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Wells Fund Buys 308,554-SF Office for $60M

IRVING, TX-Wells Real Estate Investment Trust II pays an AT&T affiliate an undisclosed sum for the Sterling Commerce Building. Area brokers tell estimated closing price is in the $60-million range.

By Alex Finkelstein | Updated on December 22, 2006

IRVING, TX-Wells Real Estate Investment Trust, a public non-traded REIT based in Norcross, GA, has acquired Sterling Commerce Building. The 12-story, seven-year-old, 308,554-sf class A office building is in the affluent Las Colinas submarket of metro Dallas. The seller was Sterling Commerce, an affiliate of AT&T.

A Wells representative tells GlobeSt.com the closing price will be disclosed next week when the transaction is publicly filed. However, area brokers familiar with the Las Colinas office market tell GlobeSt.com the 100%-leased building along John Carpenter Freeway probably traded in the $200-per-sf range. That would translate to a $60-million tab as the estimated aggregate value of the transaction, Dallas brokerage sources say.

“We were attracted not only by a fully leased, very desirable property with strong tenants, but by the opportunity for future development,” Jeff Gilder, managing director of acquisitions for Wells Real Estate Funds says in a prepared statement. The building sits on a 16.3-acre site that could accommodate an additional one million sf of office space, Gilder says. The site was originally planned in 1999 as a three-building complex.

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