  
|                                                                                   |  |   |           





|   |                        
|-- | -----------------------
|5. | Real Estate Investments



67



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                     
| | --------------------
| | Operating Properties



|                                  |  |              |            |  
|--------------------------------- |  | ------------ | ---------- | -
|                                  |  | December 31, |           
|                                  |  | 2004         |           
|                                  |  |              |           
|Buildings and tenant improvements |  | $            | 49,115,000 |  
|Land                              |  |              | 10,768,000 |  
|                                  |  |              |           
|                                  |  |              | 59,883,000 |  
|Less: accumulated depreciation    |  |              | (3,501,000 | )
|                                  |  |              |           
|                                  |  | $            | 56,382,000 |  
|                                  |  |              |           





| |   |                                              
| | - | ---------------------------------------------
| |  | Bank of America Plaza West, Las Vegas, Nevada
|
| |  | Netpark, Tampa, Florida                      



| |                                         
| | ----------------------------------------
| | Investment in Unconsolidated Real Estate





|                               |  |              |             | 
|------------------------------ |  | ------------ | ----------- | 
|                               |  | As of        |            
|                               |  | December 31, |            
|                               |  | 2004         |            
|                               |  |              |            
|Assets (primarily real estate) |  | $            | 140,870,000 | 
|                               |  |              |            
|Mortgage notes payable         |  |              | 97,500,000  | 
|Other liabilities              |  |              | 4,736,000   | 
|Equity                         |  |              | 38,634,000  | 
|                               |  |              |            
|Total liabilities and equity   |  | $            | 140,870,000 | 
|                               |  |              |            
|Our share of equity            |  | $            | 4,954,000   | 
|                               |  |              |            

|                              |  |              |            |  |                     |   |            |      |  |   |            | 
|----------------------------- |  | ------------ | ---------- |  | ------------------- | - | ---------- | ---- |  | - | ---------- | 
|                              |  | Period from  |            |  |                    
|                              |  | January 1,   |            |  | For the Years Ended |  
|                              |  | 2005 through |            |  | December 31,        |  
|                              |  | August 31,   |            |  |                     |  
|                              |  | 2005         |            |  | 2004                |   |            | 2003 | 
|                              |  |              |            |  |                     |   |            |      | 
|Revenues                      |  | $            | 12,379,000 |  |                     | $ | 17,304,000 |      |  | $ | 14,261,000 | 
|Rental and other expenses     |  |              | 9,337,000  |  |                     |   | 19,769,000 |      |  |   | 13,576,000 | 
|                              |  |              |            |  |                     |   |            |      | 
|Net income (loss)             |  | $            | 3,042,000  |  |                     | $ | (2,465,000 | )    |  | $ | 685,000    | 
|                              |  |              |            |  |                     |   |            |      | 
|Our equity in earnings (loss) |  | $            | 373,000    |  |                     | $ | (278,000   | )    |  | $ | 84,000     | 
|                              |  |              |            |  |                     |   |            |      | 

68



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                     
| | --------------------
| | Dispositions in 2005



| |                                               
| | ----------------------------------------------
| | Bank of America Plaza West  Las Vegas, Nevada





| |                         
| | ------------------------
| | Netpark  Tampa, Florida





| |                     
| | --------------------
| | Acquisitions in 2003



| |                                    
| | -----------------------------------
| | Congress Center  Chicago, Illinois





|                                         |  |               |                  | 
|---------------------------------------- |  | ------------- | ---------------- | 
|Tenant in Common                         |  | Interest Held |                 
|                                         |  |               |                 
|G REIT Inc. (our affiliate)              |  |               | 30.0%            | 
|NNN Congress Center, LLC (our affiliate) |  |               | 28.9%            | 
|Unaffiliated third parties               |  |               | 41.1% (combined) | 



|                         |  |                        |                  |  |                      |  |                 | 
|------------------------ |  | ---------------------- | ---------------- |  | -------------------- |  | --------------- | 
|                         |  | Membership Interest in |                  |  |                     
|                         |  | NNN Congress           |                  |  | Interest in Congress | 
|Member                   |  | Center, LLC            |                  |  | Center               | 
|                         |  |                        |                  |  |                      | 
|NNN 2002 Value Fund, LLC |  |                        | 42.5%            |  |                      |  | 12.3%           | 
|T REIT, Inc.             |  |                        | 35.5%            |  |                      |  | 10.3%           | 
|Unaffiliated members     |  |                        | 22.0% (combined) |  |                      |  | 6.3% (combined) | 



