A unit of Hines Real Estate Investment Trust Inc. (Hines REIT) agreed to buy the Howard Hughes Center, a five-building office complex in Los Angeles totaling more than 1.3 million square feet, from Blackstone Group LP for $506 million.
Hines REIT Properties LP put a $60 million nonrefundable deposit on the deal and expects to complete the purchase by Jan. 15, the company disclosed in a regulatory filing. The portfolio under contract includes buildings at 6080, 6060, 6701, 6100 and 6601 Center Drive.
The buildings, located near the Howard Hughes Promenade shopping center, were built between 1987 and 2002 and consist of 1,318,682 square feet of rentable area which is 88% leased to 93 tenants. None of the tenants leases more than 10% of the net rentable area.
Blackstone and Brookfield Office Properties Inc. (NYSE: BPO
) acquired the buildings in 2006 as part of a 42-property portfolio from Trizec Properties Inc. for $7.2 billion.
New York City-based Blackstone earlier this year sold seven other Los Angeles area properties acquired from Trizec to Prudential Financial Inc. Blackstone, which raised a $13.3 billion acquisition fund in 2012, is selling trophy office properties and investing in industrial, retail, hotel and single-family rental properties.