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NEW YORK CITY-In a deal announced in April, Hines closed on its intent to form a strategic partnership regarding core office buildings with Sumitomo Life Realty. Three of Sumitomo’s US office building assets will serve as the foundation of the new venture. One is 499 Park Ave., at the southeast corner of Park and 59th Street. The 28-story, 297,713-sf building designed by architect I.M. Pei. The anchor tenant is Bloomberg, LP. According to records from the New York City Department of Finance, the price on the deed was listed at $147.8 million. The other Manhattan property is 425 Lexington, spanning from 43rd to 44th streets on the east side of Lexington. The 31-story, 675,612-sf building is designed by Murphy/Jahn. The building is anchored by the law firm Simpson, Thacher and Bartlett and CIBC World Markets is also a major tenant. The Washington, DC building is 1200 19th St. NW located at the intersection of 19th and M streets. The eight-story, 236,362-sf building has law firm of Piper Rudnick as its anchor tenant.

Hines chair Gerald D. Hines stated at the April announcement, “Since the mid-1990s, our firm has strategically pursued real estate asset management business. This transaction represents another major step in that direction and an important milestone for us.”

The Houston-based Hines assumed management and leasing responsibilities for these properties at the Aug. 19 closing. The parties intend to consider future joint projects involving the acquisition and ownership of office buildings in the US and Japan.

Morgan Stanley acted as the sole financial advisor to Hines on this transaction.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, as well as large, master-planned communities and land developments. Sumitomo Life Insurance Co. develops insurance and pension products for individual and corporate clientele.

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