The One Wilshire property, at South Grand Avenue and WilshireBoulevard, also includes retail space and a five-level subterraneanparking garage for 524 cars. Owned by the Carlyle Group and managedby Carlyle subsidiary CRG West since 2001, it was completed in 1966and underwent a major renovation in 1992 that consisted primarilyof telecommunication networks upgrades.

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The One Wilshire building is one of the country's largesttelecommunications switching centers and is 99% leased, with 62% ofthe property occupied by communications companies including VerizonCommunications, CRG West, Savvis/Level 3, Global Crossing, QwestCommunications and Pac-West. Charles Hazen, president of HinesREIT, calls it "one of the world's premier telecommunicationsassets."

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Carlyle's CRG West subsidiary is one of the largest managers ofnetwork-neutral data centers in the US. CRG is the largest tenantat One Wilshire and occupies more than 170,000 sf under a leasethat runs through June of 2017.

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Thomas M. Ray, managing director of the Carlyle Group, says thatthe combination of first-class office space and "an incredibledensity of global carriers" makes One Wilshire a unique asset.According to John Savageau, managing director of CRG West, the saleof the One Wilshire building will allow CRG West to focus on itscore competency in power and network operations.

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Colin Shepherd, Hines senior vice president, points out that theacquisition comes at a time of extensive infrastructure and amenityimprovements in Downtown Los Angeles, where Hines has had apresence for more than 20 years. Hines financed the acquisitionwith proceeds from the company's current public offering andborrowings under its revolving credit facility with KeyBankNational Association.

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In addition to telecommunications tenants, the major occupantsof One Wilshire include Musick, Peeler & Garrett LLP, anational law firm that leases 106,475 sf under a lease that expiresin October 2018 and includes options to renew for two additionalfive-year periods. The Carlyle entity that sold the building wasCarlyle One Wilshire II LP, a subsidiary of the Carlyle Group,which was represented by Eastdil-Secured.

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