Hines Affiliate Buys Boston Warehouses for $73M

An affiliate of Houston-based Hines acquired a pair of industrial properties near Boston less than two years after they were completed.

Hines Global Income Trust, the real estate investment trust of Hines, acquired Upton Crossing in Wilmington, Massachusetts, for $73 million, the Boston Business Journal reported. The two warehouses were moved as part of a three-property deal that also included distribution facilities in Savannah and a logistics center in South Carolina, a total deal worth $309 million.

The Davis Companies purchased the site for Upton Crossing in 2021 for $11.7 million and delivered the warehouses in June 2023. They are located just a mile and a half from a significant corridor, Interstate 93.

The total property off Route 125 spans 215,000 square feet, breaking down the purchase price to $340 per square foot. The property is 81 percent leased with a tenant roster that includes Zoll Medical Corporation, which develops medical devices and software solutions.

Hines and Davis both have ties to significant developments in Boston.

Hines is developing South Station Tower, a 51-story office and condo tower on Atlantic Avenue slated for completion this year. Construction work was beset last year with two accidents that paused work on the site.

Davis, meanwhile, is based in Beantown. The developer’s portfolio includes the Omni Boston Hotel at the Seaport — one of the state’s largest hotels — a life sciences building in Watertown and an office complex in Waltham.

In the first quarter of the year, Greater Boston’s industrial market recorded an increase in owner-user sales, according to a report from CBRE, as well as increases in build-to-suit and land site activity. The market’s availability rate ticked up to 9.2 percent from the fourth quarter, while the average asking rent held steady at $15.29 per square foot.

— Holden Walter-Warner