Hines JV Buys 4000 MacArthur

Hines, the international real estate firm, announced this week that along with a subsidiary of a fund managed by Oaktree Capital Management it had purchased 4000 MacArthur in Newport Beach, California. The sale price or terms of the deal for the two ten-story buildings were not disclosed, but it is known that a previous owner, Tishman Speyer Properties, was marketing the property in 2007 and expecting to fetch around $170 million; Tishman paid KBS about $134 million, or $365 per square foot, for the two office towers in 2006. In 2011 Emmes reportedly bought a $40 million junior portion of a $100 million mortgage tied to the property for 80 cents on the dollar and moved to foreclose on the property from Tishman, according to an Idea Hall article.

Hines Managing Director Ray Lawler, who leads the firm's Orange County development and investment office, said, "4000 MacArthur's location, access, visibility, quality improvements, and credit tenancy make this a particularly attractive acquisition for Hines and Oaktree. We expect the exceptional top floor vacancy, creative speculative suites, and prominent building top and monument signage will draw additional premier tenants to our project."

Oaktree Managing Director Ambrose Fisher added, "4000 MacArthur is our eleventh project with the Hines Orange County team. We now own 2.8 million square feet in Orange County that we have taken from 65 percent leased at acquisition to nearly 90 percent leased today. Globally, we have purchased 21 office deals in the US and the United Kingdom with Hines, totaling 8.2 million square feet. With the addition of 4000 MacArthur to our portfolio, we look forward to owning two of the best buildings in Orange County."

The property was roughly 91% leased at the time of sale to twelve tenants, including: Hyundai Capital America, M/A-COM Technology Solutions Holdings, Lifescript, and Premiere Business Centers. Hines has assumed on-site property management responsibilities on behalf of the joint venture.

For more news and information visit Blumberg Capital Partners.

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.

For more news and information visit Blumberg Capital Partners.