Wells Real Estate Funds Adds More Than $800 Million in Real Estate in 2008

The investment portfolios of Wells Real Estate Funds, one of the nation’s top real estate investment companies, acquired more than $830 million in office properties in 2008, covering more than 3.2 million square feet.

 
Despite the tightened commercial real estate market, Wells acquired more square footage than the year before, when Wells portfolios purchased more than 2.6 million square feet of office space.

 
“The credit crisis triggered a sharp drop in transaction volume in commercial real estate, particularly in the second half. Despite that, we managed to have another good year,” said Leo Wells, president and CEO. “We’re known as a low-leverage buyer of office properties - and that worked to our advantage in a tight credit market.”

 
Major acquisitions included three significant transactions in Atlanta: a million-square-foot AT&T campus in Atlanta’s Buckhead area, two more AT&T buildings along the city’s MARTA commuter rail line at Lindbergh Center, and Newell Rubbermaid’s new global headquarters building in Sandy Springs, Ga., just north of the city. Other acquisitions included WestQuest Technology Park, a 315,000-square-foot property fully leased to Northrop Grumman in suburban Baltimore, and a 230,000-square-foot property fully leased to Wells Fargo (not affiliated with Wells) in Milwaukee. Each was acquired by Wells Real Estate Investment Trust II, Wells’ flagship investment program, which now has a portfolio of 83 buildings with more than 20 million square feet nationwide.

 
“Even in a difficult climate, we were able to stick to our ongoing strategy - high-quality properties leased long-term to high-quality, highly creditworthy tenants,” said Don Henry, chief real estate officer. “We felt very good about being able to make quality acquisitions as the deal flow slowed significantly.”
Wells investment programs include REITs, mutual funds and other commercial real estate investment vehicles. Wells’ building portfolios now include a total of more than 23 million square feet of space in 117 buildings, primarily Class-A office properties, geographically diversified across 27 states and Washington, D.C.

 
Across its funds, Wells’ office portfolio is more than 96 percent leased. For the second straight year, Wells signed more than 1.2 million square feet in new and renewal leases in 2008 - including more than 950,000 square feet in Wells REIT II. Wells faces a relatively light rollover schedule over the next two years, as less than 6 percent of REIT II’s properties come up for renewal.

 
Wells Real Estate Funds ranks among the nation’s top 20 office owners, as ranked by National Real Estate Investor. The company also marked another milestone in 2008 - its fourth appearance in the Atlanta Business Chronicle’s “Best Places to Work” rankings.

 
Wells Real Estate Funds is a national real estate investment company based in suburban Atlanta. Since its founding in 1984, Wells has invested more than $12 billion in real estate for more than 250,000 investors. For more information, see www.wellsref.com. For more information on Wells REIT II, see www.wellsreitII.com.

 
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Readers of this press release should be aware that there are various factors that could cause actual results to differ materially from any forward-looking statements made in this release. Factors that could cause or contribute to such differences include, but are not limited to, changes in general economic and business conditions, industry trends, changes in government rules and regulations (including changes in tax laws), and increases in interest rates. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The identifier “Wells Real Estate Funds” is used generally in this communication, and not always in reference to Wells Real Estate Funds, Inc. The portfolios referenced are separate entities, as explained in the products’ prospectuses. This is neither an offer nor a solicitation to purchase securities. Such an offer can be made only by prospectus. For a prospectus, contact Wells Investment Securities, Inc., 6200 The Corners Pkwy., Norcross, Ga. 30092-3365 (tel. 800-448-1010). SEC filings: www.wellsref.com/investmentproducts/reit/secfilings.html.

 
EDITORS NOTE: Don Henry, Wells’ chief real estate officer, is available for interviews on trends in office real estate.

© Business Wire 2009

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Josh Hamilton, 212-843-8304