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. Last Updated: 07/27/2016

U.S. Trust Buys Office Tower

U.S. property investment vehicle Wells Real Estate Investment Trust II announced its first foray into the international real estate market last Tuesday with the acquisition of nine-story office tower in central Moscow.

The investment trust has signed a joint venture with Russian developer Moscow Office Real Estate to own Tower B at Dvintsev Business Center.

"Moscow ... has less office space per capita than any major capital – and a Class-A vacancy rate of around 3 percent," said Parker Hudson, managing director and lead Wells representative on the transaction.

The Dvintsev Business Center Tower B will eventually include 136,000 rentable square feet and is scheduled for completion in late 2008. No details of the amount invested were released.

"This would be a fine office building anywhere in the world – but this one happens to be in a city of 14 million that is desperately short of Class-A real estate," said Darrell Stanaford, Russia country manager for CB Richard Ellis, which advised Wells on the investment and will assist in leasing the property, along with Jones Lang LaSalle. "We think that in five to seven years this area is going to be one of the most significant office submarkets in the nation," Stanaford said.