The Hines U.S. Office Value Added Fund announced the sale of Capital Center, a suburban office campus comprised of 10 buildings in Rancho Cordova, Calif.
The value of the transaction was not disclosed.
DRA Advisors LLC purchased the 531,410-square-foot property, located in the Highway 50 submarket of Sacramento. The project was acquired by Hines’ U.S. Office Value Added Fund in 2004, and is the fund’s first asset to be sold.
Capital Center, originally known as Capital Center II and Capital Center III, was built in 1984-1985. It was 87 percent leased at closing to tenants including Bank of America, St Paul Travelers, Delta Dental and the State of California.
“Capital Center has the distinction of being both the first asset acquired by the U.S. Office Value Added Fund as well as the first property sold,” said David Congdon, Hines senior vice president and fund manager. “By increasing occupancy over 20 percent in less than 18 months and improving the campus’ operations, we added significant value and realized exceptional investment performance.”
The Hines U.S. Office Value Added Fund was formed in December 2003 to acquire office properties in central business districts and suburban markets where value can be created through leasing, redevelopment and operating strategies. After the sale of Capital Center, the fund now owns more than $580 million in value-added office assets encompassing 3 million-plus square feet of space in seven properties.