In the negotiation, AEW Capital management was represented by Cushman & Wakefield, and Hines represented Hines REIT. Hines is the sponsor of Hines REIT, and is responsible for the management and leasing of its assets. "The acquisition of 3 Huntington Quadrangle will further enhance the Hines REIT portfolio with the building's ideal location in the highly sought after Long Island marketplace," says Charles Hazen, president of Hines REIT.

3 Huntington Quadrangle is composed of two four-story buildings totaling approximately 408,000 rentable sf of office and retail space, and they are connected by a central lobby. The property, constructed in 1971, underwent a major renovation in 1999, which included upgrades such as a newly designed lobby entrance and refurbished public corridors and elevators. Surface parking for 1,500 cars is provided.

The property is 83% leased to tenants including Empire Blue Cross Blue Shield, Cigna, Cendant, Sovereign Bank and St. Paul Travelers. "We are extremely pleased to have been retained by Hines to continue the leasing and marketing program of this fine asset," says Robert Seidenberg, SVP at CB Richard Ellis. "With its great infrastructure, strong tenant base and prime location, we believe 3 Huntington Quadrangle will prove to be a great investment for Hines."

Hines VP Bart Swenson notes that this is an opportunity for the company to add value through improving building operations and the tenant experience by "implementing a substantial capital improvement program focused primarily on upgrading the property's mechanical and electrical systems."

Andy Merin, vice chairman of Cushman & Wakefield, who handled the sale of the building said that this deal validates the continued institutional interest in Long Island commercial real estate.

Instant Insights /

Hines REIT Gets Office Complex for $87M

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