UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No.  )

Filed by the Registrant þ
Filed by a Party other than the Registrant o

Check the appropriate box:

o Preliminary Proxy Statement

o Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

þ Definitive Proxy Statement

o Definitive Additional Materials

o Soliciting Material Pursuant to §240.14a-12

NNN APARTMENT REIT, INC.

(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

þ No fee required.

o Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.

(1)	Title of each class of securities to which transaction applies:
(2)	Aggregate number of securities to which transaction applies:
(3)	Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
(4)	Proposed maximum aggregate value of transaction:
(5)	Total fee paid:

o Fee paid previously with preliminary materials.

o Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

(1)	Amount Previously Paid:
(2)	Form, Schedule or Registration Statement No.:
(3)	Filing Party:
(4)	Date Filed:

TABLE OF CONTENTS

NNN APARTMENT REIT, INC.

1551 N. Tustin Avenue, Suite 200

Santa Ana, California 92705

Telephone: (714) 667-8252

April 27, 2007

Dear Stockholder:

On behalf of the Board of Directors, I cordially invite you to attend the 2007 Annual Meeting of Stockholders of NNN Apartment REIT, Inc. to be held on June 12, 2007 at 9:00 a.m. local time, at the Irvine Marriott, 18000 Von Karman Avenue, Irvine, California 92612. We look forward to your attendance.

The accompanying Notice of Annual Meeting and Proxy Statement describe the formal business to be acted upon by the stockholders. A report on the status of our initial public offering and our portfolio of properties will also be presented at the annual meeting and our stockholders will have an opportunity to ask questions.

Your vote is very important. Regardless of the number of our shares you own, it is very important that your shares be represented. ACCORDINGLY, WHETHER OR NOT YOU INTEND TO BE PRESENT AT THE ANNUAL MEETING IN PERSON, I URGE YOU TO SUBMIT YOUR PROXY AS SOON AS POSSIBLE. You may do this by completing, signing and dating the enclosed proxy card and returning it via fax to (212) 645-8046 or in the accompanying postage-paid return envelope. You also may vote via the Internet at https://www.proxyvotenow.com/aptre or by telephone by dialing toll-free 1-866-888-4066. Please follow the directions provided in the proxy statement. This will not prevent you from voting in person at our annual meeting, but will assure that your vote will be counted if you are unable to attend our annual meeting.

YOUR VOTE COUNTS. THANK YOU FOR YOUR ATTENTION TO THIS MATTER, AND FOR YOUR CONTINUED SUPPORT OF, AND INTEREST IN, OUR COMPANY.

Sincerely,

Stanley J. Olander, Jr.

Chief Executive Office, President and Chairman

NNN APARTMENT REIT, INC.

1551 N. Tustin Avenue, Suite 200

Santa Ana, California 92705

Telephone: (714) 667-8252

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

TO BE HELD JUNE 12, 2007

NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders of NNN Apartment REIT, Inc., a Maryland corporation, will be held on June 12, 2007 at 9:00 a.m. local time, at the Irvine Marriott, 18000 Von Karman Avenue, Irvine, California 92612, for the following purposes:

1.	To elect five directors, each for a term of one year; and
2.	To ratify the selection of Deloitte & Touche LLP as our independent registered public accounting firm for the current fiscal year.

These items are discussed in the following pages, which are made part of this notice. Our stockholders of record on April 12, 2007, are entitled to vote at the annual meeting. A list of stockholders entitled to vote will be available for inspection at the offices of NNN Apartment REIT, Inc., 1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705, for the ten day period immediately preceding the annual meeting.

Please sign and date the accompanying proxy card and return it promptly by fax to (212) 645-8046 or in the enclosed postage-paid envelope whether or not you plan to attend. You also may vote your shares electronically via the Internet at https://www.proxyvotenow.com/aptre or by telephone by dialing toll-free 1-866-888-4066. Instructions are included with the proxy card. If you attend the annual meeting, you may vote in person if you wish, even if you previously have returned your proxy card or voted your shares electronically. You may revoke your proxy at any time prior to its exercise.

By Order of the Board of Directors

Andrea R. Biller

Secretary

NNN APARTMENT REIT, INC.

1551 N. Tustin Avenue, Suite 200

Santa Ana, California 92705

Telephone: (714) 667-8252

PROXY STATEMENT

The enclosed proxy is solicited by the Board of Directors of NNN Apartment REIT, Inc., or NNN Apartment REIT, for use in voting at the Annual Meeting of Stockholders to be held on June 12, 2007 at 9:00 a.m. local time, at the Irvine Marriott, 18000 Von Karman Avenue, Irvine, California 92612, and at any adjournment or postponement thereof, for the purposes set forth in the attached notice. The proxy solicitation materials are being mailed to stockholders on or about April 27, 2007.

About the Meeting

What is the purpose of the annual meeting?

At our annual meeting, stockholders will vote upon the matters outlined in the accompanying notice of annual meeting, including:

•  The election of five directors, each for a term of one year; and

•  Ratification of the selection of Deloitte & Touche LLP, or Deloitte, as our independent registered public accounting firm for the year ending December 31, 2007.

Management will report on the status of our initial public offering, or our Offering, and our portfolio of properties and respond to questions from stockholders. In addition, representatives of Deloitte are expected to be at the annual meeting to respond to questions.

What are the Board of Directors’ voting recommendations?

Unless you give other instructions on your proxy card, the individuals named on the card as proxy holders will vote in accordance with the recommendations of the Board of Directors. The Board of Directors recommends that you vote your shares “FOR” the election of each of the nominees of the Board of Directors and “FOR” the ratification of Deloitte as our independent registered public accounting firm. No director has informed us that he intends to oppose any action intended to be taken by us.

What happens if additional proposals are presented at the annual meeting?

Other than the matters described in this proxy statement, we do not expect any additional matters to be presented for a vote at the annual meeting. If other matters are presented and you vote by proxy, your proxy grants the individuals named as proxy holders the discretion to vote your shares on any additional matters properly presented for a vote at the meeting.

Who is entitled to vote?

Only stockholders of record at the close of business on April 12, 2007 are entitled to receive notice of the annual meeting and to vote the shares of common stock that they hold on that date at the annual meeting, or any postponements or adjournments of the annual meeting. As of the record date, we had 3,392,265 shares of common stock issued and outstanding and entitled to vote. Each outstanding share of common stock entitles its holder to cast one vote on each proposal to be voted on.

What constitutes a quorum?

If a majority of the shares outstanding on the record date are present at the annual meeting, either in person or by proxy, we will have a quorum at the meeting, permitting the conduct of business at the meeting. Abstentions and broker “non-vote” occur when a broker, bank of other nominee holding shares for a beneficial owner does not vote on a particular proposal because the nominee does not have discretionary voting power

with respect to that matter and has not received voting instructions from the beneficial owner. Abstentions and broker non-votes will be counted to determine whether a quorum is present.

How do I vote my shares at the annual meeting?

Voting by Mail — Stockholders may vote by completing the attached proxy card and mailing it in the enclosed self-addressed postage-paid return envelope.

Voting by Fax — Stockholders may vote by completing the attached proxy card and faxing it to (212) 645-8046 until 5:00 p.m. Pacific Daylight Time on June 11, 2007.

Voting by Telephone — Stockholders may vote by telephone by dialing toll-free at 1-866-888-4066 until 5:00 p.m. Pacific Daylight Time on June 11, 2007.

Voting by Internet — Stockholders may vote electronically using the Internet at https://www.proxyvotenow.com/aptre until 5:00 p.m. Pacific Daylight Time on June 11, 2007.

Can I change my vote after I return my proxy card or after I vote by telephone or over the Internet?

If you are a record holder, you may change your vote at any time before the proxy is exercised at the annual meeting by delivering to our Secretary a written notice of revocation or a properly signed proxy bearing a later date, or by attending the Annual Meeting and voting in person (although attendance at the meeting will not cause your previously granted proxy to be revoked unless you specifically so request). To revoke a proxy previously submitted by telephone or over the Internet, you may simply vote again at a later date, but before the deadline for telephone or Internet voting set fourth above using the same procedures, in which case the later submitted vote will be recorded and the earlier vote revoked.

