The Washington D.C. office of Hines, the international real estate firm, announced the acquisition of the ownership interest of their partner, Archstone, in the mixed-use CityCenterDC project that is currently under construction in downtown Washington, D.C.
The acquisition of Archstone's interest in CityCenterDC was completed in connection with the acquisition by Equity Residential and AvalonBay Communities of Archstone Enterprises LP.
The Hines | Archstone partnership was chosen by the District of Columbia in 2003 to develop the massive $700 million project on the site of the city's old convention center. In 2011, the partnership secured equity financing from its anchor investor Qatari Diar Real Estate Investment Company, the real estate investment arm of the Qatari Investment Authority, and the financing was put in place by Barwa Bank's investment banking subsidiary, The First Investor (TFI), which is a co-investor and manages the dedicated TFI U.S. Real Estate Fund. Construction began on Phase I of the project in March 2011.
In addition to increasing its incremental ownership in the overall mixed-use project, Hines will assume development responsibility for the two large apartment buildings comprising 458 units in the center of CityCenterDC. The firm's rapidly expanding multifamily residential development business was established in January 2011 and currently has approximately 5,500 units in various stages of development, representing more than $1 billion of construction in 12 U.S. cities.
Hines President Jeff Hines commented, "The project's momentum in office leasing, strong residential condominium sales and widespread interest among retailers and restaurants make CityCenterDC an excellent vehicle for further investment. We have enjoyed working with Archstone and are proud to complete and manage this momentous development for D.C."
Neil Brown, Archstone's chief development officer, added, "Archstone and Hines have worked together hand-in-glove on this project for the last decade, and there is no better outcome for the project than for Hines to assume full oversight of this massive mixed-use development. Additionally, many of the very talented Archstone employees, who have been a part of this project for so many years, are being absorbed into the Hines organization, which will insure a seamless transition and minimize disruption to the project. This has been the most exciting project that I have been involved with in a nearly 30-year career, and it is comforting to know that it will be brought to completion by the extraordinary combination of Hines and its newest employees from Archstone."
Construction on Phase II of CityCenterDC is expected to commence in the first half of 2014. It will consist of a 370-room luxury hotel and an additional 73,000 square feet of retail space.
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm's historical and current portfolio of projects that are underway, completed, acquired and managed includes 1,208 properties representing more than 488 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments. Currently, Hines manages 379 properties totaling 137 million square feet, which includes 66 million square feet for third parties. With offices in 104 cities in 18 countries, and controlled assets valued at approximately $23.8 billion, Hines is one of the largest real estate organizations in the world. Hines is also a world leader in sustainable real estate strategies, with extensive experience in LEED®, ENERGY STAR®, BREEAM, Haute Qualite Environnementale and DGNB green building rating systems. Visit www.hines.com for more information.
Related Stories
BIM and Information Technology | Mar 4, 2015
Why China's CCTV building needed a WiFi retrofit
It took a year-long retrofit to get WiFi transmission issues solved at China's iconic skyscraper.
High-rise Construction | Mar 4, 2015
Must see: Egypt planning 656-foot pyramid skyscraper in Cairo
Zayed Crystal Spark Tower will stand 200 meters tall and will be just a short distance from the pyramids of Giza.
Multifamily Housing | Mar 3, 2015
10 kitchen and bath design trends for 2015
From kitchens made for pet lovers to floating vanities, the nation's top kitchen and bath designers identify what's hot for 2015.
Office Buildings | Mar 3, 2015
Former DuPont lab to be converted into business incubator near UPenn campus
The new Pennovation Center will provide collaborative and research spaces for educators, scientists, students, and the private sector.
K-12 Schools | Mar 2, 2015
BD+C special report: What it takes to build 21st-century schools
How the latest design, construction, and teaching concepts are being implemented in the next generation of America’s schools.
Codes and Standards | Mar 2, 2015
Proposed energy standard for data centers, telecom buildings open for public comment
The intent of ASHRAE Standard 90.4P is to create a performance-based approach that would be more flexible and accommodating of innovative change.
K-12 Schools | Mar 1, 2015
Are energy management systems too complex for school facility staffs?
When school districts demand the latest and greatest, they need to think about how those choices will impact the district’s facilities employees.
Industrial Facilities | Feb 27, 2015
Massive windmill will double as mixed-use entertainment tower in Rotterdam
The 571-foot structure will house apartments, a hotel, restaurants, even a roller coaster.
Office Buildings | Feb 26, 2015
Using active design techniques to strengthen the corporate workplace and enhance employee wellness
The new Lentz Public Health Center in Nashville, Tenn., serves as a model of how those progressive and healthy changes can be made.
K-12 Schools | Feb 26, 2015
Should your next school project include a safe room?
Many school districts continue to resist mandating the inclusion of safe rooms or storm shelters in new and existing buildings. But that may be changing.
