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Wells REIT Forges 260,000-SF, Class A Office Buy

HOUSTON-Weatherford Center in the Galleria submarket sets the hook for the REIT's first acquisition from a fund now starting its third month. Sources tell GlobeSt.com that the fully leased asset trades for about $40 million or close to $155 per sf.

By Jennifer Brenner Andrade | Updated on February 10, 2004

HOUSTON-In a 30-day start to finish, Wells REIT Inc. has purchased the 260,000-sf Weatherford Center in the city’s Galleria submarket to mark its first acquisition from a fund just starting its third month. Industry sources tell GlobeSt.com that the property traded at close to $155 per sf or slightly more than $40 million.

The world headquarters for Weatherford International Inc., an oilfield services firm, fills 95% of the class A building at 515 Post Oak Blvd. The 10-year tenant is working on its second lease, with less than a decade left on the term. The balance of the 12-story building is leased to service-related tenants, including a restaurant.

The seller was a fund of TA Realty Associates of Boston, which acquired the asset in 1999. The seller’s broker, Rudy Hubbard, managing director in Houston for Transwestern Commercial Services, says the opportunity fund bought the building to add value. Weatherford’s long-term renewal accomplished that goal, says Hubbard, adding the building was on the market less than 30 days and received about a dozen offers for a listing without a minimum ask.

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