San Bernardino Office Campus Acquired by Hines/Oaktree Joint Venture
- Apr 06, 2015
A San Bernardino office portfolio was recently acquired in a deal completed by international real estate firm Hines. Part of a joint venture that it created with a fund managed by Oaktree Capital Management LP, the company acquired the Inland Empire property from two investment funds managed by Rancon Real Estate. The Tri-City Corporate Center is now under the ownership of the JV, with the financial terms of the property not being disclosed. Industry analysts placed the estimated value of the deal at around $100 million. After the completion of the transaction, the property management duties at Tri-City Corporate Center will be handled by Hines.
Located across 153 acres of land in San Bernardino, in the Inland Empire submarket of California, the portfolio consists of 17 office buildings. Tri-City Corporate Center offers a total of 1,055,596 square feet of office space, with the properties being 39 percent vacant at the time of the transaction. The campus features both Class A and B level assets, leased by a tenant roster that includes names such as Air Methods Corporation, Northrop Grumman and the Art Institute of California.
The campus offers workers on-site amenities, dining and retail options, retail banking, as well as fitness facilities. Tri-City Corporate Center offers easy access to the nearby 10 and 215 Freeways, as well as a new bus stop, located in the vicinity of the property. According to Hines Senior Managing Director Doug Metzler the acquisition of the park is an important move for the company, considering Inland Empire “is projected to be the number five rent-growth market in the country.” The company’s plan is to apply a strategy of improving leasing at the asset, and taking advantage of the market’s improving fundamentals.”