Oaktree Affiliate, NFR Buy Office Properties for $240M

An affiliate of Oaktree Capital Management LP has acquired, in partnership with National Financial Realty Inc., a 40-building office property portfolio for $240 million from First States Investors B LP.

The off-market acquisition was done at a 50% discount to replacement cost, John Brady, managing director and head of global real estate at Oaktree, said in a press release.

The 3.4-million-square-foot portfolio is 90% leased to Wells Fargo and includes “mission critical facilities” and branch offices in eight states: North Carolina, South Carolina, Virginia, Florida, New Jersey, Pennsylvania, Maryland and Georgia.

North Carolina constitutes the largest share of the portfolio with eight buildings totaling 1.2 million square feet including a 450,000-square-foot regional operation center in Raleigh and a total of 616,000 square feet in Winston-Salem.

Pennsylvania represents the second largest state concentration in the portfolio with five buildings that comprise 600,000 square feet, including an almost 500,000-square-foot regional operations center in Philadelphia.

Vincent E. Pellerito, president and CEO of NFR, said in a press release that the acquisition expands his company’s relationship with Wells beyond its current ownership of Wells’ operation and data center in Hillsborough, Ore.