commercial loan news

April 6, 2007

Hines Bullish on Sacramento Office Markets

More Blackstone Property Flipped in Record-Shattering $750M Office Transaction

Not to be left out of the ongoing redistribution of Equity Office Properties massive office portfolio, an affiliate of Houston-based Hines Interests LP has locked up the former EOP's 2.4 million-square-foot Sacramento office portfolio, including the 502,365-square-foot Wells Fargo Center at 400 Capital Mall, CoStar News has learned.

The transaction, valued by sources close to the deal at more than $750 million, or $312.50 a square foot, is the largest transaction in the history of the Sacramento market by a wide margin. The acquisition, for which Hines outbid San Francisco-based Shorenstein Properties, is expected to close May 1.

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Commentary

Looks like Blackstone/EOP's transactions will have a positive spillover effect for the Sacramento office market. We can see institutional investors developing a bigger appetite for office property investments in this region.

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