The acquisition is the second in the Sacramento area for Hines REIT. One year ago, it paid about $67 million for 1515 S. St., a 349,000-sf office complex in Sacramento that is 100% leased to the State of California. The two five-story office buildings and an adjacent eight-story parking garage were completed in 1987 and are located several blocks from the state capitol.

Related to the Rancho Cordova acquisition, the Hines operating partnership expects to pay its advisor, Hines Advisors Limited Partnership, an affiliate of Hines, approximately $165,000 in cash acquisition fees. Hines will serve as the property manager and receive certain fees and expense reimbursements for leasing, operation and management.

The Rancho Cordova acquisition was funded using proceeds from Hines REIT's current public offering. As of November 24, Hines REIT has received gross proceeds of approximately $197.6 million from the sale of approximately 19.1 million of its common shares in its current public offering, including approximately $9.3 million relating to approximately 944,000 shares issued under its dividend reinvestment plan. Approximately $1.8 billion in shares remained available for sale pursuant to the offering, according to Hines.