Two Lenexa, Kan., office and industrial properties comprising 40 buildings and 1.67 million square feet of space have been sold in a deal that enhances the Kansas City-area résumé of a Houston-based real estate firm.
Hines, the Houston firm, and a subsidiary of a real estate fund managed by Oaktree Capital Management, a Los Angeles-based investment management firm, have acquired Southlake Technology Park and Lenexa Industrial Park. Terms of the deal were not disclosed, but the Kansas City Business Journal reports that Hines submitted a high offer of $89 million for the portfolio.
The properties were previously owned by Boston-based CommonWealth REIT, which purchased them in 2008 for $118 million.
Executives from Hines and Oaktree said the properties’ locations — both are situated near the junction of Interstate 35, Interstate 435 and Kansas 10 in suburban Kansas City — made them ideal fits for the firms’ portfolios.
“These properties represent the largest blocks of vacancy in office product in southern Johnson County,” Tom Danilek, Hines senior managing director, said in a release. “Hines and Oaktree were attracted to the industrial buildings due to the parks’ superior location at the epicenter of the flex industrial market, as well as the more than 69 acres of fully entitled land for future office and industrial development.”
Hines has been involved in a handful deals in the last decade involving prominent Kansas City properties. The company’s work includes the Science City at Union Station and H&R Block World Headquarters developments, and acquisitions of the 2345 Grand and 2555 Grand office buildings.
“We are extremely pleased that Hines has purchased two of our signature properties,” Blake Schreck, president of the Lenexa Chamber of Commerce, said in a release. “It is exciting to have a partner with that kind of energy and vision in our community.”