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Hines Global REIT II Buys Salt Lake City Office Campus for $140 Million

Hines Global REIT II Inc., a publicly registered non-traded real estate investment trust, purchased Cottonwood Corporate Center in the Salt Lake City suburb of Cottonwood, Utah for $140 million. NOP Cottonwood Holdings was listed as the seller, according to a filing with the Securities and Exchange Commission.

Cottonwood Corporate Center is a four-building, class A office campus that was constructed between 1997 and 2000. The 490,030-square-foot property is LEED Gold certified and 91 percent leased to 25 tenants, including SanDisk, a data storage technology firm, and Extra Space Storage, a publicly traded real estate investment trust.

Hines Global REIT II funded the acquisition using proceeds from its public offering, an advance under its credit facility with Hines Interests Limited Partnership, and a $78 million loan from Principal Life Insurance Company.

The estimated going-in capitalization rate for Cottonwood Corporate Center is approximately 6.9 percent.

Hines Global REIT II focuses on investing in a diversified portfolio of commercial real estate properties in the United States and abroad. The company went effective in August 2014 and has raised $160 million in investor equity since inception. Since its last quarterly filing with the SEC, the company owned three properties.

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