Wells declined to disclose the contract price or the seller's identity. "We are bound by the acquisition agreement to not disclose either of those bits of information," Wells corporate information director Ben Johnson tells GlobeSt.com.
But area brokers in a position to know tell GlobeSt.com the Atlanta REIT paid New York-based TIAA-CREF an estimated $82.84 million, based on Wells' recent acquisitions which have been averaging about $185 per sf.
For example, last week, Wells paid $51.8 million, or about $224.63 per sf, for a two-building, 230,600-sf, 14-year-old office property in Shady Grove Executive Center in Rockville, MD, as GlobeSt.com previously reported.
In July, Wells closed on the three-building, 289,000-sf Internet Security Systems campus at Mount Vernon Place in Atlanta for a total $50.5 million, or an average $174.74 per sf, as GlobeSt.com also reported.
The Glenridge Highlands Two acquisition price equates to an estimated $190 per sf, or about 15% more than TIAA-CREF paid for the asset in December 2001. At that time, TIAA-CREF paid the building's developer, The Hogan Group of Tampa, FL, $72 million or about $174 per sf, according to county real estate records.
Cingular Wireless occupies 313,927 sf or about 76% of Glenridge Highlands Two's total rentable area, Wells chief investment officer David Steinwedell says in a prepared statement.
"This is a great example of how quality tenants in quality real estate can combine to produce quality income for our investors," Steinwedell says. "The Cingular building adds to the strength and diversity of our portfolio of class A office and industrial properties."
The property's location on 5.2 acres at 5565 Glenridge Connector in the Central Perimeter submarket, just north of the Buckhead submarket, pleases Steinwedell. "Its highly visible location provides direct access to I-285 and GA 400, two of Atlanta's major traffic arteries," he says.
The building is 97.3% leased to five tenants on 10-year leases. The weighted-average remaining lease term is 7.5 years. The average asking rent range is $23 to $25 per sf.
Wells will be self-managing Glenridge Highlands Two, eliminating The Hogan Group as a property manager, area brokers following the building's progress tell GlobeSt.com. Besides Cingular, other tenants in the building are Habif, Arogeti & Wynne LP, a large regional accounting firm; the private investment group of Salomon, Smith, Barney Inc.; The Ashford Club, a private dining and entertainment facility; and Le Petit Bistro Inc., a breakfast/lunch restaurant.
Wells has purchased about $1.2 billion in new properties this year, area brokers following the company tell GlobeSt.com on condition of anonymity.
The hectic acquisition pace makes Wells one of the largest purchasers of class A office properties in the US, according to New York-based Real Capital Analytics. Last year, Wells completed 30 deals for $1.4 billion, easily leading all other class A office building purchasers.
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