Hines and a fund managed by Oaktree Capital Management acquired Pacific Center, a four-building, mixed-use campus totaling 143,000 square feet across 15.5 acres in Anaheim, California. Financials on the deal were not disclosed.
Pacific Center, completed between 1985 and 1991, consists of Class A office, flex-industrial, retail and land for future development. The campus is currently 93 percent leased to a notable tenant roster, including employment development offices of the State of California and multiple software companies.
The project’s vacancy lies within the retail component of the campus, which is poised for a complete transformation through a capital improvement program to include new site work and landscaping, premier signage, and exterior building facades.
These upgrades will capitalize on Pacific Center’s location at the intersection of North Tustin Avenue and East La Palma Avenue, which is among the top busiest intersections in Anaheim. The improvements are certain to attract attention from these two major thoroughfares, where nearly 100,000 cars travel daily. Construction at the campus will commence spring of this year.
“The on-site Metrolink station provides an opportunity for walkable, transit-oriented, mixed-use development in the Orange County area,” says Hines Managing Director Ray Lawler, who leads the firm’s Orange County development and investment office. “We see the transit-centered nature of the site as one of the most compelling features of the project and are eager to improve the campus through our strategic capital plan.”
Oaktree Managing Director Ambrose Fisher added, “The Hines and Oaktree partnership is excited by the opportunity to diversify our Orange County portfolio with Pacific Center. This marks our first retail pursuit in the area and we are enthusiastic about its potential to increase options for the community at-large.”
Oaktree specializes in alternative investments, with $101 billion in assets under management as of December 31, 2016. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide.
Hines is a privately owned global real estate investment firm founded in 1957 with locations in 192 cities in 20 countries. Hines has $93.2 billion of assets under management, including $47.9 billion for which Hines provides fiduciary investment management services, and $45.3 billion for which Hines provides third-party property-level services. Hines has 105 developments currently underway around the world, and historically, has developed, redeveloped or acquired 1,180 properties, totaling over 379 million square feet. The firm’s current property and asset management portfolio includes 483 properties, representing over 199 million square feet.