Wells REIT II has added a pair of Class-A office towers in Manhattan Beach, Calif., to its growing portfolio. The 310,000 sq. ft. property — Manhattan Towers is located just outside of Los Angeles. Terms of the deal were not disclosed, but one industry source pegged the sale price at $90 million.
The six-story buildings are 97% occupied by a tenant roster that includes Northrop Grumman Space Technology and Mission Systems sector. Northrop occupies 76% of the building on a long-term lease.
"This is one of the highest quality and best located office buildings in the El Segundo/Manhattan Beach market," says David Steinwedell, chief investment officer with Wells Real Estate Funds. "With the addition of Manhattan Towers, we are continuing to diversify the Wells REIT II property portfolio by geographic region, as well as by tenant type and lease term for the benefit of our investors."
The Wells REIT II is the second unlisted REIT offering from Atlanta-based sponsor Wells Real Estate Funds. The Manhattan Towers sale represents the REIT’s fourth acquisition. Its predecessor — Wells REIT I— was the most prolific buyer of office properties in the U.S last year.