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Wells Buys 106,000-SF Office Complex for $20M

BANNOCKBURN, IL-The building, which is fully leased to TAP Pharmaceutical Products, is the sixth Chicagoland acquisition for Wells REIT II.

By Gina Kenny | Updated on September 13, 2007

BANNOCKBURN, IL-Wells Real Estate Funds, based in Norcross, GA, has acquired Bannockburn Lake III, a 106,495-sf building at 2355 Waukegan Rd. Wells acquired the property from Denver-based Broe Real Estate. The sales price was $20.2 million, according to a Sept. 11 Form 8-K filing with the Securities and Exchange Commission.

A cap rate was not disclosed. The acquisition is for Wells Real Estate Investment Trust II and was funded with proceeds raised from Well’s public offering and proceeds from Well’s $400-million line of credit with Wachovia Bank, according to the SEC filing.

The three-story office building was constructed in 1987 and is currently fully leased to TAP Pharmaceutical Products, a joint venture of Abbott Laboratories and Japan-based Takeda Pharmaceuticals. TAP’s lease is until 2013. TAP develops pharmaceutical products and had a net worth, as of June 30, of $366.4 million, according to Well’s SEC filing. The asking lease rate for similar buildings in the area is about $14 per sf triple net, says Peter Mitchell, VP of Midwest acquisitions for Wells. Bannockburn Lake III, which is on a 10.2-acre parcel with trees and ponds, is one of five buildings in the Bannockburn Office Park. Keystone acquired three of the buildings at 2201-2333 Waukegan Rd. from GE Real Estate in July, as GE acquired the suburban portion of the Blackstone Group’s portfolio.

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