Hines and GE Buy 309,705-sf Office Project

The buyers acquired the property from Manhattan Beach Towers LLC, a partnership of Divco West Properties and Charlesbank.

The Manhattan Towers complex is close to Los Angeles International Airport, the recently renovated Manhattan Village Shopping Center and Manhattan Village Country Club. It includes two six-story Class A office buildings and marks the first acquisition for the Hines/GE Real Estate venture.

Referred to as the Hines Suburban Office Venture (HSOV), the partnership acquires suburban office properties throughout the United States. HSOV has a total equity capital commitment of $222 million from GE Real Estate and various Hines entities, with a targeted portfolio size of $650 million.

Stephen Hoover, SVP of GE Real Estate, says the transaction represents the first of many anticipated closings. He noted that the deal closed "at an accelerated schedule" to accommodate the seller. Hines SVP Douglas Holte says the company was attracted to the property for its "outstanding demographics and premier amenities."

The Manhattan Towers were designed by Herbert Nadel and were constructed in 1985. The buildings feature concrete and glass exteriors for unencumbered views from all directions. Floor plates average 27,000 sf, and parking for 1,032 cars is provided in a three-level parking structure below the buildings, as well as on a surface lot.

The project is 81% leased to TRW Inc.; Reback, McAndrews & Kjar LLP; Robeks; Manhattan Beach Unified School District; and additional corporate tenants. Todd Later of Hines says two full floors, totaling 60,000 sf, are being actively marketed.

Hines has been a real estate developer and manager in Southern California since 1988. The firm manages and/or owns approximately three million sf in the Greater Los Angeles area. Privately owned Hines develops, acquires, leases and manages real estate in addition to providing investment management and advisory services. The Hines portfolio of projects completed and underway includes 700 properties, representing 223 million sf of office, mixed-use, industrial, hotel, sports facilities and residential properties. With offices in 74 U.S. cities and 11 foreign countries, the firm controls assets valued in excess of $13 billion.

GE Real Estate is a business unit of GE Commercial Finance. The firm is headquartered in Stamford, Conn., and has a portfolio of approximately $30 billion in assets and more than 30 offices throughout North America, Europe and the Pacific Rim.