69



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


30-day 30-day 30-year




| |                         
| | ------------------------
| | Netpark  Tampa, Florida







|   |                                                      
|-- | -----------------------------------------------------
|6. | Mortgages Payable Secured by Properties Held for Sale









70



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                     
|-- | --------------------
|7. | Unit Holders Equity













71



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                           
|-- | --------------------------
|8. | Related Party Transactions



| |                        
| | -----------------------
| | The Operating Agreement



|                                                  |       |                          |   |      |  |      |   |   |  |   |           |           | 
|------------------------------------------------- | ----- | ------------------------ | - | ---- |  | ---- | - | - |  | - | --------- | --------- | 
|                                                  |       | Years Ended December 31, |  
|                                                  |       |                          |  
|                                                  |       | 2005                     |   | 2004 |  | 2003 |  
|                                                  |       |                          |   |      |  |      |  
|Managers Compensation from Us for:               |       |                          |   |      |  |      |   |   |  |   |           |          
|Acquisition Fees(1)                               |       | $                        |  |      |  | $    |  |   |  | $ | 1,192,000 |          
|Organizational & Marketing Costs(2)               |       |                          |  |      |  |      |  |   |  |   | 132,000   |          
|Expenses, Costs, or Fees(3)                       |       |                          |  |      |  |      |  |   |  |   |          |          
|Operating Expenses(4)                             |       |                          |  |      |  |      |  |   |  |   |          |          
|Distributions  Cash from Operations(5)           |       |                          |  |      |  |      |  |   |  |   |          |          
|Distributions  Cash from Capital Transactions(6) |       |                          |  |      |  |      |  |   |  |   |          |          
|                                                  |       |                          |   |      |  |      |   |   | 
|                                                  | Total |                          | $ |     |  |      | $ |  |  |   | $         | 1,324,000 | 
|                                                  |       |                          |   |      |  |      |   |   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Our Manager is entitled to receive 4% of the funds raised in our
    Private Placement of units, for services rendered in connection
    with the due diligence investigation and acquisition of
    interests in real estate properties by us during the course of
    the investment and holding period.                                                                                                                                                                                                                                                                      
|   
|(2) | We have agreed to reimburse our Manager for organizational costs
    and marketing expenses incurred by our Manager in connection
    with our Private Placement of units. We have reimbursed our
    Manager for the amounts incurred as set forth in the table above.                                                                                                                                                                                                                                                                                                         
|   
|(3) | We have agreed to reimburse our Manager and its affiliates
    certain expenses, costs and fees incurred by our Manager,
    including, without limitation, for the cash payments, certain
    closing costs, escrow deposits, loan commitment fees, project
    studies and travel expenses related to the analysis and
    acquisitions of our properties. Our Manager did not incur and,
    therefore, was not reimbursed for, any such expenses, costs or
    fees for the years ended December 31, 2005, 2004 and 2003.                                                   
|   
|(4) | We have agreed to reimburse our Manager for reasonable and
    necessary expenses paid or incurred by our Manager in connection
    with our operation, including any legal and accounting costs and
    the costs incurred in connection with the acquisition of our
    properties, including travel, surveys, environmental and other
    studies and interest expense incurred on deposits or expenses.
    Our Manager did not incur and, therefore, was not reimbursed
    for, any such expenses, costs or fees for the years ended
    December 31, 2005, 2004 and 2003.
|   
|(5) | Our Manager is entitled to receive from us distributions that
    relate to cash from operations as discussed in Note 7. Our
    Manager did not receive any such distributions for the years
    ended December 31, 2005, 2004 and 2003.                                                                                                                                                                                                                                                                                                                                       
|   
|(6) | Our Manager is entitled to receive from us distributions that
    relate to cash from capital transactions as discussed in
    Note 7. Our Manager did not receive any such distributions
    for the years ended December 31, 2005, 2004 and 2003.                                                                                                                                                                                                                                                                                                                             

