Hines’s core-plus open-ended US real estate fund has acquired a rental housing community in North Carolina and a 68,000sqft retail centre in Chicago in separate deals.
Hines US Property Partners (HUSPP) has acquired the Blu South rental housing community at 920 Blu Central Road in Pineville, North Carolina from Landmark Properties and has also purchased the North & Clybourn retail centre at 850, 900 and 908 W North Avenue in Chicago’s Lincoln Park neighborhood from an unnamed seller.
Hines said the North & Clybourn transaction is HUSPP’s second property acquisition in Chicago following its purchase of the Chicago Prime Portfolio industrial asset late last year.
The Blu South transaction is the firm’s first build-to-rent (BTR) acquisition in the US, Hines added. Financial details of both transactions were undisclosed.
Following the latest deals, HUSPP has deployed nearly $800m over the past year. This investment activity has been spread across various asset classes, including build-to-rent, industrial, grocery-anchored retail, medical offices, and select development projects.
Adriana de Alcantara, HUSPP fund manager at Hines, said the Blu South acquisition increases the fund’s investment options in alternative assets. She added that acquiring North & Clybourn and Chicago Prime Portfolio strengthens the HUSPP’s presence in Chicago and helps diversify the fund’s holdings.
Paul Zarian, managing director at Hines, said: “We’ve been actively investing and developing in North Carolina for many years and have been looking for the right opportunity to re-establish our presence in Charlotte, given the secular tailwinds that make it a compelling market for investment.
“Blu South offers optionality for Charlotte residents seeking exceptional housing that is attainably priced and conveniently located. It is rare to find a build-to-rent community that is adjacent to transit and centrally located among the city’s major employment nodes. That is the type of location where we have conviction in the long-term.”
Alfonso Munk, Hines Americas CIO, said: “We have conviction in the build-to-rent sector, especially with higher-for-longer rates expected to tamp down home buying and a clear trend of people looking for walkable, amenitised living areas.
“There remains significant opportunity to provide residents the benefits of institutionally managed rental homes, without the burden of home buying.”
John Tomlinson, managing director at Hines, said: “North & Clybourn represents a rare opportunity to acquire a generational asset in one of Chicago’s strongest retail submarkets.
“The property is a clear reflection of our strategy to acquire well-located assets supported by strong fundamentals and anchored by long-term commitments from best-in-class tenants. We look forward to leveraging our institutional knowledge and operational expertise to generate additional value over time.”
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