(SAN DIEGO) – Hines, the global real estate firm, today announced that it has acquired a 232,000-square-foot industrial portfolio consisting of two Class-A industrial buildings in San Diego, on behalf of Hines U.S. Property Partners Fund (“HUSPP” or the “Fund”), the firm’s flagship commingled U.S. core plus fund. The seller of the portfolio is Murphy Development Company. This acquisition offers a strategic opportunity to acquire an at-scale Class A industrial portfolio in San Diego’s largest industrial submarket.
The Otay Mesa Industrial Park consists of two buildings totaling over 230,000 square feet with 32-foot clear heights and flexible design to accommodate single or multi-tenant uses. The assets are located in San Diego’s Otay Mesa submarket, the city’s largest industrial submarket, serving as a major port of entry for goods and cross-border labor on the United States-Mexico border. The two buildings are built to modern specification which are expected to appeal to a wide range of users including tenants who need warehouse, distribution, and manufacturing capability. Additionally, the Fund is under contract to acquire the two adjacent properties comprising an additional 203,000 square feet with expected construction completion in the second quarter of 2023.
“This investment is directly in line with the Fund’s strategy to acquire industrial properties within urban infill locations as well as established regional distribution nodes,” said Adriana de Alcantara, HUSPP fund manager at Hines. “This is a key acquisition to increase the attractiveness and value of our portfolio as we anticipate additional acquisitions in the coming year in line with this strategy.”
“This marks the firm’s third industrial acquisition in San Diego in the last 18 months,” added Eric Hepfer, managing director at Hines. “This expansion is indicative that the market is primed for growth as we aim to meet tenant demand with this new Class-A industrial asset.”
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, strategic submarket and sector selection, operationally driven 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.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 285 cities in 28 countries. Hines oversees investment assets under management totaling approximately $90.3 billion¹. In addition, Hines provides third-party property-level services to 373 properties totaling 114.2 million square feet. Historically, Hines has developed, redeveloped or acquired approximately 1,530 properties, totaling over 511 million square feet. The firm currently has more than 198 developments underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a foundational commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world. Visit http://www.hines.com for more information.
¹Includes both the global Hines organization as well as RIA AUM as of December 31, 2021.
About Hines U.S. Property Partners
Hines U.S. Property Partners is Hines’ flagship institutional investment fund targeting core-plus returns. The fund is a multi-sector, perpetual, diversified fund targeting next-generation assets in top-performing submarkets in major U.S. markets. It is managed by a dedicated team including Adriana de Alcantara, Fund Manager; Charlie Dreyfus, Assistant Fund Manager; Ali Siby, Assistant Fund Manager and Cher Yao, Assistant Fund Manager.