Starwood Capital Buys Office Portfolio from Wells REIT II
January 3, 2013
An affiliate of private investment firm Starwood Capital purchased a portfolio of nine office buildings located across six different markets from Wells Real Estate Investment Trust II, Inc. for a combined purchase price of $260.5 million.
The total portfolio includes approximately 1.9 million square feet of office space. The buildings are located in Orlando, Tampa, Charlotte, Winston-Salem, Pittsburgh and Salt Lake City and have an average age of 14 years.
According to Mark Keatley, senior vice president of Starwood Capital, most of the acquired buildings are located in markets with outsized job and population growth projections. Chris Graham, managing director, added the acquisition was "significantly below replacement cost per square foot" and is expected to generate strong cash-on-cash returns.
Although unconfirmed at press time, the sale is believed to involve the following properties:
CHARLOTTE: Edgewater Corporate Center I; LakePointe3; LakePointe5
ORLANDO: Baldwin Point; Siemens Quadrangle II
PITTSBURGH: 2000 Park Lane
SALT LAKE CITY: 180 E. 100 South
TAMPA: Tampa Commons
WINSTON-SALEM: One West Fourth Street
According to Starwood Capital, the buildings are currently 95% leased, excluding the Salt Lake City property.