Developer Hines has paid $20 million for an RV storage yard in Santa Ana it plans to convert into an 82,000-square-foot industrial facility.
The Houston-based firm bought the 3.9-acre storage yard at 3130 Fairview St. from an Anaheim family, according to the Orange County Business Journal. Construction is expected to begin in the last quarter of the year.
The $20-million purchase works out to around $5.1 million an acre.
The Orange County deal marks one of two from a new fund set up by the International real estate investment and development firm.
The Hines U.S. Property Recovery Fund is described as the “first in the firm’s new flagship tactical fund series in the United States with approximately $590 million of equity committed, giving the fund nearly $1.5 billion in immediate investment capacity,” the company said in a statement.
In total, the fund is targeting a final equity raise of $1 billion, with purchasing power of $2.5 billion when considering debt, it said. It’s expected to close in May.
The latest fund targets undervalued properties in 30 large cities across a wide range of sectors across the nation. The fund is already on the move, with commitments so far adding up to$590 million, Bloomberg reported.
Two California logistics sites have been acquired through the fund for $186 million. Besides the site in Santa Ana, the fund bought 25 acres in San Jose, where Hines plans to build a 414,000-square-foot industrial project. The terms were not reported.
The privately owned company led by Chairman Jeff Hines has $83.6 billion in assets under management in 27 countries and a real estate portfolio of 138.3 million square feet.
The company has also completed a large acquisition in Tustin from a different investment fund, according to the OC Business Journal. It paid $50 million for a building used by Avid Bioservices for its growing drug manufacturing operations.
In December, Hines paid $42.5million for a 145,000 square-foot office building in Torrance.
[OCBJ] – Dana Bartholomew
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