(ROCKVILLE, MD) – Hines, the international real estate firm, announced today that it has acquired North Bethesda Place I and II, a portfolio totaling 345,567 rentable square feet, from JBG. Financials on the transaction were not disclosed.
The office complex consists of two adjacent office buildings and is located along the major north/south transportation artery of Rockville Pike in North Bethesda, Maryland. The eight-story North Bethesda Place I consists of 160,846 square feet. The 11-story North Bethesda Place II consists of 184,721 square feet. While both buildings were renovated in 2015, Hines has planned an extensive capital improvement program and will add a fitness center and conference center to the on-site amenities, as well as complete the upgrades already underway by the seller to the restrooms and lobbies.
The complex is strategically located in the heart of the White Flint Sector, a flourishing neighborhood that is served by the White Flint Metro station. North Bethesda Place I and II have a combined occupancy of 49 percent. Tenants include JBS International, the National Cancer Institute and Whole Foods Market Group Inc.’s regional headquarters.
“We are enthusiastic about this investment because today’s office users strongly prefer transit and amenity-oriented locations, and our research indicates a high likelihood of growth in metro Washington office markets,” commented Dave Congdon, portfolio manager of the Hines U.S. Value Fund.
“We are in the process of developing architectural plans for the comprehensive repositioning of the campus and taking it to a new standard of excellence,” commented Hines Managing Director Scott Martinson. “We were attracted to the asset’s great potential and close proximity to the White Flint Metro station. With new tenants already showing interest, we look forward to adding value by returning the buildings to stabilization.”
Eric Berkman, executive managing director at Cushman & Wakefield, added, “The tremendous amount of interest we received from investors for these assets was a vote of confidence in the revitalization of the Pike District.”
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 199 cities in 19 countries. Hines has $87 billion of assets under management, including $43 billion for which Hines provides fiduciary investment management services, and $44 billion for which Hines provides third-party property-level services. The firm has 104 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,100 properties, totaling over 346 million square feet. The firm’s current property and asset management portfolio includes 531 properties, representing over 186 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.
