An affiliate of Starwood Capital Group Global L.L.C. has purchased a portfolio of nine commercial office buildings totaling 1.9 million square feet for $260.5 million, the company announced Jan. 2.
The Class A office buildings, which are located in Florida, North Carolina, Pennsylvania and Utah, were purchased from Wells Real Estate Investment Trust II Inc. (Wells REIT II).
Starwood Capital Group, based in Greenwich, is a private investment firm led by Barry Sternlicht that focuses primarily on global real estate.
The buildings, which are located in urban and suburban areas, have an average year of completion of 1999. Excluding a portion of the portfolio located in Salt Lake City, the buildings are currently 95 percent leased.
“This transaction is an excellent opportunity for Starwood and its investors that perfectly fits our investment strategy because it generates strong cash on cash returns, it was purchased significantly below replacement cost per square foot and is located in markets where there is limited new supply,” said Chris Graham, managing director at Starwood Capital, in a statement.
