Hines Sells Sacramento Tower for $166M
- Feb 26, 2020
Singaporean capital has landed in the U.S. real estate market again, with a U.S. REIT listed in the Asian city-state snapping up a Class A office tower in downtown Sacramento, Calif., for $165.5 million. Prime US REIT acquired the 24-story, 489,171-square-foot Park Tower in concert with commercial real estate investor KBS, which serves as the U.S.-based asset manager of the REIT’s portfolio.
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Built in 1992 and renovated last year, the LEED Gold-certified tower at 980 9th St. is located within walking distance of California’s state capitol and other downtown landmarks. Hines Interests acquired the asset from CIM Group for $120.5 million in August 2017 and has served as the leasing manager of the building, according to Yardi Matrix.
CIM in turn acquired Park Tower from Nuveen Real Estate in a portfolio sale in 2009, after the asset was previously owned by Shorenstein and Grosvenor. Grant Lammersen, Steve Golubchik and Tyler Myerdirk of Newmark Knight Frank brokered the latest deal. KBS identified and sourced the asset on behalf of the $1.3 billion Prime US REIT portfolio, which included 11 prime office properties totaling 3.4 million square feet nationwide as of year-end 2019.
Growing in California’s capital
The move comes after Singapore’s Keppel Capital teamed up with KBS and other investors to launch Prime US REIT on the Singapore Exchange in August 2019. KBS and Keppel previously partnered to list the Keppel-KBS US REIT in Singapore in 2017.
Park Tower is 92 percent occupied and includes 11,500 square feet of ground-floor retail. The high-rise includes a parking area that was built in 1961 and renovated in 1998, as well as on-site amenities such as a conference center, tenant lounge and newly refurbished fitness center with locker rooms.
The Sacramento office market has less than 5 percent Class A vacancy and no new projects under construction in the downtown, Newmark Knight Frank reported in the fourth quarter of last year.
Singaporean investors have been active in the U.S. real estate market recently, with Ascendas Real Estate Investment Trust agreeing to buy 3.8 million square feet of U.S. business park assets as part of a $2.1 billion deal last October, while Singapore’s Mapletree Investments inked $1.4 billion in U.S. data center acquisitions from Digital Reality in September.