Hines Global Income Trust Acquires Multifamily Asset in San Jose

January 22, 2024

Strategic Location and Trophy Profile Position Asset as Attractive Investment

(SAN JOSE, CA) – Hines, the glob­al real estate invest­ment, devel­op­ment, and prop­er­ty man­ag­er, announced that Hines Glob­al Income Trust, Inc. (“HGIT”) has acquired Hanover Diri­don, a Class‑A mul­ti­fam­i­ly asset locat­ed in San Jose, Cal­i­for­nia. With a diver­si­fied port­fo­lio of glob­al assets, this acqui­si­tion strength­ens HGIT’s robust liv­ing sec­tor allo­ca­tion and expands its pres­ence in Cal­i­for­nia. Wil­low­ick Res­i­den­tial, Hines’ mul­ti­fam­i­ly prop­er­ty man­age­ment firm, which man­ages three oth­er assets in the Bay Area, will assume the role of prop­er­ty manager.

Diri­don West’s strate­gic loca­tion, tro­phy pro­file, and prox­im­i­ty to pre­mier Sil­i­con Val­ley employ­ers and live-work-play ameni­ties make it an attrac­tive invest­ment,” said Alfon­so Munk, Hines’ CIO of the Amer­i­c­as and pres­i­dent of HGIT. While devel­op­ment costs remain ele­vat­ed in the Bay Area result­ing in a slow­down of new mul­ti­fam­i­ly prod­uct, fun­da­men­tals con­tin­ue to improve, there­fore ide­al­ly posi­tion­ing this asset to cap­i­tal­ize on the strength of the mar­ket.”

Locat­ed at 715 W Julian Street, Hanover Diri­don, which will be rebrand­ed as Diri­don West, is a 7‑story, 249-unit Class A mul­ti­fam­i­ly devel­op­ment com­plet­ed in 2021 and is cur­rent­ly 95% leased. The prop­er­ty includes stu­dios, one-bed­room, and two-bed­room units with lux­u­ry fin­ish­es and resort-style ameni­ties includ­ing a pool with cabanas, rooftop sky deck with cityscape views, a club-qual­i­ty fit­ness cen­ter, a dog spa, indoor/​outdoor club­house, and below-grade park­ing. Addi­tion­al­ly, the asset is locat­ed in a mixed-use micro mar­ket that is with­in walk­ing dis­tance to Whole Foods, the Cal­Train Diri­don Tran­sit Sta­tion, and more.

Diri­don West dif­fer­en­ti­ates itself due to its tran­sit-adja­cent loca­tion, and thought­ful unit fin­ish­es and lay­outs,” said Shawn Hardy, Man­ag­ing Direc­tor at Hines. We have high con­fi­dence in this micro mar­ket of San Jose which offers our res­i­dents imme­di­ate access to qual­i­ty retail offerings.”

Includ­ing Diri­don West, HGIT has a $4.1 bil­lion port­fo­lio of com­mer­cial real estate invest­ments that is more than 63% weight­ed toward the liv­ing and indus­tri­al sec­tors. HGIT is diver­si­fied by geog­ra­phy and real estate sec­tors, with a focus on sta­ble assets with strong long-term income poten­tial.

Diri­don West marks Hines’ con­tin­ued growth in the Bay Area, which totals over 9.7 mil­lion square feet that the firm owns or man­ages, with more than 1,000 mul­ti­fam­i­ly units managed.

About Hines Glob­al Income Trust
HGIT 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 HGIT, vis­it www​.www​.hines​glob​al​in​cometrust​.com.

About Hines
Hines is a glob­al real estate invest­ment, devel­op­ment and prop­er­ty man­ag­er. The firm was found­ed by Ger­ald D. Hines in 1957 and now oper­ates in 30 coun­tries. We man­age a $94.6B¹ port­fo­lio of high-per­form­ing assets across res­i­den­tial, logis­tics, retail, office, and mixed-use strate­gies. Our local teams serve 790 prop­er­ties total­ing over 269 mil­lion square feet glob­al­ly. We are com­mit­ted to a net zero car­bon tar­get by 2040 with­out buy­ing off­sets. To learn more about Hines, vis­it www​.hines​.com and fol­low @Hines on social media. 

¹In­cludes both the glob­al Hines orga­ni­za­tion and RIA AUM as of June 302023.

Any ESG or impact com­mit­ments made by Hines are not being pro­mot­ed and do not bind any invest­ment deci­sions made in respect of, or the stew­ard­ship of, HGIT. Any mea­sures imple­ment­ed in respect of such ESG or impact com­mit­ments may not be imme­di­ate­ly applic­a­ble to HGIT’s invest­ments and any imple­men­ta­tion can be over­rid­den or ignored at HGIT’s sole discretion.

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 poten­tial long-term per­for­mance of this prop­er­ty and over­all growth of the San Jose area, 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 prop­er­ty, risks asso­ci­at­ed with an eco­nom­ic down­turn in the region or the mul­ti­fam­i­ly sec­tor, and oth­er risks described in the Risk Fac­tors” sec­tion of HGIT’s Annu­al Report on Form 10‑K for the year end­ed Decem­ber 31, 2022, 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.

Press Contact
Erica Campbell

212 294 9024