The Wells REIT II has bought a 431,000 sq. ft. office building in Winston-Salem, N.C., for about $78 million, according to industry sources. The Class-A office building — One West Fourth Street — is 92% occupied. Wachovia leases 46% of the office space in the building, and law firm Womble, Carlyle, Sandridge & Rice occupies an additional 40%.

"The strong combination of creditworthy tenants on long-term leases, central location and nearly-new asset quality make One West Fourth Street an ideal fit in our portfolio," says David Steinwedell, chief investment officer at Wells Real Estate Funds.

With this acquisition, the Wells REIT II has nearly $570 million worth of assets under management.