The package totals 251,000 sf and is 100% leased. The major tenant is Microsoft Corp., which leases 84% (211,731 sf) of the building on a lease that expires in 2012 and provides options to renew for two additional five-year terms. The balance of the buildings' rentable area is leased to 16 office tenants and one retail tenant.
Located at 148th Avenue and NE 31st Way, the buildings are near Microsoft's world headquarters. Microsoft held a right of first refusal to acquire the property instead of Hines but let the option expire, according to the SEC filing.
Early next year, Hines REIT will add six more Hart-owned buildings on NE 31st Way to its portfolio. In late November, Hines agreed to pay $118 million for the 465,000-sf portfolio, which is known as the Laguna Buildings. The transaction is expected to close on or about Jan. 3.
Honeywell International Inc., an industrial products company, leases 388,798 sf, or approximately 84% of the buildings' rentable area under leases expiring in various years through 2013. One of the leases, for 104,443 sf, expires in July 2009 and provides the option to renew for two additional five-year terms. Microsoft leases the remainder of the building under a lease that expires in 2011.
Hines REIT has not yet filed any data with the SEC on the financial performance of the buildings in either acquisition.
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