JV Buys Santa Ana Office Building

A joint venture between Hines, the international real estate firm, and Oaktree Capital Management announced this week that it had purchased 1750 East Fourth Street in Santa Ana, California for an undisclosed price. The JV acquired the property in a sale and lease back deal with State Compensation Insurance Fund, California's largest provider of workers' compensation insurance. The seller was represented in the transaction by Rob Bickel, Patrick Inglis and Thomas Maloney of JLL.

Hines Managing Director Ray Lawler, who leads the firm's Orange County development and investment office, said, "Orange County is projected to be among the highest rent-growth markets in the U.S. over the next five years. This property provides us the opportunity to add significant value through leasing and the continuing improvement of Orange County's market fundamentals."

Oaktree Capital Management Managing Director Ambrose Fisher added, "We are happy to begin a long-term relationship with State Compensation Insurance Fund, and we look forward to adding 1750 East Fourth Street to our Orange County real estate holdings. This is our 10th project with Hines in Orange County and our 18th with Hines globally."

The 229,989-square-foot, eight story Class A office building was originally developed in 1994 on 2.8 acres, with immediate access to the 5 and 55 Freeways. Under the terms of the deal, State Compensation Insurance Fund will lease back roughly 50% of the square footage via a long term lease, with the remaining 50% available for lease. Hines has assumed on-site property management responsibilities on behalf of the joint venture, according to a Commercial Property Executive article.

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