Hines/Oaktree Venture Acquires 4000 MacArthur

(NEWPORT BEACH, CA) – Hines, the international real estate firm, announced today that along with a subsidiary of a fund managed by Oaktree Capital Management, L.P. (“Oaktree”), it has acquired 4000 MacArthur, a Class A office project consisting of two, ten-story buildings totaling 375,000 rentable square feet in Newport Beach, California.

Financials on the deal were not disclosed.

Located within the Airport Area submarket, 4000 MacArthur has a prestigious Newport Beach address with immediate proximity to executive housing, hotels, shopping, dining and fitness clubs.

Situated within the 179-acre Koll Center Newport at the major intersection of MacArthur Boulevard and Jamboree Road, 4000 MacArthur has prominent visibility, provides convenient access to the SR-73 and I-405 Freeway, and is only one-half mile from the John Wayne Airport.

Recent building improvements include a new curtain wall façade, two fully renovated main lobbies, new restrooms, new corridors, new individual elevator lobbies, new parking and landscaping, new multiple outdoor seating areas, and a new on-site café.

Hines Managing Director Ray Lawler, who leads the firm’s Orange County development and investment office, said, “4000 MacArthur’s location, access, visibility, quality improvements, and credit tenancy make this a particularly attractive acquisition for Hines and Oaktree.

We expect the exceptional top floor vacancy, creative speculative suites, and prominent building top and monument signage will draw additional premier tenants to our project.”

Oaktree Managing Director Ambrose Fisher added, “4000 MacArthur is our eleventh project with the Hines Orange County team.

We now own 2.8 million square feet in Orange County that we have taken from 65 percent leased at acquisition to nearly 90 percent leased today.

Globally, we have purchased 21 office deals in the US and the United Kingdom with Hines, totaling 8.2 million square feet.

With the addition of 4000 MacArthur to our portfolio, we look forward to owning two of the best buildings in Orange County.”

The buildings are approximately 91 percent leased to twelve tenants, including: Hyundai Capital America, M/A-COM Technology Solutions Holdings, Lifescript, and Premium Office Centers.

Hines has assumed on-site property management responsibilities on behalf of the joint venture.

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 real estate firm involved in real estate investment, development and property management worldwide. The firm’s portfolio of projects that are completed, acquired or underway, includes 1,163 properties representing more than 389 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 402 properties totaling 170 million square feet, which includes 96.5 million square feet for third parties. With offices in 121 cities in 19 countries, and controlled assets valued at approximately $30.7 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. Visitwww.hines.com for more information.

4000 MacArthur
Caption 4000 MacArthur