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Mar. 21, 2013

Oaktree-NFR Partnership Acquires 450K SF Wells Fargo Operations Center in Raleigh

by Adriana Pop, Associate Editor

An affiliate of Oaktree Capital Management L.P., in partnership with National Financial Realty Inc. (NFR) of Los Angeles, has recently purchased the 450,000-square-foot Wells Fargo office park in west Raleigh, the Triangle Business Journal reports. Located at 1100 Corporate Center Drive, the three-building property has a tax value of $64 million.

The sale was part of an approximately $240 million transaction through which the partnership has acquired 40 office buildings across the country from First States Investors B, L.P. The 3.4 million-square-foot office portfolio is 90 percent leased on a long-term basis to Wells Fargo Bank.

“This off-market acquisition, principally backed by 11 years of Wells Fargo credit, at a 50 percent discount to replacement cost, is another example of Oaktree’s commitment to relationship-based transactions with well-positioned strategic operating partners like NFR, in addition to lenders and borrowers in need of capital solutions,” said John Brady, managing director and head of global real estate for Oaktree.

The Wells Fargo portfolio purchase establishes NFR as the largest privately-held investment concern focused on the acquisition and operation of properties leased to regulated financial institutions.

In multi-family transaction news, Hawthorne Residential Partners of Greensboro has partnered with Midway Investors L.L.C. of New York to acquire the Dunhill Trace apartment community in Raleigh.

According to the Triangle Business Journal, Hawthorne-Midway Dunhill L.L.C. has purchased the 250-unit property from a subsidiary of Prudential Real Estate Investors of Atlanta. The acquisition price was $23.1 million, county records show.

Dunhill Trace is located near the intersection of Glenwood Avenue and Pinecrest Road. Prudential acquired the community immediately after its opening in 1995.

Hawthorne Residential Partners manages 15 apartment properties In the Triad, including three in Raleigh: the Pine Winds Apartments, Lynnwood Park and Calibre Chase. In Durham, the company manages the Hawthorne at the View community, as well as and the Spring Ridge Apartments.

Photo credits: Justin Sullivan/Getty Images