International real estate firm, Hines, recently announced that together with a real estate fund managed by Oaktree Capital Management LP, it has acquired a Class A office building in Santa Ana, California. Financial details have not been released.
The property, located at 1750 East Fourth Street, is situated on 2.8 acres and contains 229,989 square feet. The eight-story building was completed in 1994 and is located within the Orange County submarket. Its location provides immediate access to the 5 and 55 Freeways, providing convenient routes to Los Angeles, Orange County, and the Inland Empire.
Managing Director at Hines, Ray Lawler, who leads the firm’s Orange County development and investment office, commented, “Orange County is projected to be among the highest rent-growth markets in the U.S. over the next five years. This property provides us the opportunity to add significant value through leasing and the continuing improvement of Orange County’s market fundamentals.”
Approximately 50% of the square footage will be leased back to State Compensation Insurance Fund in a long term lease. The remaining 50% is available to lease immediately.
Oaktree Managing Director, Ambrose Fisher, added, “We are happy to begin a long-term relationship with State Compensation Insurance Fund, and we look forward to adding 1750 East Fourth Street to our Orange County real estate holdings. This is our 10th project with Hines in Orange County and our 18th with Hines globally.”
On behalf of the joint venture, Hines has assumed on-site property management.
Hines is a privately owned real estate investment firm involved in real estate investment, development, and property management and has controlled assets valued at approximately $28.2 billion. Oaktree is a global investment manager that specializes in alternative investments and as of March 31, 2014 had $86.2 billion in assets under management.