LOS ANGELES-Hines REIT Properties, a subsidiary of Hines REIT, has entered into a purchase agreement with Blackstone Group LP to buy the Howard Hughes Center for an estimated $506 million. Both parties expect to close the acquisition by January 15, 2014. Hines REIT has given an “earnest money deposit” of $30 million for the purchase.
According to the SEC filing, completion of the purchase agreement is contingent on “receipt of tenant estoppels related to at least 75% of the net rentable area” of the center, as well as other closing conditions.
The Howard Hughes Center has five, class-A office buildings and an athletic club, totaling 1.32 million square feet. With 93 tenants, it is 88% leased. Earlier this year the Promenade at Howard Hughes Center announced plans to reposition into an entertainment destination to target the growing resident pool in Silicon Beach.
Hines REIT could not be reached for comment.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Kelsi Maree Borland
