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ATLANTA-Hines, a Houston-based REIT, has purchased One Atlantic Center for $305 million from New York-based Sumitomo Life Realty Inc.

In a filing with the US Security and Exchange Commission, Hines reported that an indirect subsidiary of Hines-Sumisei US Core Office Fund LP acquired the building at 1201 W. Peachtree St. The acquisition was financed with borrowings under a revolving credit facility with KeyBank National Association and a $168.5-million mortgage loan obtained from the Prudential Life Insurance Co. of America. The loan has a fixed interest rate of 6.1% and a 10-year term.

The fund was established in August 2003 by Hines Interests Limited Partnership to invest in existing office properties in the US that the company believes are desirable long-term core holdings. “The fund indirectly holds interest in a portfolio of 13 office properties. As of July 3, Hines REIT, through its operating partnership Hines REIT Properties, LP owned a 29.25% non-managing general partner interest in the core fund,” the report states.

One Atlantic Center consists of 1.1 million sf and is currently 81% leased. The building’s two largest tenants are law firms. Alston & Bird LLP leases 231,563 sf, or approximately 21% of the building’s space, under a lease that expires in October 2013. Powell Goldstein LLP currently leases 219,131 sf, or approximately 20% of the building, under a lease that expires in May 2019. Hines will serve as property manager and will provide leasing, operation and management services, according to the SEC report.

The 50-story landmark Midtown Tower is known as the IBM Tower after its original tenant. When it was built in 1987, it was the tallest building in Atlanta. It is now the third tallest in the city. The building was designed by the late New York-based architect Philip Johnson and features Spanish Pink granite, classical details and a gold-capped copper pyramidal top. Sumitomo, which purchased the building in 1989 for $300 million, put the building up for sale in February as part of the company’s ongoing efforts to restructure its portfolio away from direct investments to other types of real estate investments.

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