Hines Global Income Trust Buys Washington D.C. Office Building
Hines Global Income Trust Inc., a publicly registered non-traded real estate investment trust, has purchased, has purchased 1015 Half Street, a 396,000-square-foot office property in Washington, D.C.
Hines Global Income Trust Inc., a publicly registered non-traded real estate investment trust, has purchased 1015 Half Street, a 396,000-square-foot Class A office property in Washington, D.C., for $215.7 million, excluding closing and transaction costs.
1015 Half Street is a LEED Gold building that is 96 percent leased to nine tenants, predominantly U.S. and District of Columbia government organizations.
The property is located in the Capitol Riverfront submarket, an area with the lowest vacancy rate in the District at 7.9 percent, below the metro-wide average of 14.5 percent, according to Chuck Watters, senior managing director at Hines.
Hines said that over the past 11 years, the Capitol Riverfront population has nearly doubled and continues to attract a younger demographic. The area has seen increased development, with expected growth of approximately 15,000 residential units and 1 million square feet of retail by 2022.
“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,” said Janice Walker, chief operating officer of Hines Global. “The discounted basis plays well into the current environment and our thesis of investing in resilient assets.”
Hines Global’s $2 billion portfolio is currently weighted toward the industrial and multifamily sectors, which together make up about three-quarters of its overall value.
1015 Half Street represents the REIT’s second office asset and its first office acquisition since July 2016. Including this deal, the portfolio’s sector allocations are 49 percent industrial, 23 percent multifamily, 16 percent office and 12 percent retail.
As of the first quarter of 2021, Hines Global Income Trust owned 23 real estate investments totaling 11.1 million square feet of space. From inception in August 2014 through May 13, 2021, the REIT raised $1.3 billion in investor equity in its public offerings. The company has raised $874.3 million in its current offering, as of mid-May 2021.
The REIT registered a $2 billion follow-on offering in early December 2020, and once effective, it will be the third public offering. The anticipated timing is in the second quarter of 2021.