If you hold shares of our common stock in “street name,” you will need to contact the institution that holds your shares and follow its instructions for revoking a proxy.

What vote is required to approve each proposal that comes before the annual meeting?

To obtain approval of the election of the director nominees, the affirmative vote of a majority of the shares of our common stock present in person or by proxy at a meeting at which a quorum is present must be cast in favor of the proposal. To obtain approval of the ratification of the appointment of Deloitte, the affirmative vote of a majority of all votes cast at a meeting at which a quorum is present must be cast in favor of the proposal. Abstentions and broker non-votes will count as votes against the proposal to elect the director nominees but will have no impact on the proposal to ratify the appointment of Deloitte.

Who will bear the costs of soliciting votes for the meeting?

NNN Apartment REIT will bear the entire cost of the solicitation of proxies from its stockholders. We have retained Ellen Philip Associates, Inc. to assist us in connection with the solicitation of proxies for the Annual Meeting. We expect to pay approximately $27,000 for such services. In addition to the mailing of these proxy materials, the solicitation of proxies or votes may be made in person, by telephone or by electronic communication by our directors and officers who will not receive any additional compensation for such solicitation activities. We will also reimburse brokerage houses and other custodians, nominees and fiduciaries for their reasonable out-of-pocket expenses for forwarding proxy solicitation materials to our stockholders.

2

PROPOSAL NO. 1

ELECTION OF DIRECTORS

Background

The Board of Directors currently consists of five directors. Our bylaws provide for a minimum of one and a maximum of 15 directors and that our directors each serve a term of one year, but may be re-elected. The Board of Directors, acting in its capacity as the Nominating and Governance Committee, has nominated Stanley J. Olander, Jr., Glenn W. Bunting, Jr., Robert A. Gary, IV, W. Brand Inlow and Scott D. Peters for a term of office commencing on the date of the 2007 annual meeting and ending on the date of the 2008 annual meeting. Each of the nominees currently serves as a member of the Board of Directors.

Unless otherwise instructed on the proxy, the shares represented by proxies will be voted FOR the election of all of the director nominees named below. Each of the nominees has consented to being named as a nominee in this proxy statement and has agreed that, if elected, he will serve on the Board of Directors for a one-year term and until his successor has been elected and qualified. If any nominee becomes unavailable for any reason, the shares represented by proxies may be voted for a substitute nominee designated by the Board of Directors. We are not aware of any family relationship among any of the nominees to become directors or executive officers of NNN Apartment REIT. Each of the nominees for election as director has stated that there is no arrangement or understanding of any kind between him and any other person relating to his election as a director except that such nominees have agreed to serve as our directors if elected.

Information about Director Nominees:

Stanley J. (“Jay”) Olander, Jr., age 52, has been the Chief Executive Officer and a director of our company and the Chief Executive Officer of NNN Apartment REIT Advisor, LLC, or our Advisor, since their formation. Since December 2006 and April 2007, he has also served as the Chairman of our Board of Directors and our President, respectively. Mr. Olander has also been a managing member of ROC REIT Advisors, LLC since 2006 and a managing member of ROC Realty Advisors, LLC since 2005. He served as President and Chief Financial Officer and a member of the board of directors of Cornerstone Realty Income Trust, Inc., or Cornerstone, from 1996 until April 2005. Prior to the sale of Cornerstone in April 2005, the company’s shares were listed on the New York Stock Exchange, and it owned approximately 23,000 apartment units in five states and had a total market capitalization of approximately $1.5 billion. Mr. Olander has been responsible for the acquisition and financing of approximately 40,000 apartment units. He holds a B.A. degree in Business Administration from Radford University in Virginia and an M.A. degree in Real Estate and Urban Land Development from Virginia Commonwealth University.

Glenn W. Bunting, Jr., age 62, has been an independent director of our company since its formation. He has been President of American KB Properties, Inc., which develops and manages shopping centers, since 1985. He has been President of G. B. Realty Corporation, which brokers shopping centers and apartment communities, since 1980. Mr. Bunting is a current director of Apple Hospitality Two, Inc., Apple Hospitality Five, Inc., and Apple REIT Seven, Inc., and a former director of Cornerstone. Mr. Bunting holds a B.S. degree in Business Administration from Campbell University in North Carolina.

Robert A. Gary, IV, age 53, has been an independent director of our company since its formation. Mr. Gary co-founded Keiter, Stephens, Hurst, Gary and Shreaves, which is an independent certified public accounting firm based in Richmond, Virginia, in 1978, where he has worked since its formation. His accounting practice focuses on general business consulting, employee benefits and executive compensation, and estate planning and administration. Mr. Gary is a former director of Cornerstone. He holds a B.S. degree in Accounting from Wake Forest University in North Carolina and an M.B.A. degree from the University of Virginia’s Darden School. He is a member of the American Institute of Certified Public Accountants and the Virginia Society of Certified Public Accountants.

W. Brand Inlow, age 53, has been an independent director of our company since its formation. He is a Principal, co-founder, and serves as Director of Acquisitions for McCann Realty Partners, LLC, an apartment

3

investment company focusing on garden apartment communities in the southeast formed in October 2004. Since November 2003, Mr. Inlow has provided professional consulting services to the multifamily industry on matters related to acquisitions, dispositions, asset management and property management operations, and through an affiliation with LAS Realty in Richmond, Virginia, conducts commercial real estate brokerage. Mr. Inlow also is President of Jessie’s Wish, Inc., a Virginia non-profit corporation dedicated to awareness, education and financial assistance for patients and families dealing with eating disorders. Mr. Inlow served as President of Summit Realty Group, Inc. in Richmond, Virginia, from September 2001 through November 2003. Prior to joining Summit Realty Group, Inc., from December 1999 to August 2001, he was Vice President of Acquisitions for EEA Realty, LLC in Alexandria, Virginia, where he was responsible for acquisition, disposition, and financing of company assets, which were primarily garden apartment properties. Prior to joining EEA Realty, from December 1992 to November 1999, Mr. Inlow worked for United Dominion Realty Trust, Inc., a publicly traded REIT, as Assistant Vice President and Senior Acquisition Analyst, where he was responsible for the acquisition of garden apartment communities. Mr. Inlow has also served as a director of G REIT, Inc. and T REIT, Inc. since 2003.

Scott D. Peters, age 49, has been a director of our company since April 2007. He has also served as our Executive Vice President since formation and also served as our Chief Financial Officer from formation through April 2006. Mr. Peters has also served as the Executive Vice President and Chief Financial Officer of our Advisor. He has also served as the Chief Executive Officer, President and a director of NNN Realty Advisors, Inc., or NNN Realty Advisors, or our Sponsor, since its formation in September 2006 and as the Chief Executive Officer of Triple Net Properties, LLC, or Triple Net Properties, the managing member of our Advisor, since November 2006. From September 2004 to October 2006, Mr. Peters served as the Executive Vice President and Chief Financial Officer of Triple Net Properties. Since December 2005, Mr. Peters has also served as the Chief Executive Officer and President of G REIT, Inc., having previously served as its Executive Vice President and Chief Financial Officer since September 2004. Mr. Peters has also served as the Executive Vice President and Chief Financial Officer of T REIT, Inc. from September 2004 to December 2006 and the Chairman and Chief Executive Officer of NNN Healthcare/Office REIT, Inc. since April 2006. From February 1997 to February 2007, Mr. Peters served as Senior Vice President, Chief Financial Officer and a director of Golf Trust of America, Inc., a publicly traded real estate investment trust. Mr. Peters received his B.B.A. degree in Accounting and Finance from Kent State University in Ohio.

The Board of Directors recommends a vote FOR all of the nominees for election as directors.

