HOUSTON, TX – Hines, the global real estate investment manager, today announced the acquisition of the Titusville Logistics Center, a nearly 250,000-square-foot, Class A industrial property strategically located in Florida’s Space Coast submarket. The property was acquired on behalf of Hines U.S. Property Partners (“HUSPP” or “the Fund”), Hines’ U.S.-focused core-plus fund, just ahead of the three-year anniversary of the fund’s first investment . The property is fully leased to credit aerospace tenants, and highlights the growing opportunity for investors to capitalize on the boom in the space exploration sector’s real estate needs.
The Space Coast, comprising the area in and around Cape Canaveral Florida, is one of the world’s most popular rocket launch sites[1]. The area requires mission-critical logistics properties to support the surrounding aerospace activities and is substantially undersupplied. According to Hines Research, as of Q3 2024 Brevard County’s industrial market, where the Space Coast is located, has just a 3% vacancy rate and just over 330,000-square-feet of space under construction, 65% of which is pre-leased.
“The Titusville Logistics Center is an exceptional property with under market rents and credit tenants that fulfill critical needs for the surrounding Space Coast submarket,” said Alfonso Munk, Hines Co-Head of Investment Management. “We will likely look back on 2025 as a pivotal moment of recovery in many areas of the commercial real estate sector and we are on the offensive for our investors in what we consider our global target sectors – including industrial, living, retail and office credit. “This acquisition highlights our continued commitment to capitalizing on the significant opportunities in today’s market environment.”
Hines is already active in the Space Coast following their ongoing work at Space Coast Innovation Park, a 3 million-square-foot industrial development located less than two miles from Titusville Logistics Center. Phase 1 is expected to break ground in the first half of 2025 and will bring 640,000-square-feet of Class A industrial product to the Space Coast.
"The Space Coast stands out as a prime location, supported by the influx of significant capital into the space exploration sector," said Ryan Wood, Managing Director at Hines. We see this as a lasting trend, with the region poised to benefit from sustained growth and innovation in this dynamic industry."
The acquisition of the Titusville Logistics Center brings HUSPP’s Gross Asset Value (GAV) to more than $2.5 billion, representing 500% growth in GAV from its seed portfolio. Since Q1 2024, HUSPP has deployed $787 million by GAV, including acquisitions in some of Hines’ highest-conviction sectors.
In other recent activity, HUSPP also:
- Closed on Boulevard Oaks, a 10-asset infill industrial portfolio in Houston, Texas that is fully leased with a short weighted average lease term and rents below market.
- Completed the leasing of Britannia Tech Park II. This Class A industrial property is 203,244-square-feet and is located in the Otay Mesa submarket.
- Acquired two self-storage assets, including Extra Space Self Storage in Cerritos, California, in the largest self-storage acquisition in California for 2024. The two self-storage acquisitions bring HUSPP’s alternatives allocation to nearly 10% of the Fund.
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About Hines
Hines is a leading global real estate investment manager. We own and operate $93.0 billion¹ of assets across property types and on behalf of a diverse group of institutional and private wealth clients. Every day, our 5,000 employees in 31 countries draw on our 67-year history to build the world forward by investing in, developing, and managing some of the world’s best real estate. To learn more, visit www.hines.com and follow @Hines on social media.
ÂąIncludes both the global Hines organization and RIA AUM as of June 30, 2024
[1] Source: Orlando Sentinel article “SpaceX launch on final day of 2024 raises Space Coast tally to 93 for the year.” December 31, 2024