72



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                         
| | ------------------------
| | The Management Agreement



|                                   |       |                          |           |           |      |   |         |           |  |   |           |           | 
|---------------------------------- | ----- | ------------------------ | --------- | --------- | ---- | - | ------- | --------- |  | - | --------- | --------- | 
|                                   |       | Years Ended December 31, |          
|                                   |       |                          |          
|                                   |       | 2005                     |           |           | 2004 |   |         | 2003      | 
|                                   |       |                          |           |           |      |   |         |           | 
|Realtys Compensation from Us for: |       |                          |           |           |      |   |         |           |  |   |           |          
|Management Fees(1)                 |       | $                        | 477,000   |           |      | $ | 840,000 |           |  | $ | 463,000   |          
|Lease Commissions(2)               |       |                          | 86,000    |           |      |   | 630,000 |           |  |   | 141,000   |          
|Project Fees(3)                    |       |                          |          |           |      |   |        |           |  |   |          |          
|Selling Commissions(4)             |       |                          | 1,280,000 |           |      |   |        |           |  |   | 1,410,000 |          
|Loan Fees(5)                       |       |                          |          |           |      |   |        |           |  |   |          |          
|                                   |       |                          |           |           |      |   |         |           | 
|                                   | Total |                          | $         | 1,843,000 |      |   | $       | 1,470,000 |  |   | $         | 2,014,000 | 
|                                   |       |                          |           |           |      |   |         |           | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Realty is entitled to receive for its services in managing our
    properties, a monthly management fee of up to 5% of the gross
    receipts revenue of the properties. 100% of all management fees
    are passed through to our Manager pursuant to the terms of the
    Realty-Triple Net Agreement.                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(2) | Realty is entitled to receive, for its services in leasing our
    properties, a leasing commission equal to 6% of the value of any
    lease entered into during the term of the Management Agreement
    and 3% with respect to any lease renewal. The value of such
    leases will be calculated by totaling the minimum monthly rent
    for the term of the lease. The term of such leases will not
    exceed five years for purposes of the computation and will not
    include option periods. 100% of all leasing commission received
    by Realty are passed through to our Manager pursuant to the
    terms of the Realty-Triple Net Agreement.                                                  
|   
|(3) | Realty is entitled to receive, for its services in supervising
    any construction or repair project in or about our properties, a
    construction management fee equal to 5% of any amount up to
    $25,000, 4% of any amount over $25,000 but less than $50,000,
    and 3% of any amount over $50,000 which is expended in any
    calendar year for construction or repair projects. 100% of all
    construction fees received by Realty are passed through to our
    Manager pursuant to the terms of the Realty-Triple Net
    Agreement. Realty did not incur and, therefore, was not
    reimbursed for, any such expenses, costs or fees for the years
    ended December 31, 2005, 2004 and 2003.
|   
|(4) | Realty is entitled to receive a selling commission from
    acquisitions and dispositions of properties of up to 5% of the
    gross sales price of any of the properties if the terms of the
    sale are approved by us. 75% of all selling commissions received
    by Realty are passed through to our Manager pursuant to the
    terms of the Realty-Triple Net Agreement.                                                                                                                                                                                                                                                                                                                                
|   
|(5) | Realty is entitled to receive a loan fee in the amount of 1% of
    the principal amount of all loans obtained by it for our
    properties during the term of the Property Management Agreement.
    100% of all loan fees received by Realty are passed through to
    our Manager pursuant to the terms of the Realty-Triple Net
    Agreement. Realty did not incur and, therefore, was not
    reimbursed for, any such expenses, costs or fees for the years
    ended December 31, 2005, 2004 and 2003.                                                                                                                                                                                                  



| |                    
| | -------------------
| | Selling Commissions



73



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                           
| | ------------------------------------------
| | Related Party Accounts Receivable/ Payable





| |                                     
| | ------------------------------------
| | Notes Payable Due to Related Parties



| |                              
| | -----------------------------
| | Cunningham Lending Group, LLC









|   |                              
|-- | -----------------------------
|9. | Commitments and Contingencies



| |                  
| | -----------------
| | SEC Investigation

In the matter of Triple Net Properties, LLC.


Accounting for Contingencies.




| |                         
| | ------------------------
| | Prior Performance Tables



74



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |           
| | ----------
| | Litigation





| |                      
| | ---------------------
| | Environmental Matters





| |                    
| | -------------------
| | Unconsolidated Debt





|                      |  |            |      |                         |            |   |                         |                 |  |              |            |  |                |                 |            |  |  |   |            | 
|--------------------- |  | ---------- | ---- | ----------------------- | ---------- | - | ----------------------- | --------------- |  | ------------ | ---------- |  | -------------- | --------------- | ---------- |  |  | - | ---------- | 
|                      |  |            |      | As of December 31, 2005 |            |   | As of December 31, 2004 |                
|                      |  |            |      |                         |            |   |                         |                
|                      |  |            |      | Mortgage and            |            |   | NNN 2002 Value          |                 |  | Mortgage and |            |  | NNN 2002 Value |                
|                      |  | Ownership  |      |                         | Other Debt |   |                         | Fund, LLCs     |  |              | Other Debt |  |                | Fund, LLCs     |           
|Property              |  | Percentage |      |                         | Balance    |   |                         | Portion of Debt |  |              | Balance    |  |                | Portion of Debt |           
|                      |  |            |      |                         |            |   |                         |                 |  |              |            |  |                |                 |           
|Congress Center  LLC |  |            | 12.3 | %                       |            | $ | 97,500,000              |                 |  | $            | 11,973,000 |  |                | $               | 97,500,000 |  |  | $ | 11,973,000 | 





