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

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The Wells Core Office Income REIT paid $18.1 million for an119,600-square-foot, class A office building fully leased toJPMorgan Chase Bank N.A. The current aggregate annual base rent forJPMorgan Chase is approximately $2.4 million.

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The Norcross, GA-based REIT, which is still in its fundraisingstage, acquired the property from Brookfield Real EstateOpportunity Fund II. Brookfield acquired the five-year-oldbuilding, known as Royal Ridge V, is from JPMorgan Chase earlierthis year.

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“We looked at the building back JPMorgan had it on the market,but we weren’t targeting the whole portfolio, and JPMorgan electedto go with one buyer,” notes Joe Oglesby, chief investment officerof Wells Real Estate Funds. The acquisition was funded with $11.1million 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.

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

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

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Located at 3929 John W. Carpenter Fwy. in the Las Colinassubmarket, the three-story building is situated on 7.5 acres. Thebuilding is leased to JPMorgan Chase until February 2020. Thefinancial giant, whose lease commenced in February 2010, has theright to extend the term of its lease for four additional five-yearrenewal periods.

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

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Wells was represented internally by Keith Willby, senior vicepresident of capital markets, while Brookfield was represented byGary Carr of CB Richard Ellis.

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