Triple Net Acquires 99,000-SF Office Building

NORCROSS, GA-Triple Net Properties LLC, based in Santa Ana, CA, has acquired an approximate 99,000-sf office building at 3550 Engineering Dr. The building was purchased from Southeast Partners, based in the Netherlands, says Jake Young, acquisitions associate with Triple Net. A sales price and a cap rate were not disclosed.

Justin Parsonnet, with CB Richard Ellis, represented Southeast Partners. Joseph Byers, with Commercial Realty Capital, arranged the financing which was provided by PNC Bank, National Association. Southeast Partners acquired the property, which was constructed in 1998, about three or four years ago for a fund, Young says. Southeast was liquidating the fund and this was the last property to be sold, he says.

Triple Net acquired the property, in part, because it has a “stabilized rent roll,” says Jeff Hanson, chief investment officer of Triple Net. The four-story building, located in the Technology Business Park of Peachtree Corners, is currently 100% leased to eight tenants. Fair Isaac Corp. and Novasoft Information Technology Corp. together lease 75% of the building with the other six tenants leasing the remaining 25% of the space. Fair Isaac and Novasoft Information Technology both recently renewed their leases for 10 terms expiring in 2018, Hanson says. The asking lease rate for the building is $20 per sf gross. The average lease rate in the building is approximately 10% below market rates giving Triple Net the opportunity to increase rents, Hanson says.

Triple Net was also interested in the property it had a low replacement cost and because “Norcross is a very strong region of northern Atlanta,” Hanson says. Additionally, Triple Net is opening its 11th regional office in Atlanta. “We have been acquiring a lot of assets in this marketplace,” Hanson says. “We have been in Atlanta for a number of years but we have really begun a hard pressed acquisition effort over the last nine months.”

Triple Net has acquired approximately $400 million of property in the Atlanta area in the past eight to nine months. Other recent acquisitions include the 276-unit Retreat at Stonecrest apartment community at 40 Amanda Dr. and the 200-unit Century Hills apartment community in Augusta, as reported by GlobeSt.com.