LOS ANGELES, Nov. 9, 2017 /PRNewswire/ — National Financial Realty, Inc. (NFR), a global real estate investment firm based in Los Angeles, is announcing the sale of a 211,863-square-foot Wells Fargo Bank leased office building located at 18700 NW Walker Road in Hillsboro, Oregon, a thriving Portland submarket, to an undisclosed buyer. The property sold for $39,750,000.
The transaction represents the final sale and investment exit of a 3,600,000-square-foot portfolio comprised of 41 office and retail buildings located in 9 states. Commencing in 2010, NFR’s investment strategy focused on the wholesale aggregation of mission critical properties leased to leading financial institutions which were then sold independently to individual investors.
The aggregate sales price of the portfolio inclusive of the Hillsboro property was over $366,000,000, representing $100,000,000 in excess of NFR’s original cost basis. With the closing of this most recent sale, NFR has now successfully executed its business plan resulting in an attractive risk adjusted return to the firm and its institutional capital partners. Vincent E. Pellerito, CEO with National Financial Realty, made the announcement.
NFR originally purchased the mission critical Hillsboro property in 2010, marking its first acquisition of a Wells Fargo leased property. In March 2013, the firm acquired a 40-building, 3.3 million-square-foot portfolio with 90% of the buildings leased to Wells Fargo. NFR secured control of the portfolio through a defaulted mezzanine position at a >50% discount to replacement basis, and at the time the transaction established NFR as the largest privately-held investment firm focused on acquiring and operating properties leased to regulated financial institutions. NFR significantly enhanced the portfolio value by negotiating two new leases totaling $155,000,000 with Wells Fargo and the American Bible Society. In addition, NFR and its capital partners invested several million dollars in capital improvements throughout the portfolio.
“We’re extremely pleased to announce this sale marking the conclusion to a very successful portfolio investment,” notes Pellerito. “Our essential focus as an investor is to create value by acquiring well-located income producing properties, attracting world-class tenants and opportunistically exploring divestitures – the execution of this portfolio is a clear demonstration of this strategy. The successful creation and exit of the portfolio is a showcase for NFR’s track record of building long-term value, and we will continue to invest in similar opportunities going forward.”
About 18700 NW Walker Road
Originally constructed in 1978, the 18700 NW Walker Road property is a mission-critical site for Wells Fargo operations in the Portland, Oregon market and the company recently executed a new long-term lease further reaffirming Wells Fargo’s commitment to the building. The building’s large floor plates addressed the lack of similar offerings in the region and capital improvement upgrades to the building are both planned and underway. The site offers a prime location within the Sunset Corridor submarket and in close proximity to major public transportation routes and Portland’s light rail system. The flourishing Sunset Corridor continues to be a hot spot for technology companies and corporate campuses.
About National Financial Realty
Based in Los Angeles, National Financial Realty is a privately-held investment firm capitalizing on commercial real estate market inefficiencies. NFR’s proven performance and multi-decade relationships create extraordinary opportunities in special situations where rapid capital deployment, transaction size, complexity, or current market conditions may impede other investors. NFR executes timely investments, typically in off-market transactions with solid fundamentals, limited and controllable risk, predictable cash flow and significant potential for appreciation. For more information visit www.nationalfr.com.
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SOURCE National Financial Realty