(NEW YORK) – Hines, a global real estate investment, development, and property manager, today announced that Hines U.S. Property Partners (“HUSPP” or the “Fund”), the firm’s flagship commingled U.S. core plus fund, has acquired The Source, a 262,000-square-foot retail center in White Plains, NY, anchored by Whole Foods. Serving as HUSPP’s first acquisition in the New York metro area and first grocery-anchored retail acquisition, this announcement represents the firm’s confidence in the continued recovery of the retail sector.
“Retail is poised for a resurgence and Hines is at the forefront of pursuing opportunities that carry the potential to reenergize brick-and-mortar shopping experiences,” said Alfonso Munk, CIO of Americas, Hines. “Grocery-anchored retail assets, like The Source, that are high-yielding in today’s economic environment and are located in a high-barrier to entry market with infill and dense locations are extremely attractive for continued growth and increased value for our investor base.”
The Source is currently 99% occupied with five retail tenants and two office occupiers. In addition to Whole Foods, retail tenants include the Cheesecake Factory, Raymour & Flanigan, Dick’s Sporting Goods, and the NY State Department of Motor Vehicles. Office tenants include The Hudson Gateway Association of Realtors (HGAR) and the U.S. headquarters of Danone, a French multinational food-products corporation with a market capitalization of $33.3 billion. Indicating their confidence in the location’s future, both Whole Foods and Dick’s Sporting Goods recently renewed their leases for ten years. The Source is situated on a highly-trafficked corner, neighboring Simon’s Westchester Mall and Bloomingdale’s. In addition to its close proximity to New York City, White Plains itself is rapidly growing as a residential destination: more than 7,000 units of housing have been recently built or are under construction.
“We have been watching key suburban New York markets where there is population growth and economic stability, a continued need for large format retail, and where there has been a reduction in retail supply over the last decade with the conversion of many older retail properties into residential development sites,” said Jason Alderman, senior managing director and city head of the New York office of Hines. “We are excited to be acquiring the Source at an attractive going-in yield with strong tenancy and term, and the potential for upside with active management for our tenants and customers.”
HUSPP is an open-ended, diversified fund targeting innovative assets in top-performing submarkets throughout the United States. The fund’s strategy is to “buy, build, and manage to core” through research-driven portfolio construction, smarter submarket and sector selection, vertically integrated value creation, and products designed for future demand. HUSPP expects to continue to invest across the living, industrial, office and mixed-use sectors, as well as select alternative sectors, such as life sciences, self-storage, to construct a diversified portfolio that targets a balance of yield and growth.
Hines is a global real estate investment, development and property manager. The firm was founded by Gerald D. Hines in 1957 and now operates in 30 countries. We manage nearly $96B¹ in high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 685 properties totaling nearly 216 million square feet globally. We are committed to a net zero carbon target by 2040 without buying offsets. To learn more about Hines, visit www.hines.com and follow @Hines on social media.
¹Includes both the global Hines organization and RIA AUM as of December 31, 2022.