CalPERS Fund Buys LA-Area Buildings from Hines for $550M

TechCore, a fund managed by GI Partners, has purchased One Wilshire, a 30-story Class A telecom and office building in downtown Los Angeles, as well as three buildings in the L.A. suburb of El Segundo, for a total of $550 million.

HINES bldgTechCore L.L.C., a fund managed by GI Partners, has purchased One Wilshire, a 30-story Class A telecom and office building in downtown Los Angeles, as well as three buildings in the L.A. suburb El Segundo, for a total of $550 million, GI Partners and the seller, Hines Real Estate Investment Trust Inc., announced Tuesday.

The $1 billion discretionary core real estate fund is managed by GI Partners, of Menlo Park, Calif., on behalf of the California Public Employees’ Retirement System.

One Wilshire, in downtown L.A., features 663,000 square feet of data center/telecom, office, storage and retail space with a five-level underground parking garage. Designed by Skidmore, Owings & Merrill, it was acquired by Hines REIT in 2007.

The property is 93 percent leased to tenants including Verizon Communications, CRG West, Quest Communications, CoreSite, Crowell Weedon and Musick Peeler.

GI Partners touted the property as “a premier carrier-neutral telecommunications center providing connections to more than 300 domestic and international voice and data service companies.”

“The property fits well with TechCore’s strategy of acquiring high-quality, core, technology-advantaged properties leased to market-leading tenants,” Michael Wong, vice president of GI Partners, said in a release.

TechCore/GI Partners also acquired 2200, 2222 and 2230 East Imperial Highway in El Segundo, near Los Angeles International Airport. The 550,579-square-foot complex comprises two 11-story Class A office towers, plus a parking structure with two floors of office at the top.

The two office buildings are known as the Raytheon and DIRECTV buildings, for the companies to which they’re fully leased on a long-term basis. Hines REIT acquired the complex in 2008.

Eastdil Secured represented Hines REIT with respect to One Wilshire, and CBRE represented the seller with respect to the buildings in El Segundo.

GI Partners and CalPERS formed TechCore in early 2012 to acquire technology-advantaged properties, including data centers, internet gateways, corporate campuses for technology tenants and life science properties located in core MSAs and leased to industry leading tenants.