LOS ANGELES—An affiliate of Oaktree Capital Management, L.P. in partnership with National Financial Realty, Inc. , has purchased a portfolio of 40 office buildings from First States Investors B, L.P. The acquisition of the 3.4 million-square-foot office portfolio, which is 90 percent leased to Wells Fargo Bank, establishes NFR as the largest privately-held investment firm focused on acquiring and operating properties leased to regulated financial institutions.

“This off-market acquisition, principally backed by 11 years of Wells Fargo credit, at a 50% discount to replacement cost, is another example of Oaktree's commitment to relationship based transactions with well-positioned strategic operating partners like NFR, in addition to lenders and borrowers in need of capital solutions,” said John Brady, managing director and head of global real estate for Oaktree.

“Acquisition of this geographically diverse portfolio fits perfectly into NFR's investment strategy to acquire excellent properties leased to leading financial institutions that offer reliable cash flow and significant potential for appreciation,” said Vincent E. Pellerito, President and CEO of NFR.

He notes that Wells Fargo has a credit rating of “AA” by Standard & Poors and “A1” by Moody's. “We also appreciate this opportunity to expand our relationship with Wells Fargo beyond our current ownership of its operation and data center in Hillsborough, Oregon,” Pellerito added.

The 40 buildings are leased on a long-term basis to Wells Fargo and include mission critical operations facilities as well as branch offices in eight Eastern and Southeastern states: North Carolina, South Carolina, Virginia, Florida, New Jersey, Pennsylvania, Maryland and Georgia. North Carolina is home to the largest share of the portfolio with eight buildings totaling 1.2 million square. Second is Pennsylvania with five buildings that comprise 600,000 square feet, including an almost 500,000-square-foot regional operations center in Philadelphia.

Instant Insights /

Oaktree and Partner Acquire$240 M East Coast Portfolio

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