(HOUSTON) – Hines, the 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 closed on four investments totaling approximately $200 million in investment volume spanning two key property types: industrial and alternatives. Navigating the headwinds of today’s market complexities, these acquisitions demonstrate Hines’ strategy to identify opportunities and employ measures that seek to optimize returns and mitigate risks in this evolving landscape.
“Our commitment to seizing opportunities and diversifying our assets is not just a strategy, but a testament to our dedication to investor success,” said Adriana de Alcantara, HUSPP fund manager at Hines. “By carefully navigating the changing dynamics of today’s market environment and focusing on high-quality assets with strong fundamentals, we aim to fortify our position for sustained, diversified growth.”
The four investments include:
Warm Springs Industrial Park, Fremont, CA.
Warm Springs Industrial Park represents nearly 141,500-square-feet of combined footage across two fully leased multi-tenant industrial buildings. This acquisition marks HUSPP’s second R&D/Flex industrial acquisition in the Warm Springs District and expands Hines’ footprint in a vital sector in a growing sub-market.
CapMed Portfolio, Maryland
The CapMed portfolio contains two purpose-built healthcare facilities. This is the Fund’s first healthcare acquisition and delivers on HUSPP’s goal to increase alternatives exposure in the medical outpatient building sector. It is also the Fund’s first acquisition in the D.C. metro area, a market that indicates strong fundamentals and demographics including an established healthcare ecosystem and increasing healthcare employment growth.
301 Logistics, Tampa, FL.
301 Logistics, the Fund’s first industrial acquisition in the southeast United States, is a 390,000-square-foot industrial asset. Fully leased to Cirkul, an innovative water bottle and flavor cartridge beverage company, this acquisition further establishes Hines’ presence in what is considered to be a high barrier to entry industrial market.
Brownfield Tech Park II, San Diego, CA.
Brown Field Tech Park II is a newly constructed two-building Class A industrial asset totaling 203,244 square feet. The Fund also acquired Brown Field Tech Park I in June 2022, a two-building Class A industrial asset totaling 229,2680 square feet, and a 9.5-acre land parcel in July 2023 with plans to develop a 173,500-square-foot industrial logistics building, bringing the Fund’s total portfolio to over 600,000 square feet in Otay Mesa, San Diego’s largest industrial submarket.
HUSPP is an open-ended, diversified fund targeting next-generation 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 product 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, and others, to construct a diversified portfolio that targets a balance of yield and growth.
The Fund has secured a diverse investor base of over 20 institutional investors comprised of U.S., European and Asian public and private pension plans, insurance companies, high net-worth individuals, banks, non-profit organizations, and family offices. As an open-ended fund, HUSPP is expected to continuously raise capital and become a largescale, multi-billion-dollar institutional fund targeting core plus returns in the U.S. market.
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 a $94.6B¹ portfolio of high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 790 properties totaling over 269 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 as well as RIA AUM as of June 30, 2023.