| |      
| | -----
| | Other



75



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##### Table of Contents



NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                 
|--- | ------------------------------------------------
|10. | Discontinued Operations  Property Held for Sale



|                                                                           |  |              |            |   |                          |   |            |      |  |   |            |  
|-------------------------------------------------------------------------- |  | ------------ | ---------- | - | ------------------------ | - | ---------- | ---- |  | - | ---------- | -
|                                                                           |  | Period from  |            |   |                          |   |           
|                                                                           |  | January 1,   |            |   |                          |   |           
|                                                                           |  | 2005 through |            |   |                         
|                                                                           |  | August 31,   |            |   | Years Ended December 31, |  
|                                                                           |  |              |            |   |                          |  
|                                                                           |  | 2005         |            |   | 2004                     |   |            | 2003 | 
|                                                                           |  |              |            |   |                          |   |            |      | 
|Rental income                                                              |  | $            | 7,231,000  |   |                          | $ | 12,358,000 |      |  | $ | 7,375,000  |  
|Rental expenses                                                            |  |              | (3,152,000 | ) |                          |   | (4,948,000 | )    |  |   | (3,240,000 | )
|Depreciation and amortization                                              |  |              | (495,000   | ) |                          |   | (4,433,000 | )    |  |   | (2,138,000 | )
|Income before interest, other income and expense and minority
    interest |  |              | 3,584,000  |   |                          |   | 2,977,000  |      |  |   | 1,997,000  |  
|Other income (expense):                                                    |  |              |            |   |                          |   |            |      |  |   |            |  
|Interest expense (including amortization of deferred financing
    costs)  |  |              | (1,517,000 | ) |                          |   | (2,520,000 | )    |  |   | (2,555,000 | )
|Other income                                                               |  |              | 65,000     |   |                          |   | 51,000     |      |  |   | 16,000     |  
|Minority interests                                                         |  |              | (1,083,000 | ) |                          |   | (312,000   | )    |  |   | (54,000    | )
|                                                                           |  |              |            |   |                          |   |            |      | 
|Income from discontinued operations                                        |  |              | 1,049,000  |   |                          |   | 196,000    |      |  |   | (596,000   | )
|Gain on sale of real estate                                                |  |              | 6,674,000  |   |                          |   |           |      |  |   |           |  
|                                                                           |  |              |            |   |                          |   |            |      | 
|                                                                           |  | $            | 7,723,000  |   |                          | $ | 196,000    |      |  | $ | (596,000   | )
|                                                                           |  |              |            |   |                          |   |            |      | 



|                                                                                     |  |              |            | 
|------------------------------------------------------------------------------------ |  | ------------ | ---------- | 
|                                                                                     |  | December 31, |           
|                                                                                     |  | 2004         |           
|                                                                                     |  |              |           
|Properties held for sale, net of accumulated depreciation of
    $3,501,000          |  | $            | 56,382,000 | 
|Identified intangible assets, net of accumulated amortization of
    $3,052,000      |  | $            | 7,846,000  | 
|Other assets                                                                         |  | $            | 2,708,000  | 
|Mortgages payable and other debt secured by properties held for
    sale             |  | $            | 42,172,000 | 
|Identified intangible liabilities, net of accumulated
    amortization of $1,226,000 |  | $            | 3,126,000  | 
|Other liabilities                                                                    |  | $            | 1,390,000  | 
|Minority interests                                                                   |  | $            | 6,468,000  | 

