Hines JV Buys 248,000-SF Corporate Center
SANDY, UT-International real estate firm Hines has joined with a subsidiary of a real estate fund managed by Oaktree Capital Management L.P. to acquire South Towne Corporate Center from KBS Realty Advisors. The parties involved would not reveal the sale price, but industry sources unrelated to the transaction report it to be $44.5 million. KBS was represented in the transaction by Eastdil Secured.
The two-building, six-story, 248,352-square-foot, class-A office complex is located off I-15, 15 miles south of downtown Salt Lake City and the Salt Lake City International Airport. The property is 99% leased to tenants including Cadence, CoreLogic, E*Trade, New York Life and Seamless, and Hines has assumed property-management responsibilities on behalf of the joint venture.
The center is composed of 150 Civic Center Dr., a 124,046-square-foot building completed in 2000, and 200 Civic Center Dr., a 124,306-square-foot building completed in 2006. Each building has an adjacent parking structure with a total of 592 stalls, plus surface parking for an additional 733 vehicles.
“As evidenced by its tenancy, architecture and location, South Towne Corporate Center is a best-in-class asset in the growing Sandy South Towne submarket,” said Hines director Dusty Harris in a prepared statement. “Hines is pleased to expand its presence in Utah, and we will continue to seek acquisition and development opportunities in the area.”
Harris tells GlobeSt.com that the plan going forward is to renew existing tenants and lease vacancy and that there are no major repositioning plans for the property.
This is the second asset purchased by the Hines/Oaktree venture. In 2011, it purchased Alton Corporate Plaza, a two-building office property in Irvine, CA. As GlobeSt.com previously reported, in June a joint venture between real estate investor and developer Michael Rosenfeld, through an affiliate of his Woodridge Capital Partners and an investment fund managed by Oaktree purchased Colony Palms Hotel in Palm Springs, CA, for $15 million. The seller of the 57-room boutique hotel, restaurant and spa was Pacifica Colony Palms LLC, an affiliate of Pacifica Capital Group. And in May, Hines formed a fund to invest more than $1.1 billion into properties in Russia and Poland. The Hines Russia & Poland Fund, based in Luxembourg, has already allocated equity to two outlet malls and a big box development in St. Petersburg and Moscow.
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