Triple Net Properties Emerges from SEC Investigation Untarnished
- Jun 02, 2008
Triple Net Properties L.L.C. has been spared by the Securities and Exchange Commission in its investigation of the real estate company, which came under the ownership of Grubb & Ellis Co. last December in a reverse merger with Triple Net’s affiliated holding company, NNN Realty Advisors. The SEC concluded the investigation with a recommendation of no enforcement action. The SEC initiated “In the matter of Triple Net Properties L.L.C. in 2004, requesting information from the company regarding its disclosure in public and private securities offerings related to the offering of the sale of units from July 11, 2003 through October 13, 2004. Triple Net reported it had determined that certain inaccuracies existed in previous performance tables, as well as in certain depreciation and amortization capitalizations. Additionally, certain operating expense and monthly mortgage and principal payments were not reported. Triple Net concluded that the discrepancy accounted for $325 million, including a $1.73 million overstatement and a 1.4 million understatement. At the time the SEC investigation commenced, Triple Net was being led by chairman & CEO Tony Thompson, who established the company in 1998. After the Grubb & Ellis/NNN Realty Advisors reverse merger, Thompson became chairman of the board of Grubb & Ellis, but left the position soon after to establish Thompson National Properties L.L.C. earlier this year. Both Grubb & Ellis and Thompson announced today that they concur with the SEC’s decision, and are more than satisfied with the outcome of the investigation.