Wells REIT II Acquires 657 KSF Office Tower in San Francisco
- Jan 08, 2013
Wells Real Estate Investment Trust II, Inc. has acquired 333 Market Street, a 33-story Class A office tower in the heart of San Francisco’s Financial District, for a reported $447 million from the Korean Federation of Community Credit Cooperatives.
“We are pleased to add this trophy quality asset to the Wells REIT II portfolio,” said Nelson Mills, Wells REIT II’s president. “This strategic acquisition in one of the nation’s premier office markets helps to further improve the institutional-quality of the portfolio overall.”
Constructed in 1979 and designed by Gin Wong Associates, the 657,000-square-foot building has undergone more than $80 million in capital investments and tenant improvements over the past eight years.
The Korean Federation of Community Credit Cooperatives originally purchased the building in 2010 from the Principal Financial Group for $333 million, or $507 a square foot.
The building is currently fully leased to Wells Fargo Bank, N.A., the fourth-largest bank in the U.S. by assets and the largest bank by market capitalization.
The Atlanta-based Wells REIT II portfolio currently consists of 82 office buildings in 20 states and Washington, D.C., and one international property, collectively covering approximately 21 million square feet.
For the transaction, Wells REIT II was represented internally by Keith Willby, senior vice president, capital markets.