Jan. 2 (Bloomberg) -- Starwood Capital Group LLC, the investment firm led by Barry Sternlicht, bought nine U.S. office buildings for $260.5 million to gain income-producing properties in markets with job growth and limited new supply.
The seller was Wells Real Estate Investment Trust II Inc., a non-traded REIT based in Norcross, Georgia, Starwood Capital said today in a statement. The Class A office buildings include 1.9 million square feet (176,500 square meters) of space and are located in cities including Pittsburgh; Salt Lake City; Charlotte and Winston-Salem, North Carolina; and Orlando and Tampa, Florida.
The buildings, with the exception of the one in Utah, are 95 percent leased, with more than 80 percent of the income derived from investment-grade tenants, Greenwich, Connecticut-based Starwood Capital said.
“Most of these buildings are located in markets with outsized job- and population-growth projections,” Mark Keatley, senior vice president of Starwood Capital, said in the statement.
The purchase price was “significantly” below the replacement cost per square foot, said Chris Graham, a managing director at Starwood Capital, which has more than $22 billion of assets under management.
Wells REIT II, which focuses on office properties, has about 82 buildings with more than 20 million square feet after the sale to Starwood Capital.
To contact the reporter on this story: Hui-yong Yu in Seattle at email@example.com
To contact the editor responsible for this story: Kara Wetzel at firstname.lastname@example.org