Wells Buys 404,000-SF Office Building

"This purchase moves us a major step toward our goal of achieving more than $1 billion in acquisitions during 2002," according to David Steinwedell, Wells' chief investment officer. "Just as important, we have maintained our strategy of purchasing class A properties leased long term to highly creditworthy tenants."

The tenants, in this case, are Key Bank USA National Association, a subsidiary of KeyCorp, and Gemini Technology Services, itself a subsidiary of Deutsche Bank AG. Key Bank USA conducts consumer loan activities nationally for its parent company, currently ranked 257th on the Fortune 500, while Gemini Technology Services is an information technology division of Deutsche Bank AG.

Combined, the two tenants occupy 100% of the facility. Key Bank USA currently has 13 years and six months remaining on its lease; Gemini Technology Services still has 11 years and four months to go.

Further details of the sale transaction were not disclosed. Citing a confidentiality agreement, a Wells spokesperson would not identify the seller of the asset.

Located on a 19-acre site within 58-acre Gatehall Corporate Center, the newly acquired building features state-of-the-art security and HVAC systems, fiber optics and power sources. The property has direct access to Routes 10 and 202 and is located within a half-mile of Cendant's world headquarters and the regional offices of Nabisco/Kraft, FedEx and a number of other large corporations, according to the spokesperson.

For its part, Wells buys mostly existing class A, build-to-suit and sale/leaseback office and industrial properties. Besides its goal of buying $1 billion worth of assets this year, the REIT, through its three investment products, manages more than $1.9 billion in assets for approximately 60,000 investors nationwide.