IRVING, TX-Wells Real Estate Funds’ newest non-traded REIT has made its first acquisition.

The Wells Core Office Income REIT paid $18.1 million for an 119,600-square-foot, class A office building fully leased to JPMorgan Chase Bank N.A. The current aggregate annual base rent for JPMorgan Chase is approximately $2.4 million.

The Norcross, GA-based REIT, which is still in its fundraising stage, acquired the property from Brookfield Real Estate Opportunity Fund II. Brookfield acquired the five-year-old building, known as Royal Ridge V, is from JPMorgan Chase earlier this year.

“We looked at the building back JPMorgan had it on the market, but we weren’t targeting the whole portfolio, and JPMorgan elected to go with one buyer,” notes Joe Oglesby, chief investment officer of Wells Real Estate Funds. The acquisition was funded with $11.1 million from a mortgage loan, $4.7 million from a bridge loan and $2.3 million raised from the REIT’s ongoing public offering, according to filings with the SEC.  

“Across our funds, we put a strong emphasis on credit, and JPMorgan has superb credit,” Oglesby tells GlobeSt.com. “We were very comfortable with the price per foot and the overall price given the credit.”

Moreover, Oglesby notes Wells has purchased roughly 10 properties in the Metroplex through its various funds. “We like Dallas – we’ve had good fortune there,” he explains. “And, this building is in a good location within the Dallas market.”

Located at 3929 John W. Carpenter Fwy. in the Las Colinas submarket, the three-story building is situated on 7.5 acres. The building is leased to JPMorgan Chase until February 2020. The financial giant, whose lease commenced in February 2010, has the right to extend the term of its lease for four additional five-year renewal periods.

In February 2015, JPMorgan Chase has a one-time right to terminate the lease with respect to specified parts of the first and second floors (representing approximately 65% of its lease). There is no penalty to JPMorgan Chase to exercise this option.

Wells was represented internally by Keith Willby, senior vice president of capital markets, while Brookfield was represented by Gary Carr of CB Richard Ellis.