HOUSTON – (Realty News Report) – Hines has sold two industrial distribution properties in Texas, totaling 1.8 million square feet, to the investment firm KKR for $171 million.
The properties, developed by Hines and located in the Houston and Dallas markets, are modern fulfillment centers completed around 2019. Both buildings are fully leased to two separate investment-grade tenants on long-term agreements.
Demand for industrial distribution space has surged as e-commerce continues to expand and consumers increasingly expect fast, reliable delivery.
“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 and KKR have a prior working relationship. In 2012, Hines announced a joint venture with KKR & Co. to develop the Pinto Business Park, a 971-acre project at the southwest corner of Beltway 8 and Interstate 45 in Houston. Pinto Development Realty Inc. owns the business park.
At full build-out, Pinto Business Park is expected to comprise more than 7 million square feet of industrial and logistics space. Several companies have established facilities there in recent years, including Coca-Cola and HD Supply.
Across its funds, KKR owns more than 20 million square feet of industrial property in strategic locations throughout major U.S. metropolitan areas.
Since launching a dedicated real estate platform in 2011, KKR’s real estate assets under management grew 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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