HOUSTON – (Realty News Report) –Hines has sold two industrial distribution properties in Texas totaling1.8 million SF to the KKR investment firm for $171 million.
The two industrial properties, located in Houston and Dallas, were developed by Hines. The buildings were not identified. Both are fulfillment centers with an average vintage 2019. The properties are100 percent leased to two different investment grade tenants on a long-term basis.
Demand for industrial distribution space has soared as e-commerce retailing has expanded.
“As more consumers migrate to shopping online and expect a seamless delivery experience, the demand for modern logistics real estate in major markets continues to grow,” said Roger Morales, KKR Partner and Head of Commercial Real Estate Acquisitions in the Americas. “We are excited to help meet that demand by increasing our footprint in the Dallas and Houston markets with the addition of these two high-quality, stable assets.”
Hines has been involved in industrial deals with KKR before. In 2012, Hines announced it had formed a joint venture with KKR & Co., the private equity firm founded by Henry Kravis and George Roberts, to develop the Pinto Business Park, a 971-acre project located at the southwest corner of Beltway 8 and Interstate 45 in Houston. The business park is owned by Pinto Development Realty Inc.
At build-out, Pinto Business Park is projected to include more than 7 million-sf of space at build-out. A number of companies have located facilities iin recent years, including Coca Cola and HD Supply.
Across its funds, KKR owns over 20 million square feet of industrial property in strategic locations across major metropolitan areas in the U.S.
Since launching a dedicated real estate platform in 2011, KKR has grown real estate assets undere management to approximately $14 billion across the U.S., Europe and Asia as of September 30, 2020.
Dec. 8, 2020 Realty News Report Copyright 2020
Caption: Hines’ Pinto Park development in Houston. Photo credit: Hines
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File: (2) Hines Sells Industrial Properties in Texas.. KKR. Pinto Park. Roger Morales. 12-8-20