Dan Goodier, acquisitions associate with Norcross, GA-based Wells Real Estate Funds, declines to disclose the price paid for the asset, and, as yet, the terms of the acquisition have not been filed with the SEC. According to records obtained by GlobeSt.com, the price was $29.7 million, which translates to nearly $261 per sf.
At the time of its July lease agreement, a Shire spokesman told GlobeSt.com that his UK-based firm planned to invest approximately $30 million in renovations. The state has provided Shire with nearly $2.1 million in incentives for the project. The aggregate value of the Shire lease is undisclosed. The published asking rate for office space in the Chesterbrook park is $27 per sf.
Michael Blunt, SVP, and Robert Fahey, EVP in the local office of CB Richard Ellis, represented the seller, Harrisburg-based Pennsylvania State Employees Retirement System, which is advised by Philadelphia-based Grosvenor Investment Management US Inc. Heather Griner, SVP of acquisitions, represented Wells REIT II in house.
The quality of the tenant and its investment in renovations "really caught our eye," Goodier tells GlobeSt.com. "It's a great complement to our portfolio and our existing tenant roster." The building was completed in 1985, "but its effective age is much younger," he adds.
"We're very pleased with this acquisition--a newly renovated property in what we think is Western Pennsylvania's top suburban office park with a long lease to a strong global tenant," adds Griner in a statement. Wells REIT II now has 65 buildings in 20 states and Washington DC aggregating 16 million sf. Based on the purchase prices, the portfolio totals more than $3 billion, and it is 98% leased.
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