Hines & Oaktree Buy Dublin Corporate Center for $108.9MM

JLL, Dublin Corporate Center, San Francisco, Hines, Oaktree Capital Management, Dublin,
Image courtesy of Hines
JLL, Dublin Corporate Center, San Francisco, Hines, Oaktree Capital Management, Dublin,
Image courtesy of Hines

(EDITOR’S NOTE: According to sources familiar with the details of the transaction, the sale closed at $108,900,000, or roughly $247 per square foot. The listing agent on the sale was the JLL Capital Markets team in San Francisco, which included Mike Seifer, Erik Hanson and Rob Hielscher. They declined to comment on the sale of the property.)

(DUBLIN, CA) – Hines, the international real estate firm, announced today that along with a fund managed by Oaktree Capital Management, LP (“Oaktree”), it has acquired Dublin Corporate Center, a three-building, 440,266-square-foot office campus on 18 acres in Dublin, California. Financials on the deal were not disclosed.

Hines will pursue strategic capital upgrades to the Class A office campus, including exterior improvements, common area upgrades and market ready suites, in order to capture current market leasing momentum.

[contextly_sidebar id=”SdDIWp5DEycizeFOpKGStG5D309Ls2pq”]The property is located in the Tri‐Valley submarket, which possesses a combination of high‐grade office product, attractive rental rates relative to other Bay Area cities, close proximity to public transit and executive housing, access to a large and well‐educated labor force, and easy access to San Francisco and Silicon Valley economic engines.

Dublin Corporate Center was built in 2000‐2001, and is one of the top assets in the submarket. The campus is 83 percent leased to a notable tenant roster including Epicor Software, iTrade Networks and Callidus Cloud.

Hines Senior Managing Director George Clever said, “We are excited about this opportunity to partner with Oaktree on our 29th joint venture to acquire Dublin Corporate Center. This is a very high quality project that we plan to keep at the top of the market as Dublin and the Tri-Valley continue to grow. Dublin Corporate Center is an excellent addition to the Hines portfolio.”

Oaktree Managing Director Ambrose Fisher commented, “We are excited again to acquire a best-in-class asset at a substantial discount to replacement cost with our operating partner Hines who has consistently demonstrated a high level of management expertise and an ability to deliver on our business plans.”

Oaktree is a leader among global investment managers specializing in alternative investments, with $101 billion in assets under management as of December 31, 2016. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 189 cities in 20 countries. Hines has approximately $96.5 billion of assets under management, including $48.5 billion for which Hines provides fiduciary investment management services, and $48 billion for which Hines provides third-party property-level services. The firm has 114 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,205 properties, totaling over 390 million square feet. The firm’s current property and asset management portfolio includes 533 properties, representing over 213 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.

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