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BOXBOROUGH, MA-Wells Real Estate Investment Trust acquired a 174,585 sf office building located at 90 Central St. near Route 495. The Atlanta-based national real estate investment management firm paid $35.2 million for the property, which a local industry expert tells GlobeSt.com is a good price based on the cash flow of the building.

The Class A building is 100% leased to Agilent Technologies through Sept. 2011. Wells emphasizes that Agilent has the “financial strength to maintain their long-term lease commitment at this property, which should further enable the Wells REIT to keep a consistent income stream flowing to its investors.” According to Brian McKenzie, a partner at Richard Barry Joyce & Partners and a brokerage specialist in the Route 495 market, a strong credit tenant and a good cash flow makes this asset unique. He tells GlobeSt.com that Agilent signed its lease at the height of the market, at a rate in the $20s per sf on a triple net basis.

“This deal is a testament to how much capital is on the sidelines waiting for good credit,” notes McKenzie. The price per sf of the building, he adds, is less important to the investor than what the tenant is paying. “Given the cash flow and the fact that it is well located and a brand new building,” he says, “this one shines, especially given that investors are risk averse.”

Completed in 2001 and located about 25 miles northwest of Boston, the three-story building features advanced telecommunications capabilities, a full-service cafeteria, nature trails, and 1,222 parking spaces.

Over the past two years, Wells Real Estate Funds has completed 31 transactions totaling more than $755 million. Its investment goal for 2002 is to spend just shy of $750 million on acquisitions. Through its three investment products, Wells Real Estate Funds manages more than $1 billion in assets for approximately 50,000 investors across the country.

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