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Hines Locks Up Most of EOP's Sacramento Assets

SACRAMENTO, CA-The Houston-based company will pay upward of $750 million for 32 properties totaling 2.4 million sf, thereby becoming the capital city's largest landlord save for the state.

By Brian K. Miller | Updated on April 04, 2007

SACRAMENTO, CA-Affiliates of Hines Interests LP will acquire most of EOP’s assets here from Blackstone Group for a price in the vicinity of $750 million or $312.50 per sf, multiple industry sources tell GlobeSt.com. The deal includes 32 buildings totaling 2.4 million sf. Hines and Blackstone have declined comment on the pending transaction, which is scheduled to close on or about May 1.

The package includes the Wells Fargo Center at 400 Capitol Mall in Downtown, suburban office buildings in the area’s Campus Commons, Point West, South Natomas and Watt submarkets, and nine buildings in the Roseville/Rocklin area, according to the sources. The deal does not include a few EOP properties in the Folsom area that were sold to a joint venture of McCarthy, Cook & Co. and J.P. Morgan, they say.

Jason Goff and Drew Petersen with Jones Lang LaSalle in Sacramento assisted Eastdil Secured, the firm Blackstone Group retained to market the portfolio. John Frisch, head of the Sacramento office of Cornish & Carey, also assisted in the transaction. Goff tells GlobeSt.com that “every one of buildings is the best real estate in historically the best markets in Sacramento.” Frisch tells GlobeSt.com the properties are “garnering higher rents and higher occupancy levels” than the market average.

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