Hines has announced that it has acquired Watergate Office Towers, a 1.2 million-ft², five-building suburban office complex in Emeryville, CA. The complex comprises four high-rise office buildings (Towers I, II, III and IV) and a free-standing Chevy's restaurant. The development is located on a 22.4-acre tract alongside Interstate 80 on the eastern shores of the San Francisco Bay, less than one mile from the eastern terminus of the San Francisco-Oakland Bay Bridge.
Hines acquired Towers I, II, III and the Chevy's restaurant on behalf of National Office Partners Limited Partnership (NOP), the firm's joint venture with the California Public Employees' Retirement System (CalPERS). Tower IV was acquired by a Hines affiliate, Hines Real Estate Investment Trust, Inc. (Hines REIT). Eastdil Secured represented the seller in the transaction, while Hines represented themselves and Hines REIT. The complex is over 90% leased. Hines will lease and manage the properties.
Tower I, located at 1900 Powell, contains 12 stories and 217,054 rentable ft². It was completed in 1972, and is 79% leased to tenants including LFR Levine Fricke, and Sutter Visiting Nursing Association.
Tower II, located at 2200 Powell, contains 12 stories and 229,040 rentable ft². It was completed in 1975 and is 84 percent leased to tenants including Exponential Interactive.
Tower III, located at 2000 Powell, contains 16 stories and 367,793 rentable ft². It was completed in 1985 and is 90% leased to tenants including: LECG; Bishop, Barry, Howe, Haney; Gracenote, Inc.; and Zip Realty, Inc.
Tower IV, located at 2100 Powell, contains 16 stories and 344,433 rentable ft². It was completed in 2001, and is 100% leased to Oracle Corporation, and Novartis.
Chevy's restaurant, located at 1890 Powell, contains 13,500 rentable ft² and was completed in 1973.
"The location of this asset with its proximity to both San Francisco and Oakland, and its spectacular views of the San Francisco Bay and skyline, make this a very attractive investment for National Office Partners," said Hines Vice President Gary Holtzer.
"We believe that the acquisition of Tower IV will further enhance the Hines REIT portfolio with the building's quality tenancy, architecture, and regional accessibility," said Charles Hazen, president of Hines REIT.
George Clever, a vice president in Hines' San Francisco office said, "We think that the Watergate Office Complex is the premier office business park in Emeryville. The Bay Area markets are recovering, and we expect this investment will benefit from strong rent growth and tenant demand in the future. In addition, the towers benefit from their ideal central location, access to major transportation infrastructure, and Class A office environs."