Hines Buys Two Rockville Pike Office Buildings From JBG

One of the world's biggest development firms is making a splash in Montgomery County.

Texas-based Hines has purchased North Bethesda I and II, a combined 346k SF in two office buildings near the White Flint Metro, from JBG for $54.6M (about $158/SF). The building is 49% leased with tenants like Whole Foods' regional HQ and the National Cancer Institute, but Hines is planning a major capital upgrade to take advantage of its transit proximity and location on Rockville Pike.

The upgrades will include a fitness facility and conference center. That's adding to the renovations JBG just finished in 2015 to the lobby. Cushman & Wakefield senior managing director Eric Berkman brokered the transaction. He told Bisnow today that from start to finish, the deal took about 60 days.

"Hines came in with a bucket of cash and some great ideas on how to reposition it," Eric says. "There's a lot of upside in this deal."

Eric said there was plenty of activity on the property, but all of the interested parties were domestic. JBG decided to shed the building to focus on other priorities. It could also help clean up the books if the developer decides to go public this year or sell a big portfolio, as has been speculated.

The deal could very likely come up as an example of a smart, value-add buy at Bisnow's Montgomery County State of the Market event on Feb. 17.

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