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Hines (company)

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Hines Interests Limited Partnership
Company typePrivate
IndustryReal estate
Founded1957; 67 years ago (1957)
FounderGerald D. Hines
Headquarters
Texas Tower
Houston, Texas
Key people
Jeffrey C. Hines (chairman and co-CEO)
Laura Hines-Pierce (co-CEO)
AUM$93.2 billion (April 2, 2024)
Number of employees
~5,000[1]
Websitewww.hines.com
One Franklin Square, owned by the company

Hines Interests Limited Partnership is a privately held company that invests in and develops real estate.[2]

As of 2023, the company has developed, redeveloped or acquired more than 1,600 properties, comprising over 540 million square feet. The company manages 685 properties comprising 216 million square feet, and had a presence in 30 countries.[3] As of 2024, the company holds $93.2 billion worth of assets under management.[4]

History

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Williams Tower, former headquarters of the company

The company “Hines” (first named Gerald D. Hines Interests) was founded in Houston in 1957 by Gerald D. Hines, an American real estate developer with a background in mechanical engineering. The company initially began as a side-business to an engineering partnership after Gerald D. Hines moved to Houston for work in 1948.[5]

Pre-2000

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Between 1957 and 1967, the firm developed approximately 69 new office or warehouse buildings, along with retail and residential projects.[6] The company's first large-scale commercial development came in 1967 when Shell Oil Company hired Hines to construct a new downtown Houston headquarters.[6] The project, One Shell Plaza, would open in 1971.[7] The Galleria, Pennzoil Place, Williams Tower, and more than 900 developments would follow.[7][8][9] The company also developed the Texas Commerce Tower, now JPMorgan Chase Tower, a 75-story skyscraper that is the tallest building in Texas, which opened in 1982.[6] The firm proceeded to branch out into Europe in 1989. It consequently completed projects in Spain, Italy, Germany, and the United Kingdom.[10]

In 1990, Gerald's son Jeffrey became president and the company expanded into global markets.[11] In the 1990s, Hines had developed its own standards for indoor air quality, which influenced rules later established by the United States Environmental Protection Agency.[12]

Early 2000s

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In 2003, Hines established a real estate fund, known as the Hines Real Estate Investment Trust (Hines REIT).[13] A 2005 report by the Lipsey Company,[14] recognized Hines as one of the largest real estate firms in the world, with operations throughout the U.S. and across the globe.[10] Many of the firm's buildings were designed by well-known architects, including I. M. Pei, Cesar Pelli, Frank Gehry, and Robert A.M. Stern.[15] In 2006, the company assisted in the development of LEED standards.[16]

2010s

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The company would work on notable projects through the 2010s, such as the CityCenterDC on the site of the former convention center in Washington D.C. in April 2011,[17][18] and the Walter Reed Army Medical Center as a team led by the company was chosen as the master developer in November 2013.[19]

From 2013 to 2016, Hines led a speculative development called “Timber, Transit & Technology” (T3). At the end of 2016, Hines completed the construction of T3, a 7-story, 224,000 square-foot office building consisting mainly of heavy timber, harvested from managed forests to maximize sustainability. The project was said to be the first modern wooden office building of its size in the United States.[20][21]

In June 2019 Hines partnered with the Abu Dhabi Investment Authority (ADIA) to fund Conscient Infra's construction of an apartment complex: Conscient Hines Elevate, in Gurgaon for INR 400 crore.[22]

In December 2019, The Boston Globe reported that Hines would be developing the South Station Tower in Boston, totaling 678 feet in height through 51 stories.[23]

2020s

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Founder Gerald Hines passed away on August 23, 2020, just days after his 95th birthday.[10][15] Jeffrey Hines took on his father's role of chairman while also retaining his position as chief executive officer.[24] The company continued on, forming a joint venture with the National Pension Service of Korea to focus on build-to-core properties in the U.S. in December 2020.[25] In 2021, Hines opened the first of two towers at the CIBC Square in Toronto. The project is co-developed with Ivanhoé Cambridge and encompasses 3 million square feet.[3]

After 40 years of its headquarters being located in Williams Tower, the company moved its headquarters to the Texas Tower in late 2021. The new building comprises 1 million square feet across 47 floors.[1] In 2022, Jeffrey Hines’ daughter Laura Hines-Pierce became co-CEO of the company alongside her father.[26]

In May 2022, Hines topped out the Salesforce Tower in Chicago, standing at 57 stories.[27]

In July 2024, Pinellas County commissioners approved a deal with the Tampa Bay Rays and Hines, who sought to develop 65 acres of land within the Historic Gas Plant District, and to build Gas Plant Stadium, a new $1.3 billion baseball stadium replacing Tropicana Field