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Single-Tenant Office Building Fetches $33M

RANCHO CORDOVA, CA-Hines REIT acquires 3400 Data Drive, a three-story office building here that was completed in 1990 and is 100% leased to Catholic Healthcare West.

By Brian K. Miller | Updated on November 30, 2006

RANCHO CORDOVA, CA-Alliance Commercial Partners has sold a three-story office building here to the operating partnership of Hines REIT for $33 million plus closing costs, financing fees and reserves. The 149,703-sf building at 3400 Data Dr. is 100% leased to Catholic Healthcare West, which operates a system of 41 hospitals and medical centers in California, Arizona and Nevada. The lease runs through mid-year 2013, not including two five-year extension options.

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.

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