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NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                               
|--- | ------------------------------
|11. | Tax Treatment of Distributions



|                  |  |                          |            |  |      |  |       |      |  |   |           |  |  |  |        |   |  |   |           |  |  |  |        |  
|----------------- |  | ------------------------ | ---------- |  | ---- |  | ----- | ---- |  | - | --------- |  |  |  | ------ | - |  | - | --------- |  |  |  | ------ | -
|                  |  | Years Ended December 31, |           
|                  |  |                          |           
|                  |  | 2005                     |            |  | 2004 |  |       | 2003 | 
|                  |  |                          |            |  |      |  |       |      | 
|Ordinary income   |  | $                        | 144,000    |  |      |  | 0.5   | %    |  | $ | 732,000   |  |  |  | 30.0   | % |  | $ | 137,000   |  |  |  | 7.7    | %
|Capital gain      |  |                          | 14,843,000 |  |      |  | 51.1  | %    |  |   |          |  |  |  |       |   |  |   |          |  |  |  |       |  
|Return of capital |  |                          | 14,069,000 |  |      |  | 48.4  | %    |  |   | 1,705,000 |  |  |  | 70.0   | % |  |   | 1,646,000 |  |  |  | 92.3   | %
|                  |  |                          |            |  |      |  |       |      |  |   |           |  |  |  |        |   |  |  
|                  |  | $                        | 29,056,000 |  |      |  | 100.0 | %    |  | $ | 2,437,000 |  |  |  | 100.00 | % |  | $ | 1,783,000 |  |  |  | 100.00 | %
|                  |  |                          |            |  |      |  |       |      |  |   |           |  |  |  |        |   |  |  



|    |                                    
|--- | -----------------------------------
|12. | Selected Quarterly Data (Unaudited)





|                                                                                       |                                          |                   |             |           |               |   |            |            | 
|-------------------------------------------------------------------------------------- | ---------------------------------------- | ----------------- | ----------- | --------- | ------------- | - | ---------- | ---------- | 
|                                                                                       |                                          | Liquidation Basis |            
|                                                                                       |                                          |                   |            
|                                                                                       |                                          | Period from       |             |           | Period from   |  
|                                                                                       |                                          | September 30,     |             |           | August 31,    |  
|                                                                                       |                                          | 2005              |             |           | 2005          |  
|                                                                                       |                                          | through           |             |           | through       |  
|                                                                                       |                                          | December 31,      |             |           | September 30, |  
|                                                                                       |                                          | 2005              |             |           | 2005          |  
|                                                                                       |                                          |                   |             |           |               |  
|Net assets in liquidation, beginning of period                                         |                                          | $                 | 24,765,000  |           |               | $ | 24,845,000 |           
|                                                                                       |                                          |                   |             |           |               |  
|Change to the reserve for estimated costs in excess of receipts
    during liquidation |                                          |                   | (787,000    | )         |               |   | 135,000    |           
|Net change in fair value                                                               |                                          |                   | 711,000     |           |               |   | (215,000   | )         
|Distributions to unit holders                                                          |                                          |                   | (16,000,000 | )         |               |   |           |           
|                                                                                       |                                          |                   |             |           |               |  
|Change in net assets in liquidation                                                    |                                          |                   | (16,076,000 | )         |               |   | (80,000    | )         
|                                                                                       |                                          |                   |             |           |               |  
|                                                                                       | Net assets in liquidation, end of period |                   | $           | 8,689,000 |               |   | $          | 24,765,000 | 
|                                                                                       |                                          |                   |             |           |               |  

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NNN 2002 VALUE FUND, LLC


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                 |                                       |                     |         |       |                |   |         |           |  |   |           |          | 
|------------------------------------------------ | ------------------------------------- | ------------------- | ------- | ----- | -------------- | - | ------- | --------- |  | - | --------- | -------- | 
|                                                 |                                       | Going Concern Basis |        
|                                                 |                                       |                     |        
|                                                 |                                       | Period from         |         |       |               
|                                                 |                                       | June 30,            |         |       |               
|                                                 |                                       | 2005                |         |       | Quarters Ended |  
|                                                 |                                       | through             |         |       |                |  
|                                                 |                                       | August 31,          |         |       | June 30,       |   |         | March 31, | 
|                                                 |                                       | 2005                |         |       | 2005           |   |         | 2005      | 
|                                                 |                                       |                     |         |       |                |   |         |           | 
|Revenues                                         |                                       | $                   |        |       |                | $ |        |           |  | $ |          |         
|                                                 |                                       |                     |         |       |                |   |         |           | 
|Expenses                                         |                                       |                     |        |       |                |   | 38,000  |           |  |   | (23,000   | )       
|                                                 |                                       |                     |         |       |                |   |         |           | 
|Equity in earnings of unconsolidated real estate |                                       |                     | 89,000  |       |                |   | 219,000 |           |  |   | 65,000    |         
|                                                 |                                       |                     |         |       |                |   |         |           | 
|Income from continuing operations                |                                       |                     | 94,000  |       |                |   | 252,000 |           |  |   | 85,000    |         
|Income from discontinued operations              |                                       |                     | 235,000 |       |                |   | 375,000 |           |  |   | 7,113,000 |         
|                                                 |                                       |                     |         |       |                |   |         |           | 
|Net income                                       |                                       | $                   | 329,000 |       |                | $ | 627,000 |           |  | $ | 7,198,000 |         
|                                                 |                                       |                     |         |       |                |   |         |           | 
|Earnings per unit-basic and diluted              |                                       |                     |         |       |                |   |         |           |  |   |           |         
|                                                 | Continuing operations                 |                     | $       | 15.77 |                |   | $       | 42.28     |  |   | $         | 14.26    | 
|                                                 | Discontinued operations               |                     |         | 39.43 |                |   |         | 62.92     |  |   |           | 1,193.46 | 
|                                                 |                                       |                     |         |       |                |   |         |           | 
|                                                 | Net income per unit-basic and diluted |                     | $       | 55.20 |                |   | $       | 105.20    |  |   | $         | 1,207.72 | 
|                                                 |                                       |                     |         |       |                |   |         |           | 

