Hines Global REIT II, a non-traded REIT sponsored by Hines, recently acquired a Class A industrial building in Carlsbad, California. The contract purchase price for the property was approximately $25.4 million, which the REIT funded with proceeds from its current public offering and a loan provided by Hines Interests Limited Partnership.
Located at 2819 Loker Avenue East, the bulding totals 161,310 square feet and is the first asset acquired by the non-traded REIT. Built in 1998 and renovated in 2009, the one-story building is 100% leased to Acushnet Company on a long-term basis. Acushnet is the parent company for golf industry brands, including Titleist, Pinnacle, and Footjoy.
“We were attracted to this property because of the high-quality tenancy, the desirable location, and the strength of the golf industry in the submarket,” commented Sherri Schugart, president and CEO of Hines Global REIT II.
Hines Senior Managing Director Paul Twardowski added, “This acquisition provides Hines Global REIT II with an opportunity to take advantage of one of the strongest growth markets in the U.S. The quality of this location and building make 2819 Loker Avenue East a great initial investment for Hines Global REIT II.”
Hines Global REIT II invests in commercial real estate located both within the United States and internationally. Its sponsor has offices in 78 cities across the U.S. and 18 other countries, and as of June 30, 2014 controlled assets valued at approximately $30.7 billion.