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New Hines Fund Closes on First Acquisition

Investor Takes Back Office Bldg It Developed in Phoenix
January 8, 2013
International real estate firm Hines has acquired its first investment through the new Hines US Office Value Added Venture III (VAV III) -- the 24th at Camelback I, located at 2375 E. Camelback Rd. in Phoenix, AZ -- from GLL Real Estate Partners for an undisclosed price.

The eight-story, 302,209-square-foot, class A office tower was designed by Pickard Chilton and developed by Hines in 2000. Hines sold the asset in late 2005 for $107 million, according to CoStar data, and has managed it since completion. The property is located at the southwest corner of 24th Street in the Camelback Corridor submarket of Maricopa County. The building has received LEED Gold certification, nine Energy Star labels, and was awarded the TOBY Award for Office Building of the Year in 2011 by BOMA Greater Phoenix.

"We are very pleased with our investment experience with this asset," said Christopher Quiett with GLL, which has owned the property since May 2006. "I think we had a significant impact on both the building and in operations during our stewardship, and we anticipate that companies located at 24th at Camelback will see even more positive impacts under Hines’ ownership. They are an excellent company."

The Hines US Office VAV III closed in August 2012 capitalized with $210 million of equity for more than $600 million of total leveraged capacity to target investments where the firm can create value through leasing, management and redevelopment.

According to Dave Congdon, senior managing director and fund manager for Hines, "We are very pleased with the acquisition of such a high-quality building in Phoenix’s Camelback Corridor. This asset is well positioned to capitalize on the continued recovery in the Greater Phoenix market."

Jeffrey Hartland and Scott Boardman with Cassidy Turley Arizona represented the seller along with Eastdil Secured LLC. The buyer was represented in-house.

Please see CoStar COMPS #2625157 for additional information on this transaction.

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