|                                                        |                                              |                     |          |        |               |   |          |          |   |   |           |       |   |   |        |      | 
|------------------------------------------------------- | -------------------------------------------- | ------------------- | -------- | ------ | ------------- | - | -------- | -------- | - | - | --------- | ----- | - | - | ------ | ---- | 
|                                                        |                                              | Going Concern Basis |         
|                                                        |                                              | Quarters Ended      |         
|                                                        |                                              |                     |         
|                                                        |                                              | December 31,        |          |        | September 30, |   |          | June 30, |   |   | March 31, |      
|                                                        |                                              | 2004                |          |        | 2004          |   |          | 2004     |   |   | 2004      |      
|                                                        |                                              |                     |          |        |               |   |          |          |   |   |           |      
|Revenues                                                |                                              | $                   |         |        |               | $ |         |          |   | $ |          |       |   | $ |       |     
|                                                        |                                              |                     |          |        |               |   |          |          |   |   |           |      
|Expenses                                                |                                              |                     | 12,000   |        |               |   |         |          |   |   | 87,000    |       |   |   |       |     
|                                                        |                                              |                     |          |        |               |   |          |          |   |   |           |      
|Equity in earnings (loss) of unconsolidated real estate |                                              |                     | (211,000 | )      |               |   | (139,000 | )        |   |   | 69,000    |       |   |   | 3,000  |     
|                                                        |                                              |                     |          |        |               |   |          |          |   |   |           |      
|Income (loss) from continuing operations                |                                              |                     | (224,000 | )      |               |   | (142,000 | )        |   |   | (17,000   | )     |   |   | 3,000  |     
|Income (loss) from discontinued operations              |                                              |                     | 68,000   |        |               |   | (8,000   | )        |   |   | 108,000   |       |   |   | 28,000 |     
|                                                        |                                              |                     |          |        |               |   |          |          |   |   |           |      
|Net income (loss)                                       |                                              | $                   | (156,000 | )      |               | $ | (150,000 | )        |   | $ | 91,000    |       |   | $ | 31,000 |     
|                                                        |                                              |                     |          |        |               |   |          |          |   |   |           |      
|Earnings (loss) per unit-basic and diluted              |                                              |                     |          |        |               |   |          |          |   |   |           |       |   |   |        |     
|                                                        | Continuing operations                        |                     | $        | (37.58 | )             |   | $        | (23.83   | ) |   | $         | (2.85 | ) |   | $      | 0.50 | 
|                                                        | Discontinued operations                      |                     |          | 11.41  |               |   |          | (1.34    | ) |   |           | 18.12 |   |   |        | 4.70 | 
|                                                        |                                              |                     |          |        |               |   |          |          |   |   |           |      
|                                                        | Net income (loss) per unit-basic and diluted |                     | $        | (26.17 | )             |   | $        | (25.17   | ) |   | $         | 15.27 |   |   | $      | 5.20 | 
|                                                        |                                              |                     |          |        |               |   |          |          |   |   |           |      



