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
| Aug 5, 2014
Will driverless cars kill the parking structure?
A report from Deloitte highlighted how driverless cars could dramatically alter car ownership in the future, pushing the pendulum from ownership to rentals and ride sharing.
| Aug 5, 2014
K-12 School Sector Giants: Pent-up demand finally produces movement in schools market [2014 Giants 300 Report]
After a long period of anemic performance, with growth mostly driven by renovations and additions, the K-12 sector is showing renewed interest in new construction, according to BD+C's 2014 Giants 300 Report.
| Aug 4, 2014
Jean Nouvel commissioned to design Islam Museum next to WTC
El-Gamal's plans has been dubbed controversial by many industry professionals.
| Aug 4, 2014
Facebook’s prefab data center concept aims to slash construction time in half
Less than a year after opening its ultra-green, hydropowered data center facility in Luleå, Sweden, Facebook is back at it in Mother Svea with yet another novel approach to data center design.
| Aug 4, 2014
Retail Giants: Grocery-anchored centers, trophy malls among hot retail developments [2014 Giants 300 Report]
Despite the rapid growth of online shopping, the 'bricks and mortar' retail sector is faring quite well, headed by power centers, grocery-anchored centers, and trophy malls, according BD+C's 2014 Giants 300 Report.
| Aug 4, 2014
BIM Giants: Firms enhance BIM/VDC with advanced collaboration tools [2014 Giants 300 Report]
Cloud-based data sharing, rapid iterative design, and cross-discipline collaboration are among the emerging trends in the BIM/VDC field, according to BD+C's 2014 Giants 300 Report.
| Aug 1, 2014
Best in healthcare design: AIA selects eight projects for National Healthcare Design Awards
Projects showcase the best of healthcare building design and health design-oriented research.
| Aug 1, 2014
Recession recovery spotty among American cities: WalletHub report
Texas metros show great momentum, but a number of Arizona and California cities are still struggling to recover.
| Jul 30, 2014
Higher ed officials grapple with knotty problems, but construction moves ahead [2014 Giants 300 Report]
University stakeholders face complicated cap-ex stressors, from chronic to impending. Creative approaches to financing, design, and delivery are top-of-mind, according to BD+C's 2014 Giants 300 Report.
| Jul 30, 2014
German students design rooftop solar panels that double as housing
Students at the Frankfurt University of Applied Sciences designed a solar panel that can double as living space for the Solar Decathlon Europe.