Hines Acquires Development Parcel

IRVINE, CA-Hines has acquired a 6.25-acre site next to its 2211 Michelson office tower that is entitled for 200,000 sf of commercial development. The company says it has not decided what it will build on the property, which is occupied by a 120,000-sf industrial building, but it says that it plans to raze the existing building for a new development after the tenant vacates in early 2007.

Doug Holte, western regional partner and director of Hines’ Orange County and San Diego operations, says the development firm was attracted by the property’s location at 18582 Teller Ave., near the intersection of Jamboree Road and Michelson Drive in the Irvine Business Center. The company is reviewing possible developments for the site and expects to announce project plans late this year or early next year, he says.

The existing building on the new Hines property is occupied by Cisco-Linksys, a division of Cisco. Hines acquired the parcel from Cigna Realty Investors, with Hines represented by David Whitney of Lee & Associates and the seller represented by Steve Schloemer and Patrick Remolacio of Colliers International.

The adjacent 2211 Michelson building is a 266,000-sf office project under construction at 2211 Michelson Dr. by Hines and Crescent Real Estate Equities. The 2211 Michelson development is a 12-story tower that is slated for completion in 2007.

The joint venture of Houston-based Hines and Fort Worth-based Crescent Real Estate Equities that is building the project is called Hines/Crescent Irvine. The site, which was a surface parking lot before the joint venture acquired it for development, has been planned for some time as the location of a fourth and final office building for the Von Karman Towers campus.