|    |                  
|--- | -----------------
|13. | Subsequent Events



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NNN 2002 VALUE FUND, LLC





SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS


|                                                                                                    |  |              |         |           |            |   |         |            |  |            |   |            |        |   |         |  |  |   |         | 
|--------------------------------------------------------------------------------------------------- |  | ------------ | ------- | --------- | ---------- | - | ------- | ---------- |  | ---------- | - | ---------- | ------ | - | ------- |  |  | - | ------- | 
|                                                                                                    |  |              |         | Additions |            |   |         |           
|                                                                                                    |  |              |         |           |            |   |         |           
|                                                                                                    |  | Balance at   |         |           | Charged to |   |         | Charged to |  |            |   | Balance at |       
|                                                                                                    |  | Beginning of |         |           | Costs and  |   |         | Other      |  |            |   | End of     |       
|Description                                                                                         |  | Period       |         |           | Expenses   |   |         | Accounts   |  | Deductions |   |            | Period |  
|                                                                                                    |  |              |         |           |            |   |         |            |  |            |   |            |        |  
|Period from January 1, 2005 through August 31,
    2005  Reserve deducted from accounts receivable |  | $            | 130,000 |           |            | $ |        |            |  | $          |  |            |        | $ | 130,000 |  |  | $ |        | 
|Year ended December 31, 2004  Reserve deducted
    from accounts receivable                        |  | $            | 126,000 |           |            | $ | 100,000 |            |  | $          |  |            |        | $ | 96,000  |  |  | $ | 130,000 | 
|Year ended December 31, 2003  Reserve deducted
    from accounts receivable                        |  | $            | 7,000   |           |            | $ | 119,000 |            |  | $          |  |            |        | $ |        |  |  | $ | 126,000 | 

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NNN 2002 VALUE FUND, LLC





SCHEDULE III  REAL ESTATE OPERATING
PROPERTIES AND


ACCUMULATED DEPRECIATION






|                                |  |      |             |  
|------------------------------- |  | ---- | ----------- | -
|                                |  | 2005 |            
|                                |  |      |            
|Balance as of December 31, 2004 |  | $    | 59,883,000  |  
|Additions                       |  |      | 247,000     |  
|Liquidation adjustment, net(1)  |  |      | (10,065,000 | )
|Dispositions                    |  |      | (50,065,000 | )
|                                |  |      |            
|Balance as of December 31, 2005 |  | $    |            |  
|                                |  |      |            



|                                |  |      |            |  
|------------------------------- |  | ---- | ---------- | -
|                                |  | 2005 |           
|                                |  |      |           
|Balance as of December 31, 2004 |  | $    | 3,501,000  |  
|Additions(2)                    |  |      | 222,000    |  
|Disposals                       |  |      | (3,723,000 | )
|                                |  |      |           
|Balance as of December 31, 2005 |  | $    |           |  
|                                |  |      |           






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Under the liquidation basis of accounting, our real estate
    holdings were adjusted to their estimated fair value, net of the
    minority interests share. As a result, the net liquidation
    adjustment is the net adjustment we made to the carrying value
    of the property in order to reflect its fair value. The
    liquidation adjustment reflects a decrease for the minority
    interests share of fair value, offset by an increase in
    total fair value.
|   
|(2) | Depreciation expense has not been recorded since August 31,
    2005 as a result of the adoption of our plan of liquidation,
    because all assets are considered held for sale.                                                                                                                                                                                                                                                                                                

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SIGNATURES






| |                                            
| | -------------------------------------------
| | NNN 2002 Value Fund, LLC                   
| | (Registrant)                               
|
| | By: Triple Net Properties, LLC, its Manager



| |     |                        
| | --- | -----------------------
| | By: | /s/ Anthony W. Thompson

| |                        
| | -----------------------
| |                        
| | Anthony W. Thompson    
| | Chief Executive Officer
| | Triple Net Properties  





|                                                     |  |                                                                                             |  |                |  | 
|---------------------------------------------------- |  | ------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Name                                                 |  | Title                                                                                       |  | Date          
|                                                     |  |                                                                                             |  |               
|                                                    
|/s/ Anthony W. ThompsonAnthony W. Thompson           |  | Chief Executive Officer and
    Member, Board of Managers of
    Triple Net Properties, LLC |  | March 28, 2006
|                                                    
|/s/ Scott D. PetersScott D. Peters                   |  | Chief Financial Officer and
    Member, Board of Managers of
    Triple Net Properties, LLC |  | March 28, 2006
|                                                    
|/s/ Daniel R. BakerDaniel R. Baker                   |  | Member, Board of Managers of
    Triple Net Properties, LLC                                 |  | March 28, 2006
|                                                    
|/s/ Jack R. MaurerJack R. Maurer                     |  | Member, Board of Managers of
    Triple Net Properties, LLC                                 |  | March 28, 2006
|                                                    
|/s/ Louis J. RogersLouis J. Rogers                   |  | Member, Board of Managers of
    Triple Net Properties, LLC                                 |  | March 28, 2006
|                                                    
|/s/ Talle A. VoorhiesTalle A. Voorhies               |  | Member, Board of Managers of
    Triple Net Properties, LLC                                 |  | March 28, 2006
|                                                    
|/s/ Richard T.
    Hutton, Jr.Richard T. Hutton, Jr. |  | Member, Board of Managers of
    Triple Net Properties, LLC                                 |  | March 28, 2006

