Hines Global Income Trust Acquires 1015 Half Street

(WASH­ING­TON) – Hines, the inter­na­tion­al real estate firm, announced today that Hines Glob­al Income Trust, Inc. (“Hines Glob­al”) has acquired 1015 Half Street, a 396,000-square-foot tro­phy office asset in Wash­ing­ton, D.C.

1015 Half Street is a LEED Gold, Class‑A, insti­tu­tion­al­ly man­aged office build­ing that is 96% leased, pre­dom­i­nant­ly by US and Dis­trict of Colum­bia gov­ern­ment orga­ni­za­tions. One block from the metro and near the Nation­als’ ball­park, it is locat­ed in the Capi­tol River­front sub­mar­ket, one of the most excit­ing neigh­bor­hoods in this glob­al gate­way city and a true live-work-play envi­ron­ment. The area has strong con­nec­tiv­i­ty to the Capi­tol and fed­er­al gov­ern­ment dis­tricts, Rea­gan Nation­al Air­port and Amazon’s sec­ond head­quar­ters.

​“We are strong believ­ers in the allure of Wash­ing­ton, D.C. as an insti­tu­tion­al mar­ket, and the acqui­si­tion of 1015 Half Street allows us to bring the com­bi­na­tion of mar­ket liq­uid­i­ty and future growth to our investors. This invest­ment aligns with Hines’ con­vic­tion that high-qual­i­ty office prod­uct will out­per­form the mar­ket and pro­vide ten­ants with a dynam­ic work­ing envi­ron­ment,” remarked Alfon­so Munk, pres­i­dent and chief invest­ment offi­cer – Amer­i­c­as of Hines Glob­al.

Over the past 11 years, the Capi­tol River­front pop­u­la­tion has near­ly dou­bled, and it con­tin­ues to attract a younger demo­graph­ic. The area has seen a spur of devel­op­ment, with expect­ed growth of approx­i­mate­ly 15,000 res­i­den­tial units and 1 mil­lion square feet of retail by 2022. With this growth, both pri­vate and pub­lic sec­tor office ten­ants are being drawn to the neighborhood’s mixed‐​use feel with over 80 restau­rants and 50 retail­ers in the vicin­i­ty.

​“The Capi­tol River­front sub­mar­ket has the low­est vacan­cy rate in the Dis­trict at 7.9%, well below the metro-wide aver­age of 14.5%,” said Chuck Wat­ters, senior man­ag­ing direc­tor at Hines. ​“This asset pro­vides an oppor­tu­ni­ty to invest in the path of growth, with this sub­mar­ket poised to out­per­form the broad­er metro area.”

Beyond the attrac­tive­ness of the loca­tion, the tro­phy-qual­i­ty invest­ment is being acquired at a com­pelling basis. Not­ed Jan­ice Walk­er, chief oper­at­ing offi­cer of Hines Glob­al, ​“With recent esca­la­tions in con­struc­tion cost, 1015 Half Street is being acquired at a dis­count to replace­ment cost and the recent 2019 high-water­mark trade in the sub­mar­ket. The dis­count­ed basis plays well into the cur­rent envi­ron­ment and our the­sis of invest­ing in resilient assets.”

As demon­strat­ed by this deal, Hines Glob­al con­tin­ues to pur­sue a strat­e­gy of diver­si­fi­ca­tion by geog­ra­phy and sec­tor, pro­vid­ing investors with expo­sure to assets in high-qual­i­ty mar­kets world­wide. Hines Global’s $2 bil­lion port­fo­lio is cur­rent­ly weight­ed toward the indus­tri­al and liv­ing sec­tors, which togeth­er make up about three-quar­ters of its over­all val­ue. 1015 Half Street rep­re­sents its sec­ond office asset and is its first office acqui­si­tion since July 2016. Inclu­sive of this deal, the portfolio’s sec­tor allo­ca­tions are 49% indus­tri­al, 23% liv­ing, 16% office and 12% retail.

The acqui­si­tion of 1015 Half Street was led by Geer LeBoutil­li­er and Hasani Hay­den on behalf of Hines, Wash­ing­ton, D.C. Hines Glob­al was rep­re­sent­ed by Omar Thowfeek, Kim­ber­ly Mag­ness and Aaron Mader.

About Hines Glob­al
Hines Glob­al is a pub­lic, non-list­ed real estate invest­ment trust spon­sored by Hines. It com­menced oper­a­tions in 2014 and invests in com­mer­cial real estate invest­ments locat­ed in the Unit­ed States and inter­na­tion­al­ly. For addi­tion­al infor­ma­tion about Hines Glob­al, vis­it www​.www​.hines​glob​al​in​cometrust​.com.

About Hines
Hines is a pri­vate­ly owned glob­al real estate invest­ment firm found­ed in 1957 with a pres­ence in 240 cities in 27 coun­tries. Hines over­sees a port­fo­lio of assets under man­age­ment val­ued at approx­i­mate­ly $160.9 billion,¹ includ­ing $81.7 bil­lion in assets under man­age­ment for which Hines serves as invest­ment man­ag­er, and $79.2 bil­lion rep­re­sent­ing more than 172.9 mil­lion square feet of assets for which Hines pro­vides third-par­ty prop­er­ty-lev­el ser­vices. His­tor­i­cal­ly, Hines has devel­oped, rede­vel­oped or acquired approx­i­mate­ly 1,450 prop­er­ties, total­ing over 485 mil­lion square feet. The firm has more than 180 devel­op­ments cur­rent­ly under­way around the world. With exten­sive expe­ri­ence in invest­ments across the risk spec­trum and all prop­er­ty types, and a pio­neer­ing com­mit­ment to ESG, Hines is one of the largest and most-respect­ed real estate orga­ni­za­tions in the world. Vis­it www​.hines​.com for more infor­ma­tion.

¹In­cludes both the glob­al Hines orga­ni­za­tion as well as RIA AUM as of Decem­ber 31, 2020.

For­ward-Look­ing State­ments
State­ments in this press release, includ­ing inten­tions, beliefs, expec­ta­tions or pro­jec­tions relat­ing to the acqui­si­tion described here­in, are for­ward-look­ing state­ments with­in the mean­ing of Sec­tion 27A of the Secu­ri­ties Act of 1933, as amend­ed, and Sec­tion 21E of the Secu­ri­ties Exchange Act of 1934, as amend­ed. Such state­ments are based on cur­rent expec­ta­tions and assump­tions with respect to, among oth­er things, the val­ue to be gen­er­at­ed by the office build­ing, the poten­tial pos­i­tive impact on Hines Global’s investors that may be real­ized as a result of the mar­ket liq­uid­i­ty and future growth of the Capi­tol River­front sub­mar­ket, future eco­nom­ic, com­pet­i­tive and mar­ket con­di­tions and future busi­ness deci­sions that may prove to be incor­rect or inac­cu­rate. Impor­tant fac­tors that could cause actu­al results to dif­fer mate­ri­al­ly from those in the for­ward-look­ing state­ments include the risks asso­ci­at­ed with Hines being able to suc­cess­ful­ly man­age the office build­ing, the ten­ants remain­ing com­mit­ted to its lease oblig­a­tions and con­tin­u­ing to pay rent in a time­ly man­ner, Hines Glob­al being able to locate and close on addi­tion­al oppor­tu­ni­ties to invest in logis­tics assets, and oth­er risks described in the ​“Risk Fac­tors” sec­tion of Hines Glob­al’s Annu­al Report on Form 10‑K for the year end­ed Decem­ber 31, 2020, as updat­ed by its oth­er fil­ings with the Secu­ri­ties and Exchange Com­mis­sion. You are cau­tioned not to place undue reliance on any for­ward-look­ing statements.