(SALT LAKE CITY) – 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), has acquired four office buildings totaling 440,708 square feet at The Gateway in Salt Lake City from The Boyer Company.
Financials on the deal were not disclosed.
One Gateway, located at 90 South 400 West, contains seven stories,
161,704 square feet and was completed in 2002.
Three Gateway, located at 440 West 200 South, contains six stories, 114,197 square feet and was completed in 2001.
Five Gateway, located at 178 S. Rio Grande, contains four stories, 64,279 square feet and was completed in 2007.
Six Gateway, located at 460 West 50 North, contains five stories, 100,528 square feet and was completed in 2012.
Two Gateway and Four Gateway were not part of the transaction.
The portfolio is currently 91 percent leased to a number of well-known tenants including: Barrick Gold; Bureau of Land Management Utah; Energy Solutions; Kearns Tribune, LLC – Salt Lake Tribune; Sungard Financial; and Ernst & Young.
Hines has assumed on-site property management responsibilities on behalf of the joint venture.
The buildings are located in the Salt Lake City downtown periphery submarket and have visibility from the I-15 freeway, immediate proximity to the Intermodal Transportation Hub, and are adjacent to many dining and entertainment venues.
This is the second asset purchased by Hines/Oaktree in Utah.
In 2012, the venture purchased South Towne Corporate Center, a two-building, 248,352-square-foot Class A office complex located in Sandy.
Hines Managing Director Dusty Harris, who heads Hines’ Salt Lake City development and investment office, said, “Hines entered Salt Lake City in 1988, and we remain focused on growing our portfolio.
With the recently improved transportation infrastructure, and the nearby unmatched restaurant and entertainment amenities, we are optimistic about the long-term success of The Gateway.”
"The Oaktree/Hines partnership is well capitalized, and given the quality of this location and these buildings, we believe we can compete very favorably in the market.
We look forward to working with Hines on The Gateway buildings, which are among the highest-quality assets in the submarket," said Mark Jacobs, managing director for Oaktree.
Oaktree is a leading global investment management firm focused on alternative markets, with $78.8 billion in assets under management as of March 31, 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 over 700 employees and offices in 13 cities worldwide.
For additional information, please visit Oaktree’s Web site 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 1,273 properties representing more than 514 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 406 properties totaling 148.5 million square feet, which includes 78.3 million square feet for third parties.
With offices in 113 cities in 18 countries, and controlled assets valued at approximately $24.3 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.