Hines/Oaktree Venture Acquires Two Lenexa Real Estate Developments

Southlake and Lenexa Industrial Parks Positioned for Growth

(LENEXA, Kan.) Hines, the international real estate firm, announced today that along with a subsidiary of a real estate fund managed by Oaktree Capital Management, L.P. (Oaktree), it has acquired the Southlake Technology Park and Lenexa Industrial Park. Financials on the deal were not disclosed.

The two commercial real estate parks comprise 1.67 million square feet of leasable space in 40 buildings that are strategically located near the intersection of Interstate 35, Interstate 435 and Kansas 10, the transportation and economic nexus in Kansas.

“These properties represent the largest blocks of vacancy in office product in southern Johnson County,” said Tom Danilek, Hines senior managing director. “Hines and Oaktree were attracted to the industrial buildings due to the parks’ superior location at the epicenter of the flex industrial market, as well as the more than 69 acres of fully entitled land for future office and industrial development.”

Phil Hofmann, managing director of Oaktree, said, “The Lenexa joint venture represents a terrific investment opportunity. We are committed and focused on working with Hines to maximize the value of these key Johnson County business locations.”

Blake Schreck, president of the Lenexa Chamber of Commerce, said, “We are extremely pleased that Hines has purchased two of our signature properties. It is exciting to have a partner with that kind of energy and vision in our community.”

Southlake Technology Park comprises 15 office buildings totaling 933,000 square feet of space. There are 10 sites of vacant land totaling 53 acres available for future development along College Boulevard from Lackman Road to Renner Boulevard. The development began construction in 1987 and was completed in 2002.

Lenexa Industrial Park comprises 25 industrial and flex buildings totaling 736,000 square feet of space. There are four sites totaling 16 acres available for future development near 99th Street and Pflumm Road. The development began construction in the 1970s and was completed in 1999.

The portfolio is currently 67 percent occupied. Ned O’Connor of Waterford Property Company is responsible for leasing Southlake Technology Park, the office portion of the portfolio, while Mark Feitz of LaSala-Sonnenberg Commercial Realty is the broker for Lenexa Industrial Park, the industrial component. Hines will be the property manager on both.

Hines has been active in nearby Kansas City, Mo.’s, real estate market since 1971, with its most prominent commercial real estate projects being completed in the past decade. These include the Science City at Union Station and H&R Block World Headquarters developments, as well as two major Crown Center office building acquisitions – 2345 Grand and 2555 Grand.

Oaktree is a leader among global investment managers specializing in alternative investments, with $79.8 billion in assets under management as of Sept. 30, 2013. 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 more than 750 employees and offices in 15 cities worldwide.

Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes 1,283 properties representing more than 516 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments. Currently, Hines manages 378 properties totaling 151.9 million square feet, which includes 84.3 million square feet for third parties. With offices in 111 cities in 18 countries, and controlled assets valued at approximately $25.2 billion, Hines is one of the largest real estate organizations in the world. Hines is also a world leader in sustainable real estate strategies, with extensive experience in LEED®, ENERGY STAR®, BREEAM, Haute Qualité Environnementale and DGNB green building rating systems.