(SUNNYVALE, CA) – Hines, the international real estate firm, today announced that, along with a real estate fund managed by Oaktree Capital Management, L.P. (Oaktree), it has acquired 825 Stewart Drive, a 75,350-square-foot office asset in Sunnyvale, CA, from Pacific Landmark, LLC.
Financials on the deal were not disclosed.
As originally constructed in 1968, the property consisted of a 45,768-square-foot, single-story building.
In 2002, the property underwent a renovation which included a 29,582-square-foot, two-story addition.
The property is located on more than four acres in the heart of Silicon Valley and has excellent access to Highway 101, Lawrence Expressway, Central Expressway, and Caltrain in downtown Sunnyvale.
Currently vacant, 825 Stewart will undergo a complete redevelopment under its new ownership.
After the approximately nine-month process, the asset will be a substantially modernized office building that will appeal to both creative and more traditional technology industry tenants.
Improvements to the property will include a seismic upgrade, complete replacement of building systems, new glazing and exterior painting, new landscaping, an all-new lobby, and a market-ready tenant build out.
Hines Senior Managing Director George Clever, said, “We are excited to add 825 Stewart to our portfolio and to redevelop the asset into a modern office project that meets the needs of today’s tenants.
With our upgrade plans for the property and the area’s overall improving market fundamentals, we expect 825 Stewart to be a desirable place for business.”
"The Oaktree/Hines partnership is well capitalized and, given the quality of this location, we believe we can effectively return this attractive asset to the market,” said Ambrose Fisher, managing director for Oaktree.
Oaktree is a leader among global investment managers specializing in alternative investments, with $86.2 billion in assets under management as of March 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 800 employees and offices in 16 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 historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes 1,317 properties representing more than 541 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 391 properties totaling 161 million square feet, which includes 89.1 million square feet for third parties. With offices in 115 cities in 18 countries, and controlled assets valued at approximately $28.2 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. Visit www.hines.com for more information.
Image courtesy of Studio G Architects, Inc., Campbell, CA