HINES GLOBAL REIT TO ACQUIRE HOCK PLAZA FOR $98.3 MILLION
DURHAM, N.C. — Hines Global REIT, a subsidiary of Houston-based real estate firm Hines, has entered into an agreement to acquire Durham's Hock Plaza for $98.3 million. In a filing with the Securities and Exchange Commission, Hines Global REIT states that it will fund the purchase with proceeds from its current public offering as well as the assumption of an existing $80 million mortgage, which has already been approved by its board of directors. The loan matures in December 2015 and carries a 5.58 percent fixed interest rate. Hines expects the transaction to close this June, but if the deal does not consummate, it will forfeit $5 million in earnest money deposits.
Hock Plaza is a 12-story, 327,160-square-foot office building located at 2424 Erwin Road in the city's North Durham submarket. Constructed in 2004 by Hock Development, the Class A structure is anchored by Duke University Medical Center, which is leasing approximately 160,000 square feet of it. Other Duke affiliates occupy the remainder off the building, which has an overall occupancy rate of 98 percent.
The seller in the deal is New York-based Brickman, which purchased the property in 2005. Representing the seller was the Holliday Fenoglio Fowler team of Jeff Hollinden, Glenn Whitmore, Andrew Scandalios and Barbara Guffey, which received the assignment in December. Holliday Fenoglio Fowler also arranged the 2005 sale of the property to Brickman.