Richmond, VA-Wells REIT of Atlanta bought a four-story, 100,000-sf, class A office building in Waterford Business Park here for $11.4 million or $114.77 per sf. The REIT then leased the entire asset to Alstom Power Inc. for seven years at an estimated value of $10.5 million.

Waterford Park rents average $15.50 per sf. The average cap rate on this acquisition is 11.79%. The build-to-suit property is on 7.5 acres at 5309 Commonwealth Dr.

The deal originated from Wells’ previous owner-tenant relationship with ABB Alstom Power Inc. Wells developed an 83,000 sf office building for ABB in Knoxville, TN in 1998. Alstom and ABB Power Generation merged in June 1999 to form ABB Alstom Power Inc. The company later shortened its name to Alstom Power Inc. Alstom has a work force of 58,000 in 100 countries

Wells manages $560 million in assets for 30,000 investors. The REIT acquires and manages class A suburban office and industrial assets largely leased to tenants with a net worth of at least $100 million.

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