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EXHIBIT INDEX


S-K,


10-K S-K).


|         |    |             |  |                                                                                                                                                                                                                                                                                                                                                    
|-------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Item No. |    | Description
|         |    |            
|         | 2  | .1          |  | NNN 2002 Value Fund, LLC Plan of Liquidation and Dissolution, as
    approved by stockholders on September 7, 2005 and as
    currently in effect (included as Exhibit A to our
    Definitive Proxy Statement filed on August 4, 2005 and
    incorporated herein by reference)                                                                   
|        
|         | 3  | .1          |  | Articles of Organization of NNN 2002 Value Fund, LLC, dated
    May 1, 2002. (included as Exhibit 3.1 to our Amendment
    No. 1 to Form 10 Registration Statement filed on
    February 28, 2005 and incorporated herein by reference.)                                                                                                           
|        
|         | 10 | .1          |  | Operating Agreement of NNN 2002 Value Fund, LLC, (included as
    Exhibit 10.1 to our Amendment No. 1 to Form 10
    Registration Statement filed on February 28, 2005 and
    incorporated herein by reference.)                                                                                                                                  
|        
|         | 10 | .2          |  | Management Agreement between NNN 2002 Value Fund, LLC and Triple
    Net Properties Realty, Inc. (included as Exhibit 10.2 to
    our Amendment No. 1 to Form 10 Registration Statement filed
    on February 28, 2005 and incorporated herein by reference.)                                                                                      
|        
|         | 10 | .3          |  | Promissory Note A by and between NNN BOA West, LLC and
    Massachusetts Mutual Life Insurance Company. (included as
    Exhibit 10.3 to our Amendment No. 1 to Form 10
    Registration Statement filed on February 28, 2005 and
    incorporated herein by reference.)                                                                           
|        
|         | 10 | .4          |  | Loan Agreement by and among Principal Commercial Funding, LLC,
    Principal Life Insurance Company, NNN Congress Center, LLC and
    other tenant-in-common borrowers thereunder. (included as
    Exhibit 10.5 to our Amendment No. 1 to Form 10
    Registration Statement filed on February 28, 2005 and
    incorporated herein by reference.)
|        
|         | 10 | .5          |  | Senior Loan Agreement among Fleet National Bank, Fleet
    Securities, LLC, NNN Netpark 25, LLC and other
    tenant-in-common borrowers thereunder. (included as
    Exhibit 10.6 to our Amendment No. 1 to Form 10
    Registration Statement filed on February 28, 2005 and
    incorporated herein by reference.)                              
|        
|         | 10 | .6          |  | Form of Tenants in Common Agreement among the Tenants in Common
    of Congress Center. (included as Exhibit 10.7 to our
    Amendment No. 1 to Form 10 Registration Statement filed on
    February 28, 2005 and incorporated herein by reference.)                                                                                               
|        
|         | 10 | .7          |  | Form of Tenants in Common Agreement among the Tenants in Common
    of Netpark. (included as Exhibit 10.8 to our Amendment
    No. 1 to Form 10 Registration filed on February 28,
    2005 and incorporated herein by reference.)                                                                                                                 
|        
|         | 10 | .8          |  | Agreement for Purchase and Sale of Real Property and Escrow
    Instructions dated January 7, 2005 by and between NNN BOA
    West, LLC and First States Group, L.P. (included as
    Exhibit 99 to our Form 8-K filed on January 24,
    2005 and incorporated herein by reference.)                                                              
|        
|         | 10 | .9          |  | First Amendment to Agreement for Purchase and Sale of Real
    Property and Escrow Instructions dated February 24, 2005 by
    and between NNN BOA West, LLC and First States Group, L.P.
    (included as Exhibit 99 to our Form 8-K filed on
    February 28, 2005 and incorporated herein by reference.)                                        
|        
|         | 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.

82