Affiliates of Houston-based REIT Hines have agreed to sell the One Wilshire building at 624 S. Grand Avenue in Los Angeles, and 2200, 2222 and 2230 East Imperial Highway in El Segundo, CA, known as the Raytheon and DIRECTV buildings, to GI TC ONE WILSHIRE, LLC, for $550 million.
The purchase price for the properties are allocated as $112.5 million for the El Segundo property and $437.5 million to the One Wilshire property.
The sellers have agreed to pay to Eastdil Secured and CBRE a real estate commission at closing, which is scheduled for June 24, 2013. That date may be extended by the sellers to a date no later than September 30, 2013.
The buyers on the contract agreement are from Menlo Park, CA-based GI Partners.
In August 2007, Hines REIT acquired One Wilshire, a 30-story, 664,248 square foot office and retail building, for what was reported at $287 million. Designed by Skidmore, Owings & Merrill and opened in 1966, the property underwent a major renovation in 1992. Its space includes a five-level subterranean parking garage for 524 cars.
In 2008, Hines REIT acquired the Raytheon and DIRECTV buildings, a two-building office complex in the South Bay submarket in El Segundo, California, from Newkirk Segair L.P. Located on a 6.14-acre site along Imperial Highway Corridor near the junction of the 405 and 105 freeways, the complex comprises 550,580 rental square feet distributed in two 11-story Class A office buildings, including two levels of office space on top of the 10-story parking garage. The complex was completed in 1976.
The sale of the El Segundo Property is subject to a Raytheon Right of First Refusal, which requires the seller to allow forty-five days for the beneficiary of the right of refusal to exercise or waive its right. If the Raytheon Right of Refusal is exersized, then the agreement will be deemed automatically modified to delete the El Segundo Property and to apply only to the One Wilshire Property.
GI Partners Managing Director Alexander Fraser, who also currently serves on the board of Boston-based STAG Industrial (NYSE: STAG), and Michael Wong, a Vice President with the firm, are listed as the contacts for the buyer.