EXECUTIVE OFFICERS

Information regarding our executive officers is set forth below:

For biographical information regarding Mr. Olander, our Chief Executive Officer, President and Chairman, and Mr. Peters, our Executive Vice President see — “Information about Director Nominees” above.

David L. Carneal, age 43, has been the Executive Vice President and Chief Operating Officer of our company and our Advisor since their formation. Mr. Carneal has also been a managing member of ROC REIT Advisors, LLC since 2006 and a managing member of ROC Realty Advisors, LLC since 2005. From 1998 to 2003, Mr. Carneal served as Senior Vice President of Operations of Cornerstone and from 2003 to 2005, served as Executive Vice President and Chief Operating Officer. Mr. Carneal was responsible for overseeing the property management operations of approximately 23,000 apartment units. Prior to joining Cornerstone, Mr. Carneal held management and development positions with several other multifamily property management companies including Trammell Crow Residential. Mr. Carneal holds a B.A. degree in History and Government with a minor in Economics from the University of Virginia.

Gus G. Remppies, age 46, has been the Executive Vice President and Chief Investment Officer of our company and our Advisor since their formation. Mr. Remppies has also been a managing member of ROC REIT Advisors, LLC since 2006 and a managing member of ROC Realty Advisors, LLC since 2005. From 1995 to 2003, Mr. Remppies served as Senior Vice President of Acquisitions of Cornerstone and from 2003 to 2005, served as Executive Vice President and Chief Investment Officer. As such, he was responsible for all

4

acquisitions, dispositions, financing and development for Cornerstone. During this tenure, Mr. Remppies oversaw the acquisition and development of approximately 30,000 apartment units. In addition, he oversaw the placement of over $500 million in debt, both secured and unsecured, with a variety of lenders. He is a graduate of the University of Richmond in Virginia, where he received his degree in Business Administration.

Shannon K S Johnson, age 29, has served as the Chief Financial Officer of our company since April 2006. Ms. Johnson has also served as a financial reporting manager for Triple Net Properties since January 2006 and has served as the Chief Financial Officer of NNN Healthcare/Office REIT, Inc. since August 2006. From June 2002 to January 2006, Ms. Johnson gained public accounting and auditing experience while employed as an auditor with PricewaterhouseCoopers LLP. Prior to joining PricewaterhouseCoopers LLP, from September 1999 to June 2002, Ms. Johnson worked as an auditor with Arthur Andersen LLP, where she worked on the audits of a variety of public and private entities. Ms. Johnson is a certified public accountant and graduated summa cum laude with her B.A. degree in Business-Economics and a minor in Accounting from the University of California, Los Angeles.

Andrea R. Biller, age 57, has been the Secretary of our company since December 2005 and the General Counsel of our Advisor since its formation in December 2005. She has also served as the General Counsel, Executive Vice President and Secretary of NNN Realty Advisors since its formation in September 2006. She has served as General Counsel for Triple Net Properties since March 2003 and as Executive Vice President since January 2007. Ms. Biller has also served as the Secretary and Executive Vice President of G REIT, Inc. since June 2004 and December 2005, respectively, the Secretary of T REIT, Inc. since May 2004 and the Executive Vice President and Secretary of NNN Healthcare/Office REIT, Inc. since April 2006. Ms. Biller practiced as a private attorney specializing in securities and corporate law from 1990 to 1995 and 2000 to 2002. She practiced at the Securities and Exchange Commission, or SEC, from 1995 to 2000, including two years as special counsel for the Division of Corporation Finance. Ms. Biller earned a B.A. degree in Psychology from Washington University, an M.A. degree in Psychology from Glassboro State University in New Jersey and a J.D. degree from George Mason University School of Law in Virginia in 1990, where she graduated with distinction. Ms. Biller is a member of the California, Virginia and the District of Columbia State Bar Associations.

CORPORATE GOVERNANCE

Board of Directors

The Board of Directors held six meetings during the fiscal year ended December 31, 2006. Each of our directors attended at least 75% of the aggregate of the total number of meetings of the Board of Directors held during the period for which he served as a director and the total number of meetings held by all committees of the Board of Directors on which he served during the periods in which he served.

Director Attendance at annual meetings

Although we have no policy with regard to attendance by the members of the Board of Directors at our annual meeting of stockholders, we invite and encourage the members of the Board of Directors to attend annual meetings to foster communication between stockholders and the Board of Directors.

Contacting the Board of Directors

Any stockholder who desires to contact members of the Board of Directors may do so by writing to: NNN Apartment REIT, Inc., the Board of Directors, 1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705, Attention: Secretary. Communications received will be distributed by our Secretary to such member or members of the Board of Directors as deemed appropriate by our Secretary, depending on the facts and circumstances outlined in the communication received. For example, if any questions regarding accounting, internal accounting controls and auditing matters are received, they will be forwarded by the Secretary to the Audit Committee for review.

5

Director Independence

We have a five-member Board of Directors. Two of our directors, Stanley J. Olander, Jr. and Scott D. Peters, are affiliated with us and we do not consider them to be independent directors. The three remaining directors qualify as “independent directors” as defined in our charter in compliance with the requirements of the North American Securities Administrators Association’s Statement of Policy Regarding Real Estate Investment Trusts. Our charter provides that a majority of the directors must be “independent directors.” As defined in our charter, the term “independent director” means a director who is not on the date of determination, and within the last two years from the date of determination has not been, directly or indirectly associated with NNN Realty Advisors, our Sponsor or our Advisor by virtue of (i) ownership of an interest in our Sponsor, our Advisor or any of their affiliates, other than the Corporation; (ii) employment by our Sponsor, our Advisor or any of their affiliates; (iii) service as an officer or director of our Sponsor, our Advisor or any of their affiliates; (iv) performance of services, other than as a director; (v) service as a director or trustee of more than three real estate investment trusts organized by our Sponsor or advised by our Advisor; or (vi) maintenance of a material business or professional relationship with our Sponsor, our Advisor or any of their affiliates.

Each of our independent directors would also qualify as independent under the rules of the New York Stock Exchange and our Audit Committee members would qualify as independent under the New York Stock Exchange’s rules applicable to Audit Committee members. However, we are not listed on the New York Stock Exchange.

Committees of the Board of Directors

We have three standing committees, the Audit Committee, the Executive Committee and the Acquisition Committee. From time to time the Board of Directors may establish certain other committees to facilitate the management of our company.

Audit Committee.  We have an Audit Committee which must be comprised of a minimum of three individuals, a majority of whom are independent directors. Currently the Audit Committee includes Messrs. Gary, Bunting, and Inlow, all of whom are independent directors. Mr. Gary is designated as the Audit Committee financial expert. The Audit Committee:

•  makes recommendations to our Board of Directors concerning the engagement of independent public accountants;

•  reviews the plans and results of the audit engagement with the independent public accountants;

•  approves professional services provided by, and the independence of, the independent public accountants;

•  considers the range of audit and non-audit fees; and

•  consults with the independent public accountants regarding the adequacy of our internal accounting controls.

Executive Committee.  In March 2007, we established an Executive Committee that is entitled to exercise all of the powers of the Board of Directors, except for those prohibited by law. The Executive Committee currently consists of Messrs. Olander, Gary, Bunting, Inlow and Peters. Mr. Olander serves as the Chairman of the Executive Committee.

Acquisition Committee.  Each of our acquisitions must be approved by the Acquisition Committee or a majority of our Board of Directors, including a majority of the independent directors, as being fair and reasonable to our company and consistent with our investment objectives. Initially, the Acquisition Committee will be comprised of all members of our Board of Directors. Our Advisor will recommend suitable properties for consideration by the Acquisition Committee. If the members of the Acquisition Committee approve a given acquisition, then our Advisor will be directed to acquire the property on our behalf, if such acquisition can be completed on terms approved by the committee. Properties may be acquired from our Advisor or its

6

affiliates or our officers and directors, provided that a majority of our Board of Directors, including a majority of the independent directors, not otherwise interested in the transaction approve the transaction as being fair and reasonable to our company and at a price to our company no greater than the cost of the property to the affiliate, unless substantial justification exists for a price in excess of the cost to the affiliate and the excess is reasonable.

Executive Compensation Committee.  We currently do not have, but we anticipate in the future that we will have, an Executive Compensation Committee comprised of a minimum of three directors, including at least two independent directors, to establish compensation policies and programs for our directors and executive officers. However, at a later date, the Executive Compensation Committee may exercise all powers of our Board of Directors in connection with establishing and implementing compensation matters. Stock-based compensation plans will be administered by the Board of Directors if the members of the Executive Compensation Committee do not qualify as “non-employee directors” within the meaning of the Securities Exchange Act of 1934.

Nominating and Corporate Governance Committee.  We do not have a separate Nominating and Corporate Governance Committee. We believe that our Board of Directors is qualified to perform the functions typically delegated to a Nominating and Corporate Governance Committee and that the formation of a separate committee is not necessary at this time. Instead, the full Board of Directors performs functions similar to those which might otherwise normally be delegated to such a committee, including, among other things, developing a set of corporate governance principles, adopting a code of ethics, adopting policies with respect to conflicts of interest, monitoring our compliance with corporate governance requirements of state and federal law, establishing criteria for prospective members of the Board of Directors, conducting candidate searches and interviews, overseeing and evaluating the Board of Directors and our management, evaluating from time to time the appropriate size and composition of the Board of Directors and recommending, as appropriate, increases, decreases and changes to the composition of the Board of Directors and formally proposing the slate of directors to be elected at each annual meeting of our stockholders.

The Board of Directors will consider nominees for our Board of Directors recommended by stockholders. Notice of proposed stockholder nominations for director must be delivered not less than 120 days prior to any meeting at which directors are to be elected. Nominations must include the full name of the proposed nominee, a brief description of the proposed nominee’s business experience for at least the previous five years and a representation that the nominating stockholder is a beneficial or record owner of our common stock. Any such submission must be accompanied by the written consent of the proposed nominee to be named as a nominee and to serve as a director if elected. Nominations should be delivered to: NNN Apartment REIT, Inc., the Board of Directors, 1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705, Attention: Secretary.

In considering possible candidates for election as a director, the Board of Directors is guided by the principle that each director should (i) be an individual of high character and integrity; (ii) be accomplished in his or her respective field, with superior credentials and recognition; (iii) have relevant expertise and experience upon which to be able to offer advice and guidance to management; (iv) have sufficient time available to devote to our affairs; (v) represent the long-term interests of our stockholders as a whole; and (vi) represent a diversity of background and experience.

Qualified candidates for membership on the Board of Directors will be considered without regard to race, color, religion, gender, ancestry, national origin or disability. The Board of Directors will review the qualifications and backgrounds of directors and nominees (without regard to whether a nominee has been recommended by stockholders), as well as the overall composition of the Board, and recommend the slate of directors to be nominated for election at the annual meeting of stockholders. We do not currently employ or pay a fee to any third party to identify or evaluate, or assist in identifying or evaluating, potential director nominees.

7

COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS

Executive Compensation

We have no employees. Our day-to-day management functions are performed by employees of our Advisor and its affiliates. The individuals who serve as our executive officers do not receive compensation directly from us for services rendered to us, and we do not currently intend to pay any compensation directly to our executive officers.

As a result, we do not have, and our Board of Directors has not considered, a compensation policy or program for our executive officers.

Each of our executive officers, including those officers who serve as directors, is employed by our Advisor or its affiliates, and is compensated by these entities for their services to us. We pay these entities fees and reimburse expenses pursuant to an advisory agreement between us and our Advisor, or the Advisory Agreement.

Option/SAR Grants in Last Fiscal Year

No option/SAR grants were made to officers and directors for the year ended December 31, 2006.

Director Compensation

Pursuant to the terms of our director compensation program, which are contained in our 2006 Incentive Award Plan, our independent directors receive the following forms of compensation:

•  Annual Retainer. Our independent directors receive an annual retainer of $15,000.

•  Meeting Fees. Our independent directors receive $1,000 for each board meeting and Executive Committee meeting attended in person or by telephone, and $500 for each committee meeting, other than an Executive Committee meeting, attended in person or by telephone, and an additional $2,000 to the Audit Committee chair for each Audit Committee meeting attended in person or by telephone. If a board meeting is held on the same day as a committee meeting, an additional fee will not be paid for attending the committee meeting, except to the Audit Committee Chairman.

•  Equity Compensation. Upon initial election to the board, each independent director receives 1,000 shares of restricted common stock, and an additional 1,000 shares of restricted common stock upon his or her subsequent election each year. The restricted shares will vest as to 20.0% of the shares on the date of grant and on each anniversary thereafter over four years from the date of grant.

•  Other Compensation. We reimburse our directors for reasonable out-of-pocket expenses incurred in connection with attendance at meetings, including committee meetings, of the Board of Directors. Independent directors do not receive other benefits from us.

Our non-independent directors do not receive any compensation from us.

8

The following table sets forth the compensation earned by our directors from us in 2006:

									Change in
									Pension Value
									and
							Non-Equity		Nonqualified
	Fees Earned		Stock		Option		Incentive Plan		Deferred		All Other
	or Paid in		Awards		Awards		Compensation		Compensation		Compensation		Total
	Cash ($)		($)		($)		($)		Earnings ($)		($)		($)
Name (a)	(b)(1)		(c)(2)		(d)		(e)		(f)		(g)		(h)
Stanley J. Olander, Jr.(3)	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Glenn W. Bunting, Jr.	$	13,667	$	2,890	$	—	$	—	$	—	$	—	$	16,557
Robert A. Gary, IV	$	17,667	$	2,890	$	—	$	—	$	—	$	—	$	20,557
W. Brand Inlow	$	12,667	$	2,890	$	—	$	—	$	—	$	—	$	15,557
D. Fleet Wallace(4)	$	9,431	$	2,000	$	—	$	—	$	—	$	—	$	11,431
Louis J. Rogers(3)	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Scott D. Peters(5)	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1) Consists of the amounts described below.

		Basic Annual
		Retainer		Meeting Fees
Director	Role	($)		($)
Olander(3)	Chairman of the Board	$	—	$	—
Bunting	Member, Audit Committee	$	6,667	$	7,000
Gary	Chairman, Audit Committee	$	6,667	$	11,000
Inlow	Member, Audit Committee	$	6,667	$	6,000
Wallace	Member, Audit Committee	$	4,931	$	4,500
Rogers(3)	Director	$	—	$	—
Peters(5)	Member	$	—	$	—

(2) The amounts in this column represent the proportionate amount of the total fair value of stock awards recognized by the Company in 2006 for financial accounting purposes, disregarding for this purpose the estimate of forfeitures related to service-based vesting conditions. The amounts included in the table for each award include the amount recorded as expense in our statement of operations for the period from January 10, 2006 (Date of Inception) through December 31, 2006. The fair values of these awards and the amounts expensed in 2006 were determined in accordance with Statement of Financial Accounting Standards, or SFAS, No. 123(R), Share-Based Payment, or SFAS No. 123(R).

9

The following table shows the shares of restricted common stock awarded to each independent director during 2006, and the aggregate grant date fair value for each award (computed in accordance with SFAS No. 123(R)).

			Number of		Full Grant Date
			Restricted		Fair Value of
			Shares		Award
Director	Grant Date		(#)		($)
Olander(3)		—		—	$	—
Bunting		7/19/06		1,000	$	10,000
Gary		7/19/06		1,000	$	10,000
Inlow		7/19/06		1,000	$	10,000
Wallace		7/19/06		1,000	$	10,000
Rogers(3)		—		—	$	—
Peters(5)		—		—	$	—

The following table shows the aggregate numbers of nonvested restricted shares of common stock held by each director as of December 31, 2006:

Director	Nonvested Restricted Stock
Olander(3)		—
Bunting		800
Gary		800
Inlow		800
Wallace(4)		—
Rogers(3)		—
Peters(5)		—

(3)	Mr. Olander and Mr. Rogers are not independent directors and did not receive any compensation from us as directors.
(4)	Effective November 16, 2006, D. Fleet Wallace resigned from our Board of Directors.
(5)	Mr. Peters was appointed to serve as a non-independent director on April 12, 2007. As a non-independent director, Mr. Peters does not receive any compensation from us.

2006 Incentive Award Plan

The shares of stock subject to the 2006 Incentive Award Plan will be our common stock. Under the terms of the 2006 Incentive Award Plan, the aggregate number of shares of our common stock subject to options, restricted stock awards, stock purchase rights, stock appreciation rights, or SARs, and other awards will be no more than 2,000,000 shares, subject to adjustment under specified circumstances.

The maximum number of shares which may be subject to options, stock purchase rights, SARs and other awards granted under the 2006 Incentive Award Plan to any individual in any calendar year may not exceed 250,000 shares. In addition, the maximum amount of cash that may be paid as a cash bonus to any individual in any calendar year is $1,000,000.

The Board of Directors, or a committee of the Board of Directors, will be the administrator of the 2006 Incentive Award Plan. The 2006 Incentive Award Plan provides that the administrator may grant or issue stock

10

options, SARs, restricted stock, deferred stock, dividend equivalents, performance awards and stock payments, or any combination thereof. Each award will be set forth in a separate agreement with the person receiving the award and will indicate the type, terms and conditions of the award.

Our officers, employees, consultants and non-officer directors, as well as key employees of our Advisor and its managing member, are eligible to receive awards under the 2006 Incentive Award Plan. The administrator determines which of our officers, employees, consultants, non-officer directors and key employees of our Advisor and its managing member will be granted awards.

Amendment and Termination of the 2006 Incentive Award Plan

The Board of Directors may not, without stockholder approval given within 12 months of the Board of Directors’ action, amend the 2006 Incentive Award Plan to increase the number of shares of our common stock that may be issued under the 2006 Incentive Award Plan.

The Board of Directors may terminate the 2006 Incentive Award Plan at any time. The 2006 Incentive Award Plan will be in effect until terminated by the Board of Directors. However, in no event may any award be granted under the 2006 Incentive Award Plan after ten years following the 2006 Incentive Award Plan’s effective date, July 19, 2006. Except as indicated above, the Board of Directors may modify the 2006 Incentive Award Plan from time to time.

EQUITY COMPENSATION PLAN INFORMATION

			Weighted Average
	Number of Securities to be Issued		Exercise Price of		Number of Securities
	Upon Exercise of Outstanding		Outstanding Options,		Remaining Available for
Plan Category	Options, Warrants and Rights		Warrants and Rights		Future Issuance
Equity compensation plans approved by security holders(1)		—		—		1,996,000
Equity compensation plans not approved by security holders		—		—		—
Total		—		—		1,996,000

(1) On July 19, 2006, we granted 4,000 shares of restricted common stock, as defined in the 2006 Incentive Award Plan, to our independent directors. Such shares are not shown in the chart above as they are deemed outstanding shares of our common stock; however such grants reduce the number of securities remaining available for future issuance.

11

PRINCIPAL STOCKHOLDERS

The following table shows, as of April 12, 2007, the amount of shares of our common stock beneficially owned by (1) any person who is known by us to be the beneficial owner of more than 5.0% of the outstanding shares of our common stock; (2) our directors; (3) our chief executive officer and (4) all of our directors and executive officers as a group. The percentage of common stock beneficially owned is based on 3,392,265 shares of our common stock outstanding as of April 12, 2007. Beneficial ownership is determined in accordance with the rules of the SEC and generally includes securities over which a person has voting or investment power and securities that a person has the right to acquire within 60 days.

	Number of
	Shares of
	Common Stock		Percent
	Beneficially		of
Name of Beneficial Owners(1)	Owned		Class
Stanley J. Olander, Jr.(2)		22,223		*
Glenn W. Bunting, Jr.(3)		1,026		*
Robert A. Gary, IV(3)		1,000		*
W. Brand Inlow(3)		1,000		*
Louis J. Rogers		1,105		*
Scott D. Peters(4)		—		—
All directors and executive officers as a group (10 persons)		26,354		*

*	Represents less than 1.0% of our outstanding common stock.
(1)	The address of each beneficial owner listed is c/o NNN Apartment REIT, Inc., 1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705.
(2)	Includes 22,223 shares of our common stock owned by our Advisor. Stanley J. Olander, Jr. is the Chief Executive Officer of our Advisor. Our Advisor also owns 100 units of NNN Apartment REIT Holdings, L.P., or our Operating Partnership.
(3)	Includes vested and non-vested restricted shares of common stock.
(4)	Mr. Peters was appointed to serve as a non-independent director on April 12, 2007.

Section 16(a) Beneficial Ownership Reporting Compliance

Our executive officers, directors and greater than 10% stockholders are not currently subject to the beneficial ownership reporting requirements pursuant to Section 16(a) of the Exchange Act, and therefore no reports were filed in 2006 pursuant to Section 16(a).

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

Relationships Among Our Affiliates

Some of our executive officers and our non-independent directors are also executive officers and/or holders of direct or indirect interests in our Advisor, NNN Realty Advisors, or other affiliated entities.

Triple Net Properties owns a 50.0% managing member interest in our Advisor. NNN Apartment Management, LLC owns a 25.0% non-managing member interest in our Advisor. The members of NNN Apartment Management, LLC include Louis J. Rogers, our director; Scott D. Peters, our Executive Vice President and our Advisor’s Executive Vice President and Chief Financial Officer; Andrea R. Biller, our Secretary and our Advisor’s General Counsel; and Triple Net Properties for the benefit of other employees who perform services for us. Each of Mr. Peters, Mr. Rogers and Ms. Biller own 18.0% membership interests in NNN Apartment Management, LLC. However, NNN Apartment Management, LLC intends to redeem Mr. Rogers’ membership interests in connection with his termination as our President, President of our

12

Advisor and President of Triple Net Properties, LLC. Triple Net Properties owns a 46.0% membership interest in NNN Apartment Management, LLC. Anthony W. Thompson, the Chairman of the board of directors of our Sponsor, is a special member of NNN Apartment Management, LLC and may receive compensation of up to $175,000 annually.

ROC REIT Advisors, LLC owns a 25.0% non-managing member interest in our Advisor. The members of ROC REIT Advisors, LLC are Stanley J. Olander, Jr., our Chief Executive Officer, President and Chairman of our Board of Directors and our Advisor’s Chief Executive Officer; Gus G. Remppies, our Executive Vice President and Chief Investment Officer and our Advisor’s Executive Vice President and Chief Investment Officer; and David L. Carneal, our Executive Vice President and Chief Operating Officer and our Advisor’s Executive Vice President and Chief Operating Officer. Each of Mr. Olander, Mr. Remppies and Mr. Carneal own 33.3% membership interests in ROC REIT Advisors, LLC. Additionally, each of Mr. Olander, Mr. Remppies and Mr. Carneal own 33.3% membership interests in ROC Realty Advisors, LLC, an entity that owns 50.0% of the membership interests in NNN/ROC Apartment Holdings, LLC. NNN/ROC Apartment Holdings, LLC owns several entities that master lease properties sponsored by Triple Net Properties and earns fees as a result of property acquisitions by programs sponsored by Triple Net Properties, other than us.

Fees and Expenses Paid to Affiliates

Upon the effectiveness of our initial public offering, we entered into the Advisory Agreement and a dealer manager agreement, or the Dealer Manager Agreement, with our Dealer Manager. These agreements entitle our Advisor, our Dealer Manager and their affiliates to specified compensation for certain services with regards to our Offering and the investment of funds in real estate assets, among other services, as well as reimbursement of organizational and Offering expenses incurred.

Offering Stage

Selling Commissions

Our Dealer Manager will receive selling commissions up to 7.0% of the gross Offering proceeds from the sale of shares of our common stock in our Offering. Our Dealer Manager may re-allow all or a portion of these fees up to 7.0% to participating broker-dealers. We incurred $1,141,000 to our Dealer Manager for selling commissions for the period from January 10, 2006 (Date of Inception) through December 31, 2006. Such commissions are charged to stockholders’ equity as such amounts are reimbursed to our Dealer Manager from the gross proceeds of our Offering.

Marketing Support Fee and Due Diligence Expense Reimbursements

Our Dealer Manager may receive non-accountable marketing support fees and due diligence expense reimbursements up to 2.5% of the gross Offering proceeds from the sale of shares of our common stock in our Offering. Our Dealer Manager may re-allow up to 1.5% of these fees to participating broker-dealers. In addition, we may reimburse our Dealer Manager or its affiliates an additional accountable 0.5% of gross Offering proceeds from the sale of shares of our common stock in our Offering, reimbursements for bona fide due diligence expenses. Our Dealer Manager or its affiliates may re-allow up to 0.5% of these fees to participating broker-dealers. We incurred $494,000 to our Dealer Manager or its affiliates for marketing support fees and due diligence expense reimbursements for the period from January 10, 2006 (Date of Inception) through December 31, 2006. Such fees and reimbursements are charged to stockholders’ equity as such amounts are reimbursed to our Dealer Manager or its affiliates from the gross proceeds of our Offering.

Other Organizational and Offering Expenses

Our organizational and Offering expenses are paid by our Advisor or Triple Net Properties on our behalf. Our Advisor or Triple Net Properties may be reimbursed for actual expenses incurred for up to 1.5% of the gross Offering proceeds for the shares sold under our Offering. We incurred $249,000 to our Advisor or Triple Net Properties for the period from January 10, 2006 (Date of Inception) through December 31, 2006 for other organizational and Offering expenses. Other organizational expenses are expensed as incurred, and Offering

13

expenses are charged to stockholders’ equity as such amounts are reimbursed to our Advisor or Triple Net Properties from the gross proceeds of our Offering.

Acquisition and Development Stage

Acquisition Fees

Our Advisor or its affiliates will receive, as compensation for services rendered in connection with the investigation, selection and acquisition of properties, an acquisition fee up to 3.0% of the contract purchase price for each property acquired or up to 4.0% of the total development cost of any development property acquired, as applicable. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we incurred $1,884,000 in acquisition fees to our Advisor or its affiliates.

Reimbursement of Acquisition Expenses

Our Advisor or its affiliates will be reimbursed for acquisition expenses related to selecting, evaluating, acquiring and investing in properties, which will not exceed 0.5% of the purchase price of the properties. The reimbursement of acquisition expenses, acquisition fees, and real estate commissions paid to unaffiliated parties, will not exceed, in the aggregate, 6.0% of the purchase price or total development costs, unless fees in excess of such limits are approved by a majority of our disinterested independent directors. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we did not incur such expenses.

Operational Stage

Asset Management Fee

Our Advisor or its affiliates will be paid a monthly fee for services rendered in connection with the management of our assets in an amount equal to one-twelfth of 1.0% of the average invested assets calculated as of the close of business on the last day of each month, subject to our stockholders receiving annualized distributions in an amount equal to at least 5.0% per annum on average invested capital. The asset management fee is calculated and payable monthly in cash or shares of our common stock, at the option of our Advisor, not to exceed one-twelfth of 1.0% of our average invested assets as of the last day of the immediately preceding quarter. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we did not incur such a fee as we had no assets until October 31, 2006.

Property Management Fees

Our Advisor or its affiliates will be paid a property management fee equal to 4.0% of the monthly gross income from any properties either manages. This fee will be paid monthly. Our Advisor or its affiliates anticipate that they will subcontract property management services to third parties and will be responsible for paying all fees due such third party contractors. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we incurred $24,000 to our Advisor or its affiliates, of which $21,000 was incurred to third parties.

Operating Expenses

Our Advisor or its affiliates will be reimbursed for expenses incurred in rendering its services, subject to certain limitations. Fees and costs reimbursed to our Advisor or its affiliates cannot exceed the greater of: (1) 2.0% of our average invested assets, as defined in the Advisory Agreement, or (2) 25.0% of our net income, as defined in the Advisory Agreement. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we incurred $325,000 payable to our Advisor and Triple Net Properties for such expenses. As of December 31, 2006, we had not reimbursed our Advisor or Triple Net Properties for such expenses.

14

Compensation for Additional Services

Our Advisor or its affiliates will be paid for services performed for us other than those required to be rendered by our Advisor or its affiliates, under the Advisory Agreement. The rate of compensation for these services must be approved by a majority of our Board of Directors, and cannot exceed an amount that would be paid to unaffiliated third parties for similar services. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we did not incur such expenses.

Liquidity Stage

Disposition Fees

Our Advisor or its affiliates will be paid, for a substantial amount of services relating to a sale of one or more properties, a disposition fee up to the lesser of 1.75% of the contract sales price or 50.0% of a customary competitive real estate commission given the circumstances surrounding the sale and will not exceed market norms. The amount of disposition fees paid, including the real estate commissions paid to unaffiliated parties, will not exceed the lesser of the customary competitive disposition fee or an amount equal to 6.0% of the contract sales price. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we did not incur such fees.

Incentive Distribution Upon Sales

Upon liquidation our Advisor will be paid an incentive distribution equal to 15.0% of net sales proceeds from any disposition of property after subtracting (a) the amount of capital we invested in our Operating Partnership; (b) an amount equal to an 8.0% annual cumulative, non-compounded return on such invested capital; and (c) any shortfall with respect to the overall 8.0% annual cumulative, non-compounded return on the capital invested in our Operating Partnership. Actual amounts to be received depend on the sale prices of properties upon liquidation. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we did not incur such distributions.

Incentive Distribution Upon Listing

Upon the listing of shares of our common stock on a national securities exchange, our Advisor will be paid an incentive distribution equal to 15.0% of the amount, if any, by which the market value of our outstanding stock plus distributions paid by us prior to listing, exceeds the sum of the amount of capital we invested in our Operating Partnership plus an 8.0% annual cumulative, non-compounded return on such invested capital. Actual amounts to be received depend upon the market value of our outstanding stock at the time of listing among other factors. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we did not incur such distributions.

Fees Payable upon Termination of Advisory Agreement

Upon termination of the Advisory Agreement due to an internalization of our Advisor in connection with our conversion to a self-administered REIT, our Advisor will be paid a fee determined by negotiation between our Advisor and our independent directors. Upon our Advisor’s receipt of such compensation, our Advisor’s special limited partnership units will be redeemed and our Advisor will not be entitled to receive any further incentive distributions upon sale of our properties. For the period from January 10, 2006 (Date of Inception) through December 31, 2006, we did not incur such fees.

Accounts Payable Due to Affiliates

As of December 31, 2006, $325,000, $53,000 and $18,000 was payable to Triple Net Properties for operating expenses, Offering costs and due diligence reimbursements, respectively.

As of December 31, 2006, $94,000 was payable to NNN Capital Corp. for the reimbursement of selling commissions.

15

As of December 31, 2006, $961,000 was payable to Triple Net Properties Realty, Inc. and our Advisor for acquisition fees.

Unsecured Note Payable to Affiliate

On December 28, 2006, we issued an unsecured note to NNN Realty Advisors, evidenced by an unsecured promissory note in the principal amount of $10,000,000. The unsecured note matures on June 28, 2007. The unsecured note bears interest at a fixed rate of 6.86% per annum and requires monthly interest only payments beginning on February 1, 2007 for the term of the unsecured note. The unsecured note provides for a default interest rate in an event of default equal to 8.86% per annum. Because this loan is a related party loan, the terms of the loan and the unsecured note, were approved by our Board of Directors, including the majority of our independent directors, and deemed fair, competitive and commercially reasonable by our Board of Directors.

Director and Former President’s Financial Arrangement with Legal Counsel

The law firm of Hirschler Fleischer, a Professional Corporation, or Hirschler Fleischer, represented NNN Apartment REIT, Inc. in certain legal matters during 2006. For the year ended December 31, 2006, we, or our affiliates on our behalf, incurred legal fees to Hirschler Fleischer of approximately $312,000. Louis J. Rogers, one of our directors, our President and the Chairman of our Advisor from inception through April 6, 2007, the President of Triple Net Properties from September 2004 through April 3, 2007 and a director of NNN Realty Advisors, also practiced law with Hirschler Fleischer from 1987 to March 2007. Mr. Rogers was a shareholder of Hirschler Fleischer from 1994 to December 31, 2004, and served as senior counsel in that firm from January 2005 to March 2007. We previously disclosed in the prospectus for our Offering that Mr. Rogers shared in Hirschler Fleischer’s revenues. On March 19, 2007, we learned that, in connection with his transition from shareholder to senior counsel, Mr. Rogers and Hirschler Fleischer entered into a transition agreement on December 29, 2004.

The transition agreement provided, among other things, that Mr. Rogers would receive a base salary from Hirschler Fleischer as follows: $450,000 in 2005, $400,000 in 2006, $300,000 in 2007, and $125,000 in 2008 and subsequent years. Mr. Rogers’ receipt of the base salary was subject to satisfaction of certain conditions, including that Triple Net Properties, LLC, the managing member of our Advisor, and its affiliated companies, including us (collectively, the “Triple Net Group”), remain a client of Hirschler Fleischer and that collections by that firm from the Triple Net Group equaled at least $1,500,000 per year. If the fees collected by Hirschler Fleischer from the Triple Net Group were less than $1,500,000, Mr. Rogers’ base salary would be proportionately reduced. Under the transition agreement, Mr. Rogers was also entitled to receive a bonus from Hirschler Fleischer on a quarterly basis, equal to a percentage, declining from 5.0% to 1.0% during the term of the agreement, of all collections by that firm from specified pre-2005 clients (including the Triple Net Group) in excess of $3,000,000, as well as a percentage of all collections by that firm from new clients originated by Mr. Rogers, ranging from 6.0% to 3.0% depending on the year originated. For the year ended December 31, 2006, the Triple Net Group, incurred legal fees to Hirschler Fleischer of approximately $3,696,000, including legal fees that NNN Apartment REIT, Inc., or our affiliates on our behalf, incurred to Hirschler Fleischer of approximately $312,000. Under the transition agreement, Hirschler Fleischer paid Mr. Rogers $646,800 in base salary and bonus for 2006. Mr. Rogers’ senior counsel position with Hirschler Fleischer terminated on March 31, 2007, at which point Hirschler Fleischer had paid Mr. Rogers $75,000 for his 2007 services. Mr. Rogers will receive from Hirschler Fleischer an additional $450,000 in 2007 pursuant to a separation agreement in satisfaction of all amounts owed to him under the transition agreement.

Process for Resolution of Conflicting Opportunities

The Advisory Agreement gives us the first opportunity to buy Class A income-producing apartment properties placed under contract by our Advisor or its affiliates that satisfy our investment objectives, so long as our Board of Directors or appropriate acquisition committee votes to make the purchase within seven days of being offered such property by our Advisor. If our Board of Directors or appropriate acquisition committee

16

does not vote to make such purchase within seven days of being offered such property, our Advisor is free to offer such opportunity to any other affiliates or non-affiliates, as it so chooses.

The independent directors must, by majority vote, approve all actions by our Advisor or its affiliates that present potential conflicts with our company.

We believe that the above factors, including the obligations of our Advisor and its affiliates to present to us any Class A income-producing apartment property opportunities that satisfy our investment objectives, will help to lessen the competition or conflicts with respect to the acquisition of properties and other transactions which affect our interests.

Acquisitions and Leases of Property from Our Advisor, Directors, Officers and Affiliates

Although we do not currently intend to do so, we may acquire and lease properties from our Advisor, our directors or officers or their affiliates. The prices or rent we pay for such properties will not be the subject of arm’s-length negotiations. However, we will not acquire a property from our Advisor or any affiliate, including our officers and directors, unless a competent independent appraiser confirms that our purchase price is equal to or less than the property’s fair market value. Additionally, for any acquisition or lease of a property from one of those parties, our charter provides that a majority of our Board of Directors not otherwise interested in the transaction, including a majority of our independent directors, must determine that the transaction and the purchase price or rent are fair, reasonable and in our best interests and at a price to us no greater than the cost of the property to that party. If the price to us is in excess of that party’s cost, then a majority of the disinterested directors must determine that substantial justification for the excess exists and the excess is reasonable. We cannot absolutely assure that the price we pay for any such property will not, in fact, exceed that which would be paid by an unaffiliated purchaser. In no event, however, will the cost of a property to our company exceed such property’s current appraised value.

Sales and Leases of Property to Our Advisor, Directors, Officers and Affiliates

We may sell our properties to our Advisor, our directors or officers or their affiliates. The sales price we receive for such properties will not be the subject of arm’s-length negotiations. However, we will not sell a property to our Advisor or any affiliate, including our officers and directors, unless, as our charter provides, a majority of our Board of Directors not otherwise interested in the transaction, including a majority of our independent directors, determines that the transaction is fair, reasonable and in our best interests. Such a sale must also be supported by an independent appraisal prepared by an appraiser who is a member in good standing with the American Institute of Real Estate Appraisers or similar national organization selected by the independent directors. We do not intend to lease our properties to any of these parties.

Our Advisor May Have Conflicting Fiduciary Obligations in the Event Our Company Acquires Properties with Our Advisor’s Affiliates

Our Advisor may advise us to acquire an interest in a property through a joint venture arrangement with our Advisor’s affiliates. In such instance, our Advisor will have a fiduciary duty to our company, our stockholders and the affiliate participating in the joint venture arrangement. In addition, our charter provides that a majority of the independent directors not otherwise interested in the transaction must determine that the transaction is on terms and conditions no less favorable than from unaffiliated third parties and is fair and reasonable to our company.

Non-Arm’s-Length Agreements; Conflicts; Competition

The agreements and arrangements, including those relating to compensation, between our company, our Advisor and its affiliates are not the result of arm’s-length negotiations, but are expected to approximate the terms of arm’s-length transactions.

While our charter provides that we will not make loans to our Advisor or its affiliates, it provides we may borrow money from our Advisor or its affiliates for various business purposes, including working capital

17

requirements, but only if a majority of our Board of Directors , including a majority of the independent directors, approve the transaction as being fair, competitive, commercially reasonable and no less favorable to our company than loans between unaffiliated parties under the same circumstances.

Our Advisor and its affiliates are not prohibited from providing services to, and otherwise dealing or doing business with, persons who deal with us, although there are no present arrangements with respect to any such services. However, no rebates or give-ups may be received by our Advisor or its affiliates, nor may our Advisor or any such affiliates participate in any reciprocal business arrangements which would have the effect of circumventing any of the provisions of the Advisory Agreement.

PROPOSAL NO. 2

RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Our Audit Committee has selected Deloitte to be our independent registered public accounting firm for fiscal 2007. A representative of Deloitte is expected to be present at the annual meeting and will have an opportunity to make a statement if he or she so desires. The representative also will be available to respond to appropriate questions from the stockholders.

Although it is not required to do so, the Board of Directors is submitting the Audit Committee’s selection of our independent registered public accounting firm for ratification by the stockholders at the annual meeting in order to ascertain the view of the stockholders regarding such selection. The affirmative vote of the holders of a majority of votes cast on the proposal at the annual meeting will be required to approve this proposal.

The Board of Directors recommends a vote FOR ratification of the selection of Deloitte as our independent registered public accounting firm for 2007.

RELATIONSHIP WITH INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

AUDIT AND NON-AUDIT FEES

Deloitte has served as our independent auditors since January 6, 2006 and audited our consolidated financial statements as of December 31, 2006 and January 10, 2006 (Date of Inception) and for the period from January 10, 2006 (Date of Inception) through December 31, 2006.

The following table lists the fees for services rendered by our independent auditors for 2006:

Services	2006
Audit Fees(1)	$	99,000
Audit-Related Fees(2)		—
Tax Fees(3)		—
All Other Fees		—
Total	$	99,000

(1)	Audit fees billed in 2006 consisted of the audit of our annual consolidated financial statements, a review of our quarterly consolidated financial statements, and statutory and regulatory audits, consents and other services related to filings with the SEC.
(2)	Audit-related fees consist of financial accounting and reporting consultations.
(3)	Tax services consist of tax compliance and tax planning and advice.

18

The Audit Committee preapproves all auditing services and permitted non-audit services (including the fees and terms thereof) to be performed for us by our independent auditor, subject to the de minims exceptions for non-audit services described in Section 10a(i)(1)(b) of the Exchange Act and the rules and regulations of the SEC. The Audit Committee has approved Deloitte to perform the following non-audit services for us during 2007:

•  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.

Auditor Independence

The Audit Committee has considered whether the provision of the above noted services is compatible with maintaining the independence of our independent registered public accounting firm’s independence and has concluded that the provision of such services has not adversely affected the independent registered public accounting firm’s independence.

AUDIT COMMITTEE REPORT TO STOCKHOLDERS

The Audit Committee of the Board of Directors operates under a written charter adopted by the Board of Directors. The role of the Audit Committee is to oversee our financial reporting process on behalf of the Board of Directors. Our management has the primary responsibility for our financial statements as well as our financial reporting process, principles and internal controls. The independent registered public accounting firm is responsible for performing an audit of our financial statements and expressing an opinion as to the conformity of such financial statements with accounting principles generally accepted in the United States of America.

In this context, the Audit Committee has reviewed and discussed our audited financial statements as of and for the year ended December 31, 2006 with management and the independent registered public accounting firm. The Audit Committee has discussed with the independent registered public accounting firm the matters required to be discussed by the statement on Auditing Standards No. 61, as amended (Professional Standards), as currently in effect. In addition, the Audit Committee has received the written disclosures and the letter from the independent registered public accounting firm required by Independence Standards Board Standard No. 1 (Independence Discussions with Audit Committees), as currently in effect, and it has discussed their independence with us. The Audit Committee has also considered whether the independent registered public accounting firm’s provision of tax preparation, tax consulting services and other non-audit services to us is compatible with maintaining the independent registered public accounting firm’s independence.

Based on the reports and discussions described above, the Audit Committee recommended to the Board of Directors that the audited financial statements be included in our Annual Report on Form 10-K for the year ended December 31, 2006, which has been filed with the SEC.

Audit Committee:

Robert A. Gary, IV, Chairman

Glenn W. Bunting, Jr.

W. Brand Inlow

19

ANNUAL REPORT

Our Annual Report on Form 10-K for the fiscal year ended December 31, 2006 is being mailed to stockholders on or about April 27, 2007. Our Annual Report on Form 10-K is not incorporated in this proxy statement and is not deemed a part of the proxy soliciting material.

CODE OF BUSINESS CONDUCT AND ETHICS

We have adopted a Code of Business Conduct and Ethics, or the Code of Ethics, which contains general guidelines for conducting our business and is designed to help directors, employees and independent consultants resolve ethical issues in an increasingly complex business environment. The Code of Ethics applies to our Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer, Controller and persons performing similar functions and all members of our Board of Directors. The Code of Ethics covers topics including, but not limited to, conflicts of interest, confidentiality of information, and compliance with laws and regulations. Stockholders may request a copy of the Code of Ethics, which will be provided without charge, by writing to: NNN Apartment REIT, Inc., 1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705, Attention: Secretary.

PROPOSALS FOR 2008 ANNUAL MEETING

Under SEC regulations, any stockholder desiring to make a proposal to be acted upon at the 2008 annual meeting of stockholders must cause such proposal to be received at our principal executive offices located at 1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705, Attention: Secretary, no later than February 13, 2008, in order for the proposal to be considered for inclusion in our proxy statement for that meeting. Stockholders also must follow the procedures prescribed in SEC Rule 14a-8 promulgated under the Securities Exchange Act of 1934. We presently anticipate holding the 2008 annual meeting of stockholders in June 2008.

OTHER MATTERS

Mailing of Materials; Other Business

We will mail a proxy card together with this proxy statement to all stockholders of record at the close of business on April 27, 2007. The only business to come before the annual meeting of which management is aware is set forth in this proxy statement. If any other business does properly come before the annual meeting or any postponement or adjournment thereof, the proxy holders will vote in regard thereto according to their discretion insofar as such proxies are not limited to the contrary.

It is important that proxies be returned promptly. Therefore, stockholders are urged to date, sign and return the accompanying proxy card in the enclosed envelope or by fax to (212) 645-8046 or by telephone by dialing toll-free 1-866-888-4066 or by the Internet at https://www.proxyvotenow.com/aptre.

PROXY

Please Vote by June 11, 2007

The undersigned stockholder of NNN Apartment REIT, Inc., a Maryland corporation, hereby appoints Stanley J. Olander, Jr. and Andrea R. Biller and each of them as proxies for the undersigned with full power of substitution in each of them, to attend the Annual Meeting of our Stockholders to be held at Irvine Marriott, 18000 Von Karman Avenue, Irvine, California 92612, on June 12, 2007 at 9:00 a.m. local time and any and all adjournments and postponements thereof, to cast, on behalf of the undersigned, all votes that the undersigned is entitled to cast, and otherwise to represent the undersigned, at such meeting and all adjournments and postponements thereof, with all power possessed by the undersigned as if personally present and to vote in their discretion on such other matters as may properly come before the meeting. The undersigned hereby acknowledges receipt of the Notice of the Annual Meeting of Stockholders and of the accompanying proxy statement, which is hereby incorporated by reference, and revokes any proxy heretofore given with respect to such meeting.

This proxy is solicited on behalf of the NNN Apartment REIT, Inc. Board of Directors. In their discretion, the proxies are authorized to vote upon such other business as may properly come before the annual meeting, including matters incident to its conduct.

When properly executed, this proxy will be voted as specified by the undersigned stockholder. If no voting instruction is given as to any item, this proxy will be voted “FOR” the nominees named in Item 1 and “FOR” Item 2.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE NOMINEES NAMED IN ITEM NO. 1 AND “FOR” ITEM NO. 2. IF NO SPECIFICATION IS MADE, SUCH PROXY WILL BE VOTED “FOR” SUCH ITEM.

1. For the election of Stanley J. Olander, Jr., Glenn W. Bunting, Jr., Robert A. Gary, IV, W. Brand Inlow and Scott D. Peters to serve as Directors until the Annual Meeting of Stockholders of NNN Apartment REIT to be held in the year 2008 and until their successors are elected and qualified.

o For All Nominees o Withheld as to All Nominees o For All Nominees Except*

Stanley J. Olander, Jr.	Glenn W. Bunting, Jr.		Robert A. Gary, IV
W. Brand Inlow		Scott D. Peters

*To vote against any individual nominee, strike a line through the nominee’s name

2. For ratification of the appointment of Deloitte & Touche LLP as our Independent Registered Public Accounting Firm for the fiscal year 2007.

o     For                    o     Against                    o Abstain

SIGN, DATE and RETURN:

	Date:	/     / 2007
If the stock is jointly owned, both parties must sign.
	Date:	/     / 2007

YOUR VOTE IS IMPORTANT!

You can authorize the proxies to cast your vote and otherwise
represent you at the annual meeting in one of four ways:

MAIL: Return the completed form in the enclosed postage-paid envelope.

FAX: Fax the completed form to (212) 645-8046.

PHONE: Call our toll-free number at (866) 888-4066 to vote.

INTERNET: Vote online at https://www.proxyvotenow.com/aptre.