Hines sells 5 LNR Warner Center buildings to Oaktree Capital for $235.5M

Hines will continue to lease the campus: sources

Feb.February 10, 2017 06:31 PM
A building at LNR Warner Center and Oaktree CEO Jay Wintrob (via Hines, Oaktree)

Buildings in Warner Center are selling like hotcakes.

First, Starwood sold its two Warner Center buildings to a partnership between Angelo, Gordon & Co. and Lincoln Property Company for $150 million, or $295 a square foot, in October. Now, Hines has sold an earlier phase of the master-planned office campus, The Real Deal has learned.

Los Angeles-based investment firm Oaktree Capital Management, led by CEO Jay Wintrob, purchased five office buildings totaling 808,050 square feet — in addition to two parking structures — from Hines for $235.5 million, or $291 a square foot, in a deal that closed earlier this week, RCA shows.

Oaktree does not operate the properties it invests in and typically brings on a partner. In this case, Hines will continue to lease the property, collecting fee income, sources told TRD.

Eastdil Secured brokered the deal for the buildings at 2127, 21281 and 21301 Burbank Boulevard, as well as 5700 and 5820 Canoga Avenue. A representative of the brokerage could not be reached for comment.

The property is 99 percent leased, CoStar shows. Tenants include Health Net of California, which occupies more than 40 percent of the complex.

Hines interests bought LNR Warner Center for $311 million in 2006 as part of its joint venture with Japan’s Sumitomo Life Realty.

Hines was rumored to have put the property up for sale amid speculation of a loan default, TRD reported in September. 

A $174 million CMBS loan attached to the property was transferred to special servicing due to the possibility of a default, according to CMBS data analytics firm Trepp. A spokesperson for Hines said the loan was transferred “for purposes of discussing a potential extension.”

The price-per-square foot price on the sale to Oaktree was roughly on par with the other portion of the campus that recently traded, and with other Class A office deals in the area.
Representatives of Hines and Oaktree did not respond to requests for comment.

Related Articles

Twin 44-story Century City Plaza Towers

Hines, JPMorgan asset arm nab $1.2B refi on Century City office twin towers

La Mirada industrial building

Clarion pays $77M for La Mirada industrial project

510 Park Avenue and CEO of Monster Beverage Rodney Sacks

Monster Beverage affiliate guzzles down industrial project in San Fernando

Larry Green, Unibail-Rodamco-Westfield’s EVP for US Development, and a drawing of the planned stadium (Credit: Unibail-Rodamco-Westfield)

Billion-dollar Warner Center megaproject faces another hurdle

Larry Green, Unibail-Rodamco-Westfield’s EVP for US Development, and a drawing of the planned stadium (credit: Unibail-Rodamco-Westfield)

Westfield Promenade stadium clears major hurdle in approvals

6033 N. De Soto Avenue (Credit: Google Maps)

Development plans at Warner Center now include a 190-unit senior facility

From left: Saeed Nourmand, Michael Nourmand, Grant King and Richard Heyman

Relevant Group sues Nourmand & Associates’ founder, alleging extortion over hotel projects

Centennial founder and CEO Steven Levin with a rendering of the project

Centennial Real Estate approved for sprawling $300M mixed-use village