The Value-Added fund took 1.1 million sf in 17 suburbanbuildings in nine projects located in the South Natomas, PointWest, and Campus Commons submarkets. The Core fund took 1.4 millionsf in 15 buildings in six projects in the central businessdistricts of Sacramento and Roseville. Hines Interests LP, theHouston based sponsor of both the REIT and the fund, will handlethe fee-based leasing and management assignments.

The price paid by the Value-Added fund has not been publiclyreleased. However, multiple sources have put the overall cost ofthe transaction at $750 million, and the Core fund's piece wasacquired for $490.2 million (exclusive of transaction costs,financing fees and working capital reserves) in cash and debt,according to SEC filings by Hines REIT, a subsidiary of which ownsa stake in the Core fund.

Jason Goff and Drew Petersen with Jones Lang LaSalle inSacramento assisted Eastdil Secured in marketing the portfolio onbehalf of Blackstone. Goff told Globest.com in Aprilthat the EOPportfolio is an exception to the high overall vacancy rates in theSacramento area.