Partnership acquires two large Lenexa commercial developments
12/23/2013 4:57 PM
12/23/2013 4:57 PM
Two large suburban office and industrial developments in Lenexa have been sold to a partnership that includes a company with significant property investments in the Kansas City area.
The developments — Southlake Technology Park and Lenexa Industrial Park — were acquired by Hines, an international real estate firm, and a subsidiary of a real estate fund managed by Oaktree Capital Management LP.
The total amount of leasable space is about 1.67 million square feet in 40 buildings.
The seller was CommonWealth REIT, a real estate investment trust based in Newton, Mass. CommonWealth had owned the parks for about five years, since they were acquired along with several other properties for about $112 million.
The purchase price was not disclosed in Monday’s announcement.
“These properties represent the largest blocks of vacancy in the office (market) in southern Johnson County,” Tom Danilek, Hines’ senior managing director, said in a statement.
Danilek said the buyers were also attracted to the two developments “due to the parks’ superior location … as well as the more than 69 acres of fully entitled land for future office and industrial development.” The two parks are near the Interstate 35, Interstate 435 and Kansas 10 corridor.
Hines, which has its U.S. headquarters in Houston, has been involved in the Kansas City area real estate market since 1971. Its area property portfolio includes Science City at Union Station, H&R Block’s world headquarters and two Crown Center office buildings — 2345 Grand and 2555 Grand.
Oaktree, based in Los Angeles, has nearly $80 billion in assets under management.
Construction of Southlake began in 1987 and was completed in 2002. It has 15 office buildings totaling 933,000 square feet and 10 sites of vacant ground on about 53 acres.
Development of Lenexa Industrial Park began in the 1970s and was completed in 1999. The park has 25 properties and 736,000 square feet of space designed for industrial and other usage. It also has four sites totaling 16 acres available for future development.
The two parks are currently about 67 percent occupied, said Hines, which will be the property manager on both. Hines currently manages 378 properties and has assets of about $25.2 billion.