NEWTON, MA-Hines Global REIT Inc. on Tuesday said it had acquired Riverside Center, a 510,000-square-foot office complex, from Equity Office. According to an SEC filing, the REIT is paying $197.3 million for the complex, which is 97% leased to 19 tenants.
The acquisition was funded with proceeds from Hines Global’s revolving credit facility and proceeds from a $150-million bridge loan from JPMorgan Chase Bank, according to the SEC filing. The loan requires interest at LIBOR plus a margin of 1.75%, ranging up to 2.75%, and has a term of 60 days, with an option to extend the maturity date for 30 days.
Completed in 2000, Riverside Center is located at 275 Grove St. in Newton. It comprises three separate four-story buildings connected by a pair of full-height glass-enclosed atria. The tenant roster includes the world headquarters of e-publishing company Tech Target and pharmaceutical giant McKesson. Hines will manage the property on behalf of Hines Global REIT.
This is Hines Global’s third acquisition in the Boston area. In 2011, it acquired 250 Royall in Canton, MA, and the Campus at Marlborough in Marlborough, MA.
“Boston is a market that Hines Global REIT has targeted for investment because of its diverse economy and highly educated workforce,” Sherri Schugart, president and CEO of Hines Global, says in a release. “Riverside Center is a well-located, quality asset with strong tenancy that will fit well within our portfolio.” HFF brokered the sale on behalf of Equity Office.