James A. Hime, Hines senior vice president, tells GlobeSt.com that this acquisition was staged to accommodate certain business objectives of Sumitomo. This will not end the fund's shopping spree as Hime says he anticipates that $350 million will be spent by the end of the next quarter on acquisitions in the top 20 markets, except New York, for now.
"We need to get a geographic balance," Hime says, describing the market today as "frothy." He expects the fund to be looking at Manhattan properties once that balance is achieved.
The partnership between Hines and Sumitomo was announced last April and in August it acquired the three-property portfolio of 499 Park Ave., 425 Lexington and 1200 19th St. NW in Washington, DC. Hines will assume management and leasing for the 36-story, 278,586-sf 600 Lexington.
"We think this is a favorable time in the market cycle to buy a core asset in a core location that will endure across changing market conditions," notes Tommy Craig, Hines' senior vice president and partner in charge of the New York Metro Area.
Hines, with institutional partners, now controls a portfolio of five buildings in Midtown with nearly three million sf of space.
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