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 de las Pulgas in San Mateo, CA (the “West Coast Asset Sale”).
On November 18, 2016, the two-building San Mateo property, which is home to California Casualty Insurance Company, located at at 1900 and 2000 Alameda de las Pulgas closed for $84 million, or approximately $328 per square foot for the roughly 255,000 square foot property located in the Peninsula submarket. Hines had acquired the1983-built asset in June of 2005 for $58,450,000.
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.