Hines Global Income Trust Inc., a publicly registered non-traded real estate investment trust, has purchased Gables Station, a 14-story, 1.2-million-square-foot mixed-use multifamily property located in Miami, Florida, for $429.4 million, excluding transaction and closing costs. Hines reported that the transaction is “the second largest single-asset multifamily sale in South Florida.”
Gables Station is located in the Coral Gables neighborhood and has 495 residences, comprised of studios, one-, two- and three-bedroom, and penthouses, which are 95 percent leased. The property was developed by 54 Madison Partners and Nolan Reynolds International.
The property also includes an 80,000-square-foot athletic resort and a 25,000-square-foot co-working space, as well as a full-service spa, three pools, a cafe, and a kid’s academy. Life Time (NYSE: LTH), which operates professional fitness, family recreation and spa centers, will continue to manage the property’s athletic club, co-working and amenity spaces, while Willowick Residential, Hines’ multifamily property management firm, will assume the role as property manager.
Residents also have access to Trader Joe’s and Erba, an Italian-restaurant by Alpareno Group’s Niven Patel, a four-time nominee for a James Beard Award, as well as a Graziano’s specialty foods market, located within the development. In addition, the complex is next to the Shops at Merrick Place, a 750,000-square-foot open-air retail center anchored by Neiman Marcus and Nordstrom.
Gables Station is less than a 10-minute walk to the Douglas and University of Miami Metrorail Stations, which provides access to MiamiCentral, the hub for all train systems in South Florida.
“In the midst of historic economic growth in South Florida, the Gables Station investment represents a unique opportunity to capitalize on our strategy to grow our multifamily portfolio by acquiring a world-class, generational asset in a highly desirable location with high barriers to entry for new development,” said Alfonso Munk, Hines’ chief investment officer of the Americas and president of the REIT. “As South Florida continues to attract more corporations and the demand for luxury mixed-use, transit-oriented developments continues to increase, we are confident that this asset will contribute to the HGIT portfolio’s success.”
Including Gables Station, Hines Global has $3.8 billion portfolio of commercial real estate investments that is nearly two-thirds weighted toward the living and industrial sectors.
Hines, which owns or manages more than 10.3 million square feet in the southeast, said that it has committed approximately $1.8 billion across three developments and acquisitions in South Florida “since the pandemic.” Projects in development include FAT Village (food, art, technology), a 5.6-acre, 835,000-square-foot, office, retail and residential mixed-use property in Fort Lauderdale’s Flagler Village neighborhood; and South Flagler House, a Robert A.M. Stern-designed condominium project with two 28-story towers in West Palm Beach.
From inception in August 2014 through August 17, 2022, Hines Global Income Trust raised approximately $2.5 billion in investor equity in its three public offerings and distribution reinvestment plan. The REIT launched its second follow-on offering at the beginning of June 2021 and has raised $1.1 billion.