Hines Real Estate Investment Trust, Inc. (“Hines REIT”), one of three public non-listed REITs sponsored by Hines, announced in July of 2016 that its board of directors unanimously voted to approve a plan for liquidation and dissolution of the Company. The sale took advantage of the strong demand for high-quality assets by institutional buyers, and included seven West Coast office assets in a cash transaction for $1.162 billion. The buyer was an affiliate of Blackstone Real Estate Partners VIII.
The transaction with Blackstone is structured as an asset purchase of approximately 3 million square feet of office properties and includes Howard Hughes Center in Los Angeles, CA; Daytona Buildings in Redmond, WA; Laguna Buildings in Redmond, WA; 5th and Bell in Seattle, WA; 2100 Powell in Emeryville, CA; 2851 Junction Avenue in San Jose, CA; and 1900 and 2000 Alameda in San Mateo, CA (the “West Coast Asset Sale”). On November 16, 2016, the Emeryville location at 2100 Powell closed for $122 million, or just over $353 per square foot for the roughly 345,000 square foot East Bay property.
The Eastdil Secured group of Wells Fargo Securities, LLC acted as financial advisor to Hines REIT on this transaction and Robert A. Stanger & Co., Inc. provided certain financial advisory services to the board of directors in connection with the transaction.