In a statement, Wells executives explained that the sale is all part of the REIT's ongoing strategy of pushing properties at the end of their cycle. The properties, "have increased in value, and their sale will create significant returns for our shareholders," states president Leo F. Wells III. He notes that he considers the sale as "an exercise in effective portfolio management that allows us to fine-tune our investment strategy while capitalizing on today's investment sales market."

E. Robert Roskind, Lexington's chairman, comments that the buy represents, "especially good timing for us considering the favorable financing environment and the significant range of capital resources available to Lexington to fund an acquisition of this size."

To fund the move, Lexington arranged to obtain $558.3 million of non-recourse first mortgage loans from JPMorgan Chase Bank, secured by individual first mortgages on each of the properties and on five other assets Lexington presently owns. Thirty-one loans, with an aggregate original principal amount of $540.7 million, will bear interest at a weighted average fixed rate of 5.2%. The remaining loan, with an original principal amount of $17.6 million, will bear interest at a floating rate. The balance of the purchase price is expected to come from equity commitments of existing joint venture partners (approximately $73.6 million) and cash balances (approximately $154.1 million).

Properties in the mix were acquired or developed between 1999 and 2003. They range in size from an 81,859-sf asset whose major tenant is AT&T Wireless in Harrisburg, PA to a 701,819-sf property in Millington, TN that is home to Ingram Micro. Other states represented in the portfolio include California (with a number of assets, including a 637,503-sf asset in Brea housing Bank of America); Texas (including a 130,290-sf property in Westlake that is home to DaimlerChrysler); and Iowa (a 405,000-sf Des Moines asset housing EDS).