Hines has announced the acquisition of Two MacArthur Ridge, a six-story, 247,000-ft² office building located on a 7.5-acre site in the Las Colinas submarket of Dallas. Two MacArthur Ridge was acquired from CalSTRS, which was advised by ING Clarion Partners LLC. The seller was represented by Ken Page and Brad Thornburg of Cushman & Wakefield. Hines will manage the property.
Two MacArthur Ridge was designed by Opus/Boka Powell and was completed in 1999. The project is currently 95% leased to tenants including EMC Corporation, La Quinta Inns and Usability Sciences Corp. In February 2007, occupancy is expected to decrease to 33% with the anticipated relocation of EMC Corporation.
According to Hines Senior Vice President Clayton Elliott, "Two MacArthur Ridge represents a significant investment for Hines in Las Colinas, in addition to our current land holdings. This acquisition solidifies our belief in the resurgence of Las Colinas as a corporate destination. We see Two MacArthur Ridge as an excellent candidate for relocation or expansion for Class A tenants. With exceptional views, access and an above-standard parking ratio, we believe this building will return to historical occupancy levels in the very near term."
Hines acquired the property through its U.S. Office Value Added Fund. Hines Senior Vice President and fund manager Dave Congdon said, "We are enthusiastic about the acquisition of Two MacArthur Ridge. This high quality asset is well positioned to capitalize on the continued expansion of the Dallas area economy and corporate tenants' desire for Class A office space in Las Colinas."
Project Manager Andrew Montgomery added, "Hines is constantly seeking opportunistic investments in growth markets such as Las Colinas. This investment is another example of Hines' Southwest Region pinpointing real demand drivers in a particular submarket and betting on those real estate fundamentals to outperform."