Real Estate: KKR Buys the Summit from Hines Global REIT
The deal goes for $756 million.
Hines Global REIT is a non-traded real estate investment trust that has been selling properties and winding down operations.
Last week, the firm announced that it had sold The Summit portfolio in Bellevue, Washington to KKR. The contract price was $756 million.
The Summit consists of two Class A Office Towers and a third tower that is currently under construction. Amazon will lease 3000 square feet of the third tower once construction ends.
Beyond Hines Global REIT
KKR also announced that they were buying another Seattle area property. The purchased the 44-story F5 Tower in Downtown Seattle for a price thought to be about $440 million. KKR has not confirmed that price. The building in 100% leased to the internet and networking company F5.
KKR managing director Justin Pattner discussed the deals.
“We are excited to be making these two real estate investments in the Puget Sound Region, a market we believe has attractive long-term growth driven by a highly educated employee base, attractive cost of living relative to other top tier markets in the U.S. and high-quality of life,” Pattner said.
Although KKR began employing real estate investments in their private equity funds since 1981, they did not stare a dedicated real estate platform until 2011. Since that time, the real estate operation has grown to $8 billion in assets with offices in nine countries around the world. They use information collected form all the business units of the firm to identify industry and demographic trends and invest in properties that will benefit.
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