The Value-Added fund took 1.1 million sf in 17 suburban buildings in nine projects located in the South Natomas, Point West, and Campus Commons submarkets. The Core fund took 1.4 million sf in 15 buildings in six projects in the central business districts of Sacramento and Roseville. Hines Interests LP, the Houston based sponsor of both the REIT and the fund, will handle the fee-based leasing and management assignments.

The price paid by the Value-Added fund has not been publicly released. However, multiple sources have put the overall cost of the transaction at $750 million, and the Core fund's piece was acquired for $490.2 million (exclusive of transaction costs, financing fees and working capital reserves) in cash and debt, according to SEC filings by Hines REIT, a subsidiary of which owns a stake in the Core fund.

Jason Goff and Drew Petersen with Jones Lang LaSalle in Sacramento assisted Eastdil Secured in marketing the portfolio on behalf of Blackstone. Goff told Globest.com in Aprilthat the EOP portfolio is an exception to the high overall vacancy rates in the Sacramento area.

"We have 14 percent to 15 percent vacancy rates but if you look at the buildings (the funds) bought, I'll bet the vacancy is between 2 percent and 10 percent," Frisch says. "Vacancy is actually going up here because we've had a tremendous amount of new construction -- 10 million sf in the last four years -- but approximately 75% of the total is small buildings aimed at the owner-user market, which offers less competition (to the EOP portfolio), so the vacancy numbers are deceptive."