This buy joins Triple Net's 2003 acquisition of the PublicLedger Building in the Independence Mall submarket here in 2003 andfollows by less than three months its $101-million acquisition of300 Four Falls, a 298,371-sf class A office property in WestConshohocken. "We think Philadelphia is overlooked," Louis Rogers,Triple Net's president, tells GlobeSt.com. "It's a market that wethink has recovered. We look for opportunities, and often they arein markets like Denver, Milwaukee and Philadelphia." Robert Faheyand Lizann McGowan of the local office of CB Richard Ellisrepresented the seller in the transaction, working with BrendanConsidine, Triple Net's director of acquisitions. Eric Tupler,senior director in the Denver office of CBRE Melody, arranged $132million in acquisition funding from Wachovia Securities. It is a10-year loan at a 6% fixed rate with five years of interest-onlypayments followed by a 30-year amortization schedule.

The building is 95% leased, and Sunoco, Day & Zimmerman andZurich Insurance are among the major tenants. "There's not a lot ofrollover, and Market West is the largest office submarket in theCBD," Considine says. "We see this as a part of the revitalizing ofDowntown Philadelphia," he adds, referring to Center City'sresidential boom, which includes conversion of older buildings tocondos, reducing the office vacancy rate while increasing demandfor walk-to-work business locations.

The asset was built in 1974. According to Considine, it hasreceived about $9 million in renovations and upgrades, including anew lobby and expanded parking, over the past several years. TripleNet has not yet determined who will handle leasing. The rentalrates are between $21 per sf and $22 per sf, Considine says.