Hines REIT Pays $140M for Utah Corporate Center

Hines Global REIT II, Inc. has agreed to pay $140 million for Cottonwood Corporate Center, a four-building, Class-A office project located in Cottonwood, Utah. The property is being sold by NOP Cottonwood Holdings, LLC, according to an SEC filing. Hines Global II expects the closing of this acquisition to occur on or about June 10, 2016, subject to a number of closing conditions.

This isn't the first time Hines has had an interest in the property; in 2005, the Salt Lake City office of Hines acquired Cottonwood Corporate Center on behalf of National Office Partners Limited Partnership (NOP), its investment partnership with the California Public Employees' Retirement System (CalPERS), from Cottonwood Partners for an undisclosed amount.

Located at 2755-2855 East Cottonwood Parkway, Cottonwood Corporate Center was originally designed by Giles Stransky Brems Smith and built between 1997 and 2000 to offer 490,030 square feet of rentable space. The CommonWealth Partners property management team began retrofitting the Cottonwood Corporate Center in 2012 to increase its already impressive ENERGY STAR® score of 94 and winning a 2015 Mid-Rise Suburban Office Park Toby Award. According to the filing, the property was 91% leased at the time of sale with major tenants including SanDisk and Extra Space Storage. The complex is in a submarket of Salt Lake City, situated at the base of Big Cottonwood and Little Cottonwood canyons, and is in close proximity to Salt Lake International Airport.

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