AT&T Enters $29 Million Sale leaseback of Office Building Near Milwaukee

GlobeSt.com - March 14, 2007

Inland has confirmed that a subsidiary it has purchased the AT&T Pewaukee office building for $29 million, in the company’s third sale-leaseback transaction with the telecom provider. Joe Cosenza, president of Inland Real Estate Acquisitions Inc., negotiated the Pewaukee transaction, as well as the $205 million purchase of One AT&T Center in St. Louis at the end of December.

At the Pewaukee building, AT&T Services Inc. will continue to be the sole occupant of the 117,000-sf facility, which is on more than 11 acres. The building houses a call center, a training facility, a sales and marketing center and a real estate department. Cosenza tells GlobeSt.com that the company signed a 25-year lease, but has the option to leave the building after 10 years. The company is paying $12 per sf for rent, he says.

Inland also owns the 1.7 million-sf AT&T Center property in Hoffman Estates, IL, purchased in November 2005 for $338 million. Cosenza also brokered that deal.

AT&T has been closing many sale-leaseback deals as of late, including the sale-leaseback of its headquarters property in Bedminster, NJ to MetLife Inc. for $270 million in December 2006. The telecom company also completed the sale and partial leaseback of Sterling Commerce Plaza, a 308,554-sf office building in Irving, TX with Wells Real Estate Funds.

An AT&T spokesperson describes the sale-leasebacks as part of the company’s ongoing real estate strategy. Sphere: Related Content