IRVINE, CA-Hines has financed its acquisition of a future office development site with a $15.5-million bridge loan for a 6.25-acre property next to its 2211 Michelson Dr. office tower, according to Newport Beach-based Buchanan Street Partners. The site is entitled for 200,000 sf of commercial development, according to Hines, which is developing a 266,000-sf office project at the 2211 Michelson Dr. site in a joint venture with Crescent Real Estate Equities.

Hines says that it has not decided what it will build on the property, which is occupied by a 120,000-sf industrial building at 18582 Teller Ave., but the development firm says that it plans to raze the existing building for a new development after the tenant vacates in early 2007. EVP Tim Hawthorne of Buchanan Street reports that the non-recourse loan provides "a creative financing structure that could accommodate the opportunity for multiple business plans."

The valuable project location and the sponsorship by Hines were among the keys to the financing, according to Hawthorne. He notes that the financing was underwritten and closed in less than 30 days.

GlobeSt.com has reported previously that Hines was attracted by the Teller Avenue property's location near the intersection of Jamboree Road and Michelson Drive in the Irvine Business Center. The company is reviewing possible developments for the site and expects to announce project plans late this year or early next year, according to Doug Holte, western regional partner and director of Hines' Orange County and San Diego operations.

The existing building on the new Hines property is occupied by Cisco-Linksys, a division of Cisco. Hines acquired the parcel from Cigna Realty Investors, with Hines represented by David Whitney of Lee & Associates and the seller represented by Steve Schloemer and Patrick Remolacio of Colliers International.

The adjacent 2211 Michelson building is a 12-story tower that is slated for completion in 2007. The joint venture of Houston-based Hines and Fort Worth-based Crescent Real Estate Equities that is building the project is called Hines/Crescent Irvine.

The Michelson Drive site, which was a surface parking lot before the joint venture acquired it for development, has been planned for some time. It is the location of a fourth and final office building for the Von Karman Towers campus.