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WOODLAND HILLS, CA-Houston-based Hines has acquired the 808,000-sf office campus LNR Warner Center from Rreef North America via a subsidiary of Hines-Sumisei US Core Office Fund. The parties did not announce terms of the deal, but the price was $311 million, according to documents that Hines filed with the SEC.

LNR Warner Center is composed of four five-story buildings and one three-story building that were developed by LNR. Built in stages between 2001 and 2005, the office campus at the time of the sale was 98% leased.

Colin Shepherd, an SVP at Hines, says the company has had its eyes on the Woodland Hills office market and Warner Center for years. He calls LNR Warner Center “the highest-quality asset in that submarket.”

The Woodland Hills office market consists of 45 buildings totaling about 6.3 million sf with a vacancy rate of approximately 9.6%, according to the most recent report by CB Richard Ellis. The report pegged average asking rates in the submarket at $2.33 per sf per month.

The LNR Warner Center tenant roster includes Health Net of California, NetZero, ATK Missile Systems and Univision Music. Health Net is the largest tenant with 333,954 sf, or approximately 41% of the property’s rentable area, under a lease that expires in December 2011.

The acquisition was funded by borrowings under a revolving credit facility with KeyBank National Association held by an indirect subsidiary of the Core Fund, along with capital from institutional co-investors and a $174-million mortgage loan from Bank of America.

Hines and Sumitomo Life Realty of New York organized the Core Fund in August 2003 to invest in existing office properties in the US that Hines believes are desirable long-term “core” holdings. Hines, which represented Core Fund in the acquisition, will serve as the property manager. Rreef North America was represented by Eastdil Secured.

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