Hines, along with a subsidiary of a real estate fund managed by Oaktree Capital Management, has acquired Brea Place, a 557,589-square-foot office campus on 30 acres in Brea, California.
The campus comprises six buildings that range from one to six stories on both the east and west sides of S. State College Boulevard, immediately adjacent to the Brea Mall.
Financials on the deal have not been disclosed.
Located within the North Orange County submarket, Brea Place has access to major freeways servicing the vast Los Angeles, Inland Empire and greater Orange County employment hubs. In addition, the project's location provides access to retail, dining and hospitality amenities, including the adjacent 1.3 million-square-foot Brea Mall.
Hines managing director Ray Lawler, who leads the firm's Orange County development and investment office, says: "North Orange County is a highly attractive submarket where Hines and Oaktree expect to grow our portfolio. The accessibility to the Orange County, Inland Empire and Los Angeles labour pools, coupled with strong demographics, make Brea a great opportunity for investment. Brea Place is a premier office campus in this submarket and the surrounding area's business environment is strong."
Oaktree managing director Ambrose Fisher says: "We are excited to partner with Hines on another significant office opportunity in Orange County. This is our ninth deal together, which brings our Orange County portfolio to more than 2.2 million square feet. Our strategic capital upgrades, including new lobbies, upgraded landscaping, and enhanced and additional on-site signage, will greatly improve the campus. These upgrades, along with improving market fundamentals, will help drive leasing momentum and increase tenant satisfaction."
The campus is currently 75 per cent leased to 24 tenants, including Chevron Corporation, Merrill Lynch, MetLife, Wells Fargo, Sully-Miller Contracting Co, and Union Bank. Hines has assumed on-site property management responsibilities on behalf of the joint venture.