By Barbra Murray, Contributing Editor
Hines recently snapped up Park Tower, a trophy office property in Sacramento. The company purchased the asset from CIM Group in a transaction valued at, according to the Sacramento Business Journal, $120.5 million.
The 25-story Park Tower, as Cameron Falconer, senior managing director with Hines, said in a prepared statement, is “a best-in-class office asset in a very desirable location.” The transaction included not just the Kaplan McLaughlin Diaz-designed downtown office building at 980 9th St., which opened in 1991, but the attached 800-space parking structure and the 350-space parking facility at 1010 8th St., as well.
Property History and Tenants
The office building and accompanying parking facilities last changed hands in 2009 when CIM purchased it from TIAA-CREF for $97 million, as noted in a property appraisal report by Integra Realty Resources. In 2005, it traded for $159 million, when TIAA-CREF acquired it from Shorenstein.
Today, Park Tower is home to the likes of the California Department of Managed Health Care, Deloitte, flexible workspace solutions provider Regus and the Sacramento County Employees’ Retirement System, and it also features Starbuck’s as a ground-level retail tenant.
Park Tower marks Hines’ second acquisition announcement this month. In a joint venture with European real estate investment platform Henderson Park, the international real estate firm made its entrée into the Greek hospitality market with the purchase of the 315-room Athens Ledra Hotel in Athens for €33 million, or approximately $36.9 million. And June isn’t over just yet.
Image courtesy of Hines