Hines and a real estate fund managed by Oaktree Capital Management have acquired 1750 East Fourth Street, a 229,989-square-foot, Class A office building on 2.8 acres in Santa Ana, California.
Financials on the sale and lease back with State Compensation Insurance Fund have not been disclosed.
Completed in 1994 with immediate access to the 5 and 55 Freeways, the eight-story building is located within the Orange County submarket and has convenient access to the major the Los Angeles, Orange County and Inland Empire employment hubs.
Vendor State Compensation Insurance Fund will lease back approximately 50 per cent of the square footage via a long term lease. The remaining 50 per cent of the square footage is available to lease immediately.
Hines managing director Ray Lawler, who leads the firm's Orange County development and investment office, says: "Orange County is projected to be among the highest rent-growth markets in the US 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."
Oaktree managing director Ambrose Fisher says: "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."