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Hines Global Acquires IBM Campus in North Carolina

Hines Global Acquires IBM Campus in North Carolina. Alternative Investments, Hines, REIT, Real Estate Investment Trust, Financials, Investment

Hines Global Income Trust Inc. announced the acquisition of the IBM 500 Campus, a 774,000 square-foot property located at 4205 South Miami Boulevard in Durham, North Carolina. According to local county record, the non-traded REIT paid IBM approximately $66 million for the four-building office campus.

Hines says the acquisition expands the REIT’s presence in the region and further diversifies its $3.9 billion portfolio, which is 63% weighted toward the industrial and living sectors. The four-building asset is 100% leased by IBM and situated on 146 acres in one of the top life science metros in America. It is adjacent to the Research Triangle Park, the largest research park in the United States, which is home to 375 research, technology, and ag-bio companies that employ more than 60,000 workers, four miles from Raleigh Durham International Airport, and has convenient interstate access.

“This strategic acquisition in one of our high priority markets expands our portfolio through a sale-leaseback in the highly sought-after Research Triangle area,” said Alfonso Munk, Hines’ CIO of the Americas and president of Hines Global Income Trust. “As this market continues to experience significant investment, we believe the asset will be well-positioned for continued growth and opportunity.”

“We are grateful for the opportunity to serve IBM and expand our firms’ longstanding relationship to North Carolina,” said Paul Zarian, managing director at Hines. “Long-term, we are attracted to the site’s future redevelopment optionality, specifically given its strategic location in the heart of a high demand submarket for life science, residential, and industrial uses.”

Beyond the IBM 500 Campus, Hines’ presence in the Raleigh-Durham market includes Fenton, the 92-acre mixed-use district in Cary and the Market District at American Tobacco, a 782,000-square-foot mixed-use development in downtown Durham. In addition, the Hines REIT owns Waverly Place, a Whole Foods-anchored retail center in Cary.

As of Sept. 30, 2023, Hines Global Income Trust owned direct real estate investments in 40 properties totaling 17.3 million square feet that were 95% leased. The company launched its third public offering of up to $2.5 billion in shares of its common stock on June 2, 2021, through which it is offering up to $2.5 billion in shares of common stock including $500.0 million of shares offered under its distribution reinvestment plan. As of the close of the third quarter, the company had received gross offering proceeds of approximately $3.2 billion from the sale of shares through its three public offerings, including shares issued pursuant to its distribution reinvestment plan.

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