A joint venture group purchased Renaissance Square, a two-tower office and retail plaza in Downtown Phoenix, for $151.25 million, a source close to the deal reported.

In an announcement the new ownership group released Wednesday, future plans call for a $50 million upgrade to the office towers, with plans to update the lobbies, plaza and indoor/outdoor tenant conference center at Renaissance Square.

In a joint venture, Oaktree Capital Management, L.P., and Cypress Office Properties, LLC, purchased Renaissance square from Hines U.S. Core Office Fund, L.P.

“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.

Eastdil Secured represented Hines and Oaktree represented itself in the transaction.

Renaissance Square is located at Central Avenue and Adams Street, next to the light rail, and includes One Renaissance Square, a 25-story, 494,004-square-foot office tower, and Two Renaissance Square, a 27-story, 474,786-square-foot office tower.

There is also retail space available within Renaissance Square, and the entire property makes up nearly one million square feet. In November, Renaissance Square won a TOBY Award from BOMA Greater Phoenix for buildings 500,000 to 1,000,000 square feet.

There is a skybridge connecting the two office towers in Downtown Phoenix. One and Two Renaissance Square were designed by Emery, Roth & Sons Inc. One Renaissance was completed in 1987 and Two Renaissance was completed in 1989.

Tenants at Renaissance Square currently include major national and regional law firms such as 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.

“We are committed to making a major investment to transform Renaissance Square into Phoenix’s premier office property. We fully expect this project to play a critical role in Downtown Phoenix’s continued evolution to national renown and look forward to working with the city to that end,” said Mark Jacobs, managing director of Oaktree.

Christine Mackay, economic development director for the City of Phoenix, said the renovations for this project are exciting, and the city is excited for the new tenants that Oaktree plans to bring to the development.

“The revitalization of this iconic project will bring new life into downtown, and the plans to renovate the buildings are absolutely amazing,” she said.