Hines has made its first investment on behalf of its Hines US Office Value Added Venture (VAV) III with the acquisition of an under-occupied Phoenix office property.
The Houston-based real estate investment firm has acquired 24th at Camelback I from GLL Real Estate Partners, a Munich-based institutional real estate advisor. Although terms of the transaction were not disclosed, data provider Real Capital Analytics lists the purchase price as $81 million.
Hines’ senior managing director and fund manager Dave Congdon said in a statement: “This asset is well positioned to capitalize on the continued recovery in the greater Phoenix market.”
Hines developed the eight-story, 302,209-square-foot office tower in 2000 and has managed the property since inception. GLL Real Estate Partners bought the Class A property, which is located at 24th Street and Camelback Road in Phoenix’s Camelback Corridor submarket, from Hines in 2006 for $114 million.
24th at Camelback I, which includes 27,210 square feet of ground floor retail/restaurant space, currently is 87 percent occupied. Tenants include Old Republic Title Agency and Hub International.
This is the first investment made via Hines’ VAV III fund, which closed in August 2012 with $210 million in equity commitments. The vehicle targets value-added investments in the US office sector and, with leverage, has more than $600 million of buying power.