Hines Global REIT II, Inc. has entered into a contract to acquire Cottonwood Corporate Center, a four-building, Class-A office project located in Cottonwood, Utah, a submarket of Salt Lake City, Utah, for the contract purchase price of $140 million.
The Seller is NOP Cottonwood Holdings, LLC. Hines Global II expects the closing of this acquisition to occur on or about June 10, 2016, subject to a number of closing conditions.
Constructed between 1997 and 2000, Cottonwood Corporate Center offers 490,030 square feet of net rentable area and is 91 percent leased. SanDisk leases 153,201 square feet, or approximately 31%, of the net rentable area of Cottonwood Corporate Center, under a lease that expires in September 2021. Extra Space Storage leases 71,852 square feet, or approximately 15%, of the net rentable area of Cottonwood Corporate Center, under a lease that expires in January 2028.
The remaining space is leased to 23 tenants, none of which individually lease more than 10% of the net rentable area of Cottonwood Corporate Center.
Hines Global II expects to fund the acquisition using proceeds from its public offering, borrowings from its credit facility with Hines Interests Limited Partnership and a secured mortgage from a third party. Hines Global II funded a $2.0 million earnest money deposit on May 16, 2016. The closing date can be extended 30 days at Hines Global II’s option with an additional $2.0 million deposit.