Wells Buys Two Fully Leased Local Properties for $29.9M

Atl5-28cATLANTA –Wells Real Estate Investment Trust has purchased two fully leased hometown properties. Brookside/300, a two-story, 101,207-sf office building on 9.89 acres at 3750 Brookside Pkwy., is 25 miles north of Downtown and has direct access to Highway 400.

Wells wouldn’t disclose the price but published reports estimate it at $14.9 million or $147.22 per sf.

Co-tenants of the property, which was built in 2001, are Agilent Technologies and Philips Electronics with leases that extend through 2011 at estimated full-service rents of $21 per sf, according to first-quarter submarket studies by local brokerages.

In April, WellsREIT purchased another fully leased building in Johns Creek at 11695 Johns Creek Parkway for $15 million or $150 per sf. This 100,000-sf property is leased to Novartis through July 2011 at estimated full-service rents of $20 per sf to $22 per sf, area brokers tell GlobeSt.com.

Both properties were developed and sold by the Chicago-based Alter Group through its Atlanta office. Both match the WellsREIT publicly announced strategy of buying class A existing office properties that are leased long-term to Fortune 500-type companies.

Agilent, a technology company, ranks 212 on the Fortune 500 list of America’s Largest Companies. Philips is a global electronic company with more than 189,000 employees in 60 countries. Switzerland-based Novartis is a pharmaceutical firm with annual sales of $19.1 billion.

David Steinwedell, managing director of acquisitions, Wells Real Estate Funds, Atlanta, and Todd Yates of the Alter Group’s Atlanta office, negotiated both sales. Neither Steinwedell nor Todd Yates could be reached for comment.