It appears that Wells Real Estate Funds — sponsor of the Wells real estate investment trust — is the front-running bidder on a 1 million sq. ft. Boston office tower. The building, One Lincoln Street, is 100% pre-leased by the State Street Corp. and is scheduled to open in December.
Local reports peg the sale price between $600 million and $700 million. In addition, One Lincoln Street is net leased over a long term — another factor that appeals to the Atlanta-based REIT.
Under State Street’s leasing agreement with the owner — the Gale Co. — State Street has the right of first refusal to buy the building. According to local reports, however, experts doubt that State Street will choose to buy the building, given the high sale price.
The building is owned by Gale Co., Morgan Stanley, the State Teachers Retirement System of Ohio and Columbia Plaza Associates.