(SAN BERNARDINO, CA) – Hines, the international real estate firm, announced today that along with a fund managed by Oaktree Capital Management, L.P. (“Oaktree”), it has acquired Tri-City Corporate Centre, a portfolio of office buildings in San Bernardino, CA. Financials on the deal were not disclosed.
The portfolio is comprised of 17 Class A and B office buildings totaling 1,055,596 square feet across the 153-acre campus. The portfolio is currently 61 percent leased to a number of well-known tenants including: Air Methods Corporation; Northrop Grumman; and The Art Institute of California. Hines has assumed property management responsibilities on behalf of the joint venture.
Located within the Inland Empire, Tri-City Corporate Centre provides superior on-site retail amenities including numerous restaurants, retailers, full-service retail banking and a health club. Tenants of Tri-City Corporate Centre enjoy its visibility, accessibility and transit-oriented location. The self-contained corporate office park provides direct access and visibility from the 10 and 215 Freeways and a new rapid transit bus stop has been installed within walking distance.
“We are excited about this unique opportunity to acquire such a sizable, well-located office portfolio in San Bernardino,” said Mark Jacobs, managing director in Oaktree’s Real Estate Group. “The Oaktree/Hines partnership is well capitalized, and given the quality of these properties, we believe we can compete successfully in the market.”
Hines Senior Managing Director Doug Metzler added, “We are thrilled for the opportunity to acquire the largest and highest quality business park in the Inland Empire, which is projected to be the number five rent-growth market in the country. This acquisition provides us the opportunity to add significant value through leasing and the continuing improvement of Inland Empire office market fundamentals.”
Oaktree is a leader among global investment managers specializing in alternative investments, with $90.8 billion in assets under management as of December 31, 2014. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 17 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com.
Hines is a privately owned global real estate investment firm founded in 1957 with locations in 185 cities in 19 countries. Hines has $84.9 billion of assets under management, including $42.7 billion for which Hines provides fiduciary investment management services, and $42.2 billion for which Hines provides third-party property-level services. In 2014, Hines completed over $8 billion in transactions on behalf of its investment management clients. The firm has 104 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired more than 1,000 properties, totaling over 339 million square feet. The firm’s current property and asset management portfolio includes 511 properties, representing over 176 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.