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(PHOENIX) Late Wednesday funds managed by Oaktree Capital Management, L.P., (“Oaktree”) in a joint venture with Cypress Office Properties, LLC, acquired the two office towers, retail plaza and amenities that make up the nearly one million square foot Renaissance Square. Hines U.S. Core Office Fund, L.P. was the seller.
The property, which is located in the heart of Phoenix’s thriving downtown core of new retail, residences, art galleries, restaurants, sports and entertainment facilities and offices is on a full-city block bound by Adams, Central and Washington streets and 1st Avenue.
Under Oaktree’s ownership Renaissance Square will undergo a major $50 million upgrade, including renovations to the lobbies, plaza and third story indoor/outdoor tenant conference center.
One and Two Renaissance Square were designed by the architecture firm Emery, Roth & Sons, Inc., and were completed in 1987 and 1989, respectively, setting a new standard for downtown Phoenix.
The buildings, which have been occupied by the state’s most prestigious companies and law firms, are connected by a pedestrian sky bridge. The 494,004-square-foot One Renaissance Square is 25-stories and Two Renaissance Square contains 474,786 square feet and is 27 stories.
Current tenants include major national and regional law firms including Quarles & Brady, Jones, Skelton & Hochuli, Bryan Cave, Gammage & Burnham, the U.S. Attorney’s Office (District of Arizona), Ernst & Young, and Gabriel Partners, a new tenant to the Phoenix market.
“Renaissance Square’s prime location positions it to benefit from downtown’s revitalization. We are committed to making a major investment to transform Renaissance Square into Phoenix’s premier office property and we fully expect this project to play a critical role in Downtown’s continued evolution as a world-class business center,” said Mark Jacobs, Managing Director of Oaktree.
“Hines is pleased that Oaktree and Cypress acquired Renaissance Square and have kept Hines involved in the day-to-day management of the project. We believe the new owner’s vision and significant capital commitment will make Renaissance Square a premier office location,” said Chris Anderson, Managing Director of Hines.
“Renaissance Square is a center point to our Downtown market,” said Christine Mackay, Economic Development Director for the City of Phoenix. “The revitalization of this iconic project will bring new life into Downtown, and the plans to renovate the buildings are absolutely amazing! We are so excited to work with Oaktree to bring new tenants into this project!”
Oaktree is a leader among global investment managers specializing in alternative investments, with $100 billion in assets under management as of September 30, 2016. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide.
For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.
Cypress Office Properties, LLC is a San Diego-based real estate investment and operating company that specializes in acquisitions and asset management of value-add, core plus, and redevelopment office properties in key markets within the Southwest United States. The company’s primary geographic focus is San Diego, Orange County, and Phoenix, where there is tremendous upside potential.
For media inquiries or to arrange interviews please contact Jennifer Parks-Sturgeon at Jparks@RoseMoserAllynPR.com or by phone at 480.495.3806.