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Hines’ US office fund sells Denver complex

The Houston-based real estate firm, on behalf of its Hines US Office Value Added Fund, has sold the Mountain View Corporate Center in the Denver area to the Westfield Company.

Hines has sold the Mountain View Corporate Center, a 461,438-square-foot Class A office campus in Broomfield, Colorado, to the Westfield Company, a Denver-based real estate investment management and development firm. Terms of the transaction were not disclosed, but data provider Real Capital Analytics said the property traded for approximately $92 million, or $199 per square foot.

Hines acquired the complex –encompassing three three-story buildings and one four-story building – in 2006 from a joint venture between Legacy Partners and Goldman Sachs’ Whitehall Street Real Estate Funds for $71.5 million, or $155 per square foot. The property, which was built in 1999, was the eighth of nine assets that were acquired on behalf of Hines US Office Value Added Fund, which launched in December 2003 and raised $276 million in equity.

The vehicle invested in existing US office properties with value-added potential through leasing or redevelopment activities. All but three of the fund's investments now have been sold.

“By increasing occupancy and improving the campus’ operations, we added significant value and realized positive investment performance through the market cycle” said Dave Congdon, senior managing director and fund manager for Hines US Office Value Added Fund, in a statement.

Mountain View Corporate Center, which spans 27 acres, was about 72 percent occupied when Hines acquired the property six years ago. It currently is 92 percent leased to tenants that include Time Warner Cable, TransFirst and White Wave Foods.