Hines REIT Adds Pair of Properties to L.A. Portfolio for $120M
- Mar 20, 2008
Adding to its Los Angeles-area holdings, Houston-based Hines REIT purchased the Raytheon and DIRECTV buildings, which make up a two-building office complex in El Segundo, Calif., for $120 million. The buildings were purchased from Newkirk Segair L.P., which was represented by Eastdil Secured in the transaction. Hines is the sponsor of Hines REIT, and is responsible for the acquisition, management and leasing of its assets. Located near the Los Angeles International Airport, the two-building property is situated on a 6.14-acre site and includes 550,000 rentable square feet in two 11-story Class A office buildings, including two levels of office space on top of the 10-story parking garage. The complex was completed in 1976 and features a distinctive mirrored glass façade, state-of-the-art building systems and a landscaped courtyard. The property is fully leased by the anchor tenants–Raytheon’s Space and Airborne Systems and DIRECTV Group Inc. Hines has acquired more than 2.6 million square feet valued at more than $1 billion in Los Angeles County within the past 18 months. On Nov. 20, CPN reported on Hines’s $225 million acquisition of 12100 Wilshire Blvd. acting through its Hines U.S. Office Value Added Fund II L.P. Hines already has a strong presence in the Greater Los Angeles area, having entered the market two decades ago with the development of a 1 million-square-foot project in downtown Los Angeles at 601 S. Figueroa St.; Hines and joint venture partner Deutsche Immobilien Fonds AG sold that property two years ago to Trizec Properties Inc. for nearly $357 million. Currently, the company’s portfolio in the Los Angeles area includes the 664,000-square-foot property at One Wilshire, which Hines acquired from the Carlyle Group for $287 million in August.