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HOUSTON-Triple Net Properties of Santa Ana, CA has sold its 207,435-sf 1401 Enclave Pkwy. office building to a fund operated by a Mississippi-based REIT. The deal included both Triple Net’s sale of the portion of the property owned by its tenant-in-common investors and the sale of an interest in the building owned by a related Triple Net entity called T REIT.

The new owner of Enclave Parkway is Jackson, MS-based Parkway Properties Inc., a publicly traded REIT that acquired the six-story class A office building via Parkway Properties Office Fund. The fund expects to spend an additional $346,000 for closing costs, building improvements, leasing costs and tenant improvements during the first two years of ownership.

The 1401 Enclave building is 90% leased to four tenants: Shaw Group Inc., Meridian Resource Company LLC, Lloyd’s Register North America Inc. and Parker Drilling Co. Built in 1999 and purchased by Triple Net in 2003, the building occupies a seven-acre parcel in the Enclave, a 100-acre master-planned corporate park. The 1401 asset includes an attached four-level parking garage with 711 spaces plus surface parking for 103 vehicles.

Parkway’s financing included a $28-million first mortgage with a fixed-rate interest of 5.76% that matures in July 2015. The deal was brokered by Alan T. Grilliette of Transwestern, who represented the TIC sellers and Parkway Properties Office Fund.

T REIT’s sale of its interest in the Enclave property is part of a liquidation strategy the company has been pursuing, in which it has sold 10 of 11 properties, The liquidation is expected to be done by Dec. 31. Jack Maurer, president and CEO of T REIT, tells GlobeSt.com that T REIT owned its interest in the Enclave property through an LLC.

Triple Net serves is adviser and manages the day-to-day operations of T REIT, which was formed to invest in properties in states that do not have state income taxes, like Texas. The theory behind investing in these states was that growth would be greater there and that has turned out to be true, Maurer says.

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