A Starwood Capital Group affiliate has acquired a portfolio of nine commercial office buildings located mostly in the Sun Belt region. The buildings were purchased from Wells Real Estate Investment Trust II Inc. for a combined purchase price of $260.5 million.
The total portfolio includes 1.9 million sq. ft. of class-A office space in urban and suburban areas. The buildings are located in Orlando, Fla.; Tampa, Fla.; Charlotte, N.C.; Winston-Salem, N.C.; Pittsburgh and Salt Lake City. The buildings’ average year of completion is 1999. The buildings are currently 95 percent leased, excluding Salt Lake City, and more than 80 percent of the in-place income is derived from investment-grade tenants.
"We are pleased to have worked with Wells REIT II to reach an agreement to acquire a critical mass of high quality properties with strong tenant rosters that generate significant cash flow," Mark Keatley, senior vice president at Starwood Capital, said in a statement. "Most of these buildings are located in markets with outsized job and population growth projections."