WASHINGTON, D.C. — Hines, an international real estate developer, has increased its ownership of the $700 million, mixed-use CityCenterDC project in Washington, D.C., after buying the ownership interest of its partner Archstone.
Hines announced the acquisition a day after apartment owners AvalonBay Communities Inc. (AVB) and Equity Residential (EQR) said they completed their purchase of Archstone in a cash-and-stock deal valued at $16 billion. The total deal included the assumption of approximately $9.5 billion in debt.
“We have enjoyed working with Archstone and are proud to complete and manage this momentous development for D.C.,” says Jeff Hines, president of Houston-based Hines. “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.”
The CityCenterDC project includes a mix of condominiums, apartments, offices, public spaces, restaurants, shops and a hotel.
Neil Brown, Archstone's chief development officer, adds, “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.”
In addition to increasing its ownership in the mixed-use project, Hines will assume development responsibility for the two large apartment buildings comprising of 458 units at CityCenterDC.
Phase I of the mixed-use project is currently under construction and includes offices, condominiums and apartments. Construction on Phase II of CityCenterDC is expected to begin in the first half of 2014. It will include a 370-room luxury hotel and an additional 73,000 square feet of retail space.
Hines has been expanding its multifamily development business since it was established in January 2011. The firm currently has approximately 5,500 units in various stages of development, representing more than $1 billion of construction in 12 U.S. cities.
— Rachel Goff