Hines Acquires Archstone’s Interest in CityCenterDC Project
The Washington D.C. office of Hines announced today the acquisition of the ownership interest of its partner, Archstone, in the mixed-use CityCenterDC project that is currently under construction in downtown Washington, D.C.
Washington, D.C—The Washington D.C. office of Hines, the international real estate firm, announced today the acquisition of the ownership interest of its partner, Archstone, in the mixed-use CityCenterDC project that is currently under construction in downtown Washington, D.C.
“It’s arguably the most important mixed-use development in any U.S. downtown currently underway, and the response from tenants and condo buyers has been excellent,” George C. Lancaster, senior vice president, corporate communications, Hines, tells MHN.
The acquisition of Archstone’s interest in CityCenterDC was completed in connection with the acquisition by Equity Residential and AvalonBay Communities of Archstone Enterprises LP.
The Hines | Archstone partnership was chosen by the District of Columbia in 2003 to develop the massive $700 million project on the site of the city’s old convention center. In 2011, the partnership secured equity financing from its anchor investor Qatari Diar Real Estate Investment Company, the real estate investment arm of the Qatari Investment Authority, and the financing was put in place by Barwa Bank’s investment banking subsidiary, The First Investor (TFI), which is a co-investor and manages the dedicated TFI U.S. Real Estate Fund. Construction began on Phase I of the project in March 2011.
In addition to increasing its incremental ownership in the overall mixed-use project, Hines will assume development responsibility for the two large apartment buildings comprising 458 units in the center of CityCenterDC. The firm’s rapidly expanding multifamily residential development business was established in January 2011 and it currently has approximately 5,500 units in various stages of development, representing more than $1 billion of construction in 12 U.S. cities
Construction on Phase II of CityCenterDC is expected to commence in the first half of 2014. It will consist of a 370-room luxury hotel and an additional 73,000 square feet of retail space.