Deal is Among Richest Prices per Sq. Ft. Paid for Los Angeles CBD Property
Hines REIT has sold three office buildings, including the One Wilshire carrier hotel in downtown Los Angeles and two in El Segundo, CA, for a total of $550 million.
GI Partners, a private equity investment firm, acquired the properties through TechCore, LLC, a $1 billion discretionary core real estate fund managed by GI Partners on behalf of the California Public Employees' Retirement System (CalPERS).
One Wilshire, a 30-story office building which contains 663,000 square feet of telecom and office space, was acquired by Hines REIT in 2007. The Class A property, one of the top Internet and telecommunications hubs in the West, is 93% leased to companies including Verizon Communications, CRG West, Quest Communications, CoreSite, Crowell Weedon and Musick Peeler.
The purchase price of $437.5 million, or $659.88 per square foot, is among the top prices paid per square foot for a downtown office tower.
The other buildings include the Raytheon and DIRECTV buildings, a three-building office complex in the South Bay submarket of El Segundo. The 11-story Class A buildings contain a total of 550,579 square feet and were acquired by Hines REIT in 2008. The buildings are fully leased to their namesake companies on a long-term basis.
"We believe it is an appropriate time to exit our position in the One Wilshire and the Raytheon and DIRECTV buildings, and we are pleased to execute a single transaction for all the assets to a high-quality buyer," said Sherri Schugart, president and CEO of Hines REIT.
Eastdil Secured represented the seller in the One Wilshire deal and CBRE represented the seller in the El Segundo transaction.
Please see CoStar COMPS #2790819 for more information on this transaction.