From left: 750 Seventh Avenue and 1251 Sixth Avenue
The New York State Retirement Fund entered a $1 billion joint venture with Houston-based Hines, to develop, own and manage corporate and medical office properties with single-tenant users in the U.S.
The venture, called Hines Corporate Properties II, will follow a similar plan to the previous venture that operated between the two entities from 1997-2004. Under that venture, the two companies developed a portfolio of 3 million square feet, developing six built-to-suit offices and buying three single-tenanted building.
“This is a joint strategy decision between Hines and New York Common, and we together believe that there will be compelling opportunities to build built-to-suits given the market dynamics,” said Doug Donovan, vice president at Hines, told The Real Deal, in an emailed statement.
No specific deals have been announced, but Hines has made a number of moves involving New York real estate recently, including the sale of 750 Seventh Avenue for $485 million, or more than $800 a square foot.
In March, Hines was hired by Mitsui Fudosan America to manage 1251 Sixth Avenue, a 53-story office tower near Rockefeller Center.
The $146.5 billion fund, the third largest public pension in the country, represents more than 1 million active and retired state and local employees, police officers and firefighters. Hines is one of the world’s biggest real estate firms in the world, with $23.6 billion in assets owned or under management, and has 106 offices in 17 countries.