Rancho Cordova is a suburb of Sacramento. Capital Center islocated on White Rock Road near Highway 50. The portfolio, known asCapital Center II and III, is currently 87% leased to tenantsincluding Bank of America, St. Paul Travelers, Delta Dental and theState of California.

A source at Hines confirmed the transaction for GlobeSt.com butdeclined to confirm the sale price or reveal the IRR for itsinvestors. Hines SVP and fund manager David Congdon says thatduring its ownership of the property, occupancy improved by 20% andoperations also improved. "We added significant value and realizedexceptional investment performance," he says.

Last month, Hines acquired a pair of 45,000-sf office buildingsin the Prospect Park area of Rancho Cordova from TA AssociatesRealty of Boston for about $10 million. The company plans torenovate and release the buildings, which were occupied by theFranchise Tax Board and are now vacant.