Hines has announced that in partnership with RREEF's Real Estate Opportunity Fund (REOF), it has acquired Hawthorne Plaza in San Francisco's South Financial District. The two-building office complex, located at 75 Hawthorne Street and 95 Hawthorne Street, was purchased from TMG Partners and Farallon Capitol Management. The San Francisco office of Eastdil Secured represented TMG and Farallon Capitol in the sale. Hines will assume property management and leasing responsibilities.
Hawthorne Plaza is comprised of a 20-story Class A office building and a five-story office building containing a total of 441,428 ft². TMG Partners recently completed several million dollars of capital improvements including a seismic retrofit and exterior skin enovation on these circa 1987 properties. The complex is 82% leased with 73% of the space occupied by the Federal Government, including the EPA's Southwest Regional headquarters which leases approximately 260,000 ft².
"We consider this a quality, well-located asset where Hines can add value through leasing," said RREEF's Director of Acquisitions Jon-Paul Momsen. Hines Vice President Cameron Falconer added, "We are confident that we will be able to capitalize on strong underlying market fundamentals as we implement our leasing effort."