SANTA ANA, CA—Hines, working with a fund managed by Oaktree Capital Management, has acquired 1750 East Fourth Street, a 229,989-square-foot, class A office building here. Financials on the sale and lease back with State Compensation Insurance Fund were not disclosed. State Compensation was represented in the transaction by Rob Bickel, Patrick Inglis and Thomas Maloney of JLL.

Completed in 1994 the building is on 2.8 acres, with immediate access to the 5 and 55 Freeways, the eight-story building is located within the Orange County submarket and has convenient access to the major the Los Angeles, Orange County and Inland Empire employment hubs. State Compensation Insurance Fund will lease back approximately 50% of the square footage via a long term lease. The remaining 50% of the square footage is available to lease immediately.

Hines managing director Ray Lawler, who leads the firm's Orange County development and investment office, said, “Orange County is projected to be among the highest rent-growth markets in the U.S. over the next five years. This property provides us the opportunity to add significant value through leasing and the continuing improvement of Orange County's market fundamentals.”

Oaktree managing director Ambrose Fisher added, “We are happy to begin a long-term relationship with State Compensation Insurance Fund, and we look forward to adding 1750 East Fourth Street to our Orange County real estate holdings. This is our 10th project with Hines in Orange County and our 18th with Hines globally. ”

Hines has assumed on-site property management responsibilities on behalf of the joint venture.

Oaktree is a leader among global investment managers specializing in alternative investments, with $86.2 billion in assets under management as of March 31. Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide.