Triple Net Purchases Sevens Building for $28M

CLAYTON, MO-Triple Net properties LLC, through the NNN 2003 Value Fund, has purchased the 197,000-sf Sevens Building here from Sevens St. Louis LLC for $28.2 million. The property is a 24-story class A office building in this submarket of St. Louis.

The company financed the purchase with an initial advance of $21 million from a $23.5 million secured loan from General Electric Capital Corp., $4.7 million from an unsecured loan with NNN Realty Advisors Inc., the parent company of Triple Net, and $3.9 million from available cash from operations, according to a company SEC filing statement.

According to a Triple Net statement, the building was completed renovated between 1998 and 2000, and has a 10-level parking garage . The 35-year-old building at 7777 Bonhomme Ave. was 79% occupied at closing by 56 tenants, including Smith, Moore & Co., Grubb & Ellis Gundaker Commercial Group and Clockwork Home Service. The average office lease rate in the 6.5-million-sf Clayton office area is $23.50 per sf, according to a third quarter Grubb & Ellis market report.

A Triple Net executive did not return a call for comment. Mike Hanrahan and Paul Hilton with Colliers International represented the seller.