SAP America will lease the top two floors of the nine-story building. The lease will begin on Feb. 1, 2008. Bert Collins, vice president of asset management for Wells Real Estate Investment Trust II, tells GlobeSt.com that it could not disclose lease rates for the deal but that the building's average net lease rate is $18 per sf.
"For us, it is really a home-run in terms of accomplishing what our investment strategy is," he says. The lease with SAP America "pre-fills an upcoming vacancy that we would have," Collins says. "Oracle is the prime tenant on this particular space."
Wells Real Estate Investment Trust II (Wells REIT II) was represented internally by Collins, with Bill Elwood and Pete Adamo of CB Richard Ellis. Wells REIT II owns 55 buildings in 18 states and specializes in class A office properties. SAP America, Inc. is a software company with headquarters in Newtown Square, PA. "We provide solutions for small, medium and large-size businesses in terms of their applications processing," Janice Johnson, director of external communications for SAP America, tells GlobeSt.com.
SAP America, Inc. will be moving from its current space in Westchester, IL. "We are doing it basically because of a space issue. We are looking at some significant new space and this particular property really fit the bill," Johnson says. Wells REIT II has seen an increase in interest in the Highland Landmark III lately. "In the past few months, we have seen a lot more activity pick up -- a lot of people coming by our building – so, we are very pleased with this location," Collins tells GlobeSt.com.
Highland Landmark III is a 275,000-sf building constructed in 2000 on the eastern end of Chicago's East-West Corridor submarket. The building is currently 97 percent leased, Collins says. MicroTek, which provides training for SAP America, currently leases space on the first floor of Highland Landmark III, Collins says. Wells REIT II is in the process of negotiation to extend that lease, he says.
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