Hines has announced that its U.S. Office Value Added Fund has completed its third and fourth acquisitions: One Ravinia Drive in suburban Atlanta, and Union Bank Plaza in downtown Los Angeles.
One Ravinia Drive was acquired from Deutsche Immobilien Fonds AG (DIFA). DIFA was represented by Eastdil Realty. Originally developed by Hines in 1985 and designed by Kevin Roche, John Dinkeloo & Associates, One Ravinia Drive is a 17-story, 383,606-square-foot, Class A office building. As part of the prestigious, three-building Ravinia development, with access to the Crowne Plaza Hotel, the Ravinia Club and the nearby Perimeter Mall, the building offers diverse amenities to a tenant roster anchored by Mariner Health Care; Dow, Lohnes & Albertson PLLC; and Watson Wyatt & Co. Now 95% leased, departing tenants will increase vacancy to 35% in November of this year, creating a value-add opportunity for the fund. Hines has managed and leased this property since it was developed and will continue in this capacity.
âCentral Perimeter is Atlantaâs dominant suburban submarket, and in 2004 it experienced over a million square feet of positive absorption. At 65% of replacement cost, One Ravinia Drive was an excellent acquisition with significant upside potential,â said Hines Vice President Kurt Hartman.
Union Bank Plaza was acquired from a fund sponsored by Walton Street Capital. The seller was represented by Zietsman Realty Partners. Designed by Albert C. Martin & Associates, the 40-story, 625,838-square-foot, Class A office property was completed in 1967 as the west coast headquarters for Connecticut General Life Insurance Company. Now 95% leased, the tower serves as the regional headquarters for Union Bank of California, an original tenant which currently occupies more than half of the building.
âHines is a strong believer in the future of downtown Los Angeles. We expect strong rental rate growth in the near future due to the marketâs geographic, transportation and density advantages,â said Hines Senior Vice President Colin Shepherd. âUnion Bank Plaza is a well located, high quality office building with unique opportunities for physical and financial value-enhancement.â
Hines Senior Vice President and Value Added Fund Manager Dave Congdon added, âWe are very pleased to acquire these high quality buildings in two of our target markets. Each property presents opportunities to add value through leasing, operations, and capital investmentâ"all key elements of the Value Added Fundâs strategy. Hines will continue to aggressively look for other such attractive opportunities in our target markets.â