Gerald Hines is getting into the co-working game.
The Texas billionaire, whose eponymous real estate investment firm oversees $121 billion in assets, has announced a partnership with flexible-office startups Industrious and Convene, to open co-working locations across the country, according to Bloomberg.
Under the name “Hines Squared,” the two startups will operate two flexible-office spaces slated to open later in the year at 717 Texas in Houston and the Kearns Building in Salt Lake City, Utah. Hines has plans to open more locations in its buildings in New York City, Atlanta, San Francisco, Washington D.C., Boston and Denver.
The move is a sign of confidence from institutional landlords who are increasingly pouring investment dollars into the flexible-office sector. Industrious, which provides office space and amenities to enterprise clients, and enters management agreements with landlords, is backed by a suite of real estate venture firms including Riverwood Capital and Fifth Wall Ventures. It currently has more than 60 locations and has raised $142 million.
Convene, which operates meeting spaces and amenities, has also seen significant investment. Its backers include Brookfield Asset Management, RXR Realty and the Durst Organization. It has raised $280 million.
Meanwhile, Hines has in recent months locked horns with his co-developers Goldman Sachs and Singapore’s Pontiac Land Group at 53 West 53rd Street in Manhattan over pricing of the condominiums there. The MoMa Condominium, which was completed almost four years ago, has undergone almost $170 million in price cuts for its apartments. [Bloomberg] — David Jeans