The Denver seller and Houston buyer have declined to comment on the transaction at this time, but confirmed it was in the works and the earnest money would go hard any day. Renaissance Square, situated at 2 N. Central Ave. and 40 N. Central Ave., is 95% leased, according to a Nov. 15 filing with the SEC.
Melinda Korth, executive vice president for CB Richard Ellis in Phoenix, says the class A trophy, built in the 1980s, is a perfect fit for the Hines portfolio. "Hines is actively looking for investment and development opportunities and they want to keep a certain level of standard in terms of the properties they're involved in. They like high-end, class A office properties and upscale retail mixed-use," says Korth, who isn't involved in the transaction, but is very familiar with Renaissance Square.
Korth tells GlobeSt.com that Pauls Corp. bought both buildings in separate deals in 2005 and didn't make any major renovations beyond standard tenant improvements. She says given the current shape of the buildings, Hines likely won't have too much to upgrade, either.
Along with prime buildings, Hines is getting a prime location for its money. In addition to being in a submarket boasting single-digit vacancy percentages, Renaissance Square is across the street from Patriot Square Park. The park consists of green space that is being spruced up in conjunction with redevelopment of the adjacent mixed-use, 800,000-sf City Square. Developers also are planning underground parking areas and more retail and entertainment developments in the general area. "All of this is happening across the street from Renaissance Square," Korth says. "As far as Hines' future is concerned, this is a spectacular purchase."
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