Wells OP Acquires 364,000-SF Campus, Developable Land from IBM

BEAVERTON, OR-IBM has sold its 364,000-sf, five-building campus here to Wells Operating Partnership, a limited partnership formed to acquire, own, lease and operate real properties on behalf of Wells Real Estate Investment Trust Inc.

The $38.4-million purchase price includes: three two-story tilt-up office buildings totaling 220,000 rentable sf that are net leased to IBM; one vacant three-story office building (about 115,000 sf); one small warehouse building (about 30,000 sf) that also is vacant, and; 31.8 acres of developable land that local sources have said could hold another 500,000 sf of flex-office product.

According to the 8K Wells filed with the SEC on Friday, it paid $9.4 million for the developable land, $29 million for the buildings. The properties’ pro forma rental income through the first half of 2003 was $1.6 million, not including $1.1 million in tenant reimbursement for operating costs. Pro forma net income through the first half of 2003 was $741,000, according to the filing. The properties’ 2002 pro forma rental income was $3.2 million, not including $2.1 million in tenant reimbursement for operating costs. Pro forma net income in 2002 was $1.5 million.