Hines Pays $38M for Office Asset

IRVINE, CA-Hines Global REIT, a public REIT sponsored by international real estate firm Hines, has acquired 2300 Main, a five-story, class-A office building, from Von Karman-Irvine Associates LLC. Hines has confirmed with GlobeSt.com that the sales price was $38.2 million.

CBRE represented the seller in the transaction. The property, a 132,064-square-foot building designed by Langdon Wilson and located on the corner of Main St. and Von Karman Ave. within the Irvine Business District submarket, was completed in 2002 and has been 100% occupied by United Healthcare Services Inc. ever since. It is currently leased on a long-term basis to the subsidiary of UnitedHealthGroup Inc.

According to Sherri Schugart, president and CEO of Hines Global REIT, “We were attracted to this property because of the high-quality tenancy, the premium location and the projected Orange County market recovery.”

Hines managing director Ray Lawler adds that the acquisition provides the REIT “with an opportunity to take advantage of one of the strongest growth markets in the US. The quality of this location and building make 2300 Main a great addition to Hines Global REIT's existing Orange County portfolio.”

The building's exterior is composed of precast concrete panels, high-performance vision/spandrel glass and a custom metal canopy over the entry. A six-story parking structure and surface stalls provide parking for 544 vehicles. Hines will manage the property on behalf of the REIT.

As GlobeSt.com also reported today, most new office listings in the Orange County market are being targeted by seasoned operators searching for value-add deals, reports Marcus & Millichap. These investors are betting on an accelerated recovery pace for the market and are hoping to offer the improved space at an advantageous rent level, Alan Pontius, SVP for M&M, tells GlobeSt.com.