We report the identification of the M9 dwarf SDSS J000649.16−085246.3 as a spectral binary and radial velocity (RV) variable with components straddling the hydrogen-burning mass limit. Low-resolution near-infrared spectroscopy reveals spectral features indicative of a T dwarf companion, and spectral template fitting yields component types of M8.5 ± 0.5 and T5 ± 1. High-resolution near-infrared spectroscopy with Keck/NIRSPEC reveals pronounced RV variations with a semi-amplitude of 8.2 ± 0.4 km s −1 . From these we determine an orbital period of 147.6 ± 1.5 days and eccentricity of 0.10 ± 0.07, making SDSS J0006−0852AB the third tightest very low mass binary known. This system is also found to have a common proper motion companion, the inactive M7 dwarf LP 704-48, at a projected separation of 820 ± 120 AU. The lack of Hα emission in both M dwarf components indicates that this system is relatively old, as confirmed by evolutionary model analysis of the tight binary. LP 704-48/SDSS J0006−0852AB is the lowest-mass confirmed triple identified to date, and one of only seven candidate and confirmed triples with total masses below 0.3 M currently known. We show that current star and brown dwarf formation models cannot produce triple systems like LP 704-48/SDSS J0006−0852AB, and we rule out Kozai-Lidov perturbations and tidal circularization as a viable mechanism to shrink the inner orbit. The similarities between this system and the recently uncovered low-mass eclipsing triples NLTT 41135AB/41136 and LHS 6343ABC suggest that substellar tertiaries may be common in wide M dwarf pairs.