Wells buys office tower for $157 million
Capping off a year-long acquisition spree, Atlanta-based Wells Real Estate Investment Trust has closed on a $157 million Class-A office tower in Glendale, Calif. The 545,000 sq. ft. Nestle Building was bought from Douglas Emmett Realty Advisors, a Santa Monica, Calif.-based opportunity fund manager.
Based on the $295 per sq. ft. sale price, Wells will realize an initial annual yield of approximately 8%. Secured Capital handled the sale for Wells.
"The Nestle Building is considered one of the highest quality properties in the entire Los Angeles area," says David Steinwedell, Well’s chief investment officer.
Nestle USA occupies the entire building and has a lease through 2010. The company pays a triple-net rent of $23.50 per sq. ft.
This marks Wells’ 21st purchase of a building over $20 million in 2002, making the REIT one of the most active buyers. Wells has focused on single-tenant properties along with properties that have long-term leases with more than one tenant. According to a statement released by the firm, Wells has closed on more than $1.3 billion worth of deals in 2002.
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© 2012 Penton Media Inc.
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