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Hines REIT Sells Tallest Building In Sacramento for $175.5 Million

Starwood Capital Acquires Trophy Property in Largest Single-Asset Office Transaction in Sacramento Since 2007
November 17, 2016
Hines Interests, LP has sold the 30-story, 508,402-square-foot Wells Fargo Center in downtown Sacramento to Starwood Capital Group for $175.5 million.

The sale by the Hines Real Estate Investment Trust, Inc. (Hines REIT) core fund of the tower at 400 Capitol Mall, which the company lists as 85% leased, is the largest sale of a single office asset in the Sacramento since Hines acquired the property in May 2007 for $224 million, according to CoStar data.

At 429 feet, the building is the tallest in Sacramento. Its largest tenants include law firm Orrick Herrington & Sutcliffe; Wells Fargo Bank, Morgan Stanley Wealth Management and Cushman & Wakefield, which is the primary leasing representative for the asset.

The core fund recorded impairment losses of $66.6 million on Wells Fargo Center, Renaissance Square in Phoenix and several other assets since "such long-lived assets had carrying values that exceeded their fair values based on a purchase and sale agreement or third-party guidance received during its marketing process," according to an SEC document filed by Hines REIT this week.

Please see CoStar COMPs #3753455 for more information on the transaction.

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