Hines Buys Back One Ravinia Dr.

Hines representatives didn't disclose the acquisition price except to say in a prepared statement the asset was purchased "at 65% of replacement cost." Area brokers familiar with the 30-million-sf Central Perimeter office submarket, where One Ravinia Dr. is located, tell GlobeSt.com the 20-year-old, 95%-leased, 383,606-sf building probably went for about $285 per sf or an estimated $109 million. Hines officials say "the speculation of $285 per sf is way off. We are not giving out any financials on the acquisition."

Hines' George Lancaster tells GlobeSt.com the deal took 17 days to complete, from contract signing to closing.

Hines vice president Kurt Hartman calls the deal "an excellent acquisition with significant upside potential." He says "departing tenants will increase vacancy in November of this year, creating a value-added opportunity for the fund." Hines has managed and leased the property since it was developed and will continue to do so.

Hartman notes the Central Perimeter submarket is "Atlanta's dominant suburban [office] submarket and in 2004 experienced over a million sf of positive absorption." Hines officials didn't disclose why the deal was done at this time.

The 17-story One Ravinia Dr. is part of the three-building Ravinia development. The property has access to the Crowne Plaza Hotel, the Ravinia Club and the nearby 1.4 -million-sf, 42-year-old Perimeter Mall. The building's tenant roster include Mariner Health Care, Down, Lohnes & Albertson PLLC and Watson Wyatt & Co.

Kevin Roche, John Dinkeloo & Associates designed One Ravinia Dr. Eastdil Realty represented the Germany-based seller in the transaction.