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Atlanta Commercial Real Estate

STATE FARM BUY DETAILS

So, what did Wells REIT pay for the State Farm buildings? How about more than $140M? The company's subsidiary Wells Core Office Income REIT announced in an SEC filing that it did in fact purchase 64 and 66 Perimeter Center from Rubenstein Partners, as we reported last week. (Occasionally we get one right.) The fund shelled out $118.5M for the two buildings, totaling 583,700 SF, or $203/SF. The other $23M went toward rental and op ex reimbursement abatements and TIs.
Other transaction details revealed by Wells include:

?State Farm is  phasing in its occupancy through August and will eventually take 86% of the total space (it is 96% leased).

?State Farm is getting a ?full rental abatement? for its expansion space, for which Wells received a purchase credit.

?State Farm's current lease will expire in 2023, but it has options on three additional five-year renewals at 95% of the then-current market rate.

?Total aggregate annual rents at 64 and 66 PCE  is $2.3M.

?The Dunwoody Development Authority holds fee simple title to the land underneath the buildings, which  issued a $115M bond for building renovations.

Wells itself has come out of the New Year swinging with acquisitions. It also announced last week that its Investment Trust II purchased 333 Market Street (above), a 33-story trophy office tower  in San Francisco's financial district, from the Korean Federation of Community Credit Cooperatives for an undisclosed sum. The 657k SF tower  is fully leased to Wells Fargo.

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