The $38.4-million purchase price includes: three two-story tilt-up office buildings totaling 220,000 rentable sf that are net leased to IBM; one vacant three-story office building (about 115,000 sf); one small warehouse building (about 30,000 sf) that also is vacant, and; 31.8 acres of developable land that local sources have said could hold another 500,000 sf of flex-office product.

According to the 8K Wells filed with the SEC on Friday, it paid $9.4 million for the developable land, $29 million for the buildings. The properties' pro forma rental income through the first half of 2003 was $1.6 million, not including $1.1 million in tenant reimbursement for operating costs. Pro forma net income through the first half of 2003 was $741,000, according to the filing. The properties' 2002 pro forma rental income was $3.2 million, not including $2.1 million in tenant reimbursement for operating costs. Pro forma net income in 2002 was $1.5 million.

Brad Fletcher and Dave Squire, both managing directors of the Portland office of Grubb & Ellis, represented IBM in the transaction. They declined comment on any specifics, citing confidentiality agreements. "The office buildings and land component represent one of the most significant opportunities in the marketplace," Fletcher tells GlobeSt.com. "I am certain it will be an excellent investment for Wells."