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.

KBS Selling Dallas Cowboy's Distribution Center

Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd., has purchased the Dallas Cowboy's Distribution Center, a 400,000-square-foot facility near Dallas/Fort Worth International Airport, from KBS Real Estate Investment Trust II for $22.3 million. KBS began marketing the single-tenant logistics facility earlier this year after owning the property's ground lease to the distribution center since July 2010, when it purchased the building and 40-year ground lease for $19 million. The sale of the building, which is 100 percent leased to the Cowboys, won't become finalized until after the real estate transaction closes, according to a Dallas Business Journal article. If the deal doesn't go through, Invesco could forgo $200,000 in earnest money.

The property sits on 21.2 acres of land at 2500 Regent Blvd. with major tenants including Aviall/Boeing, Amazon.com, Pratt & Whitney, DHL and DB Schenker. Jack Fraker, Josh McArtor, Jonathan Bryan, and Heather McClain Venegoni of CBRE will market the Cowboys Distribution Center along with the National Partners Team, local market experts in each location and Scott Lewis, an expert in CBRE’s Debt & Structured Finance group, according to a GlobeSt.com report.

For more news and information visit Blumberg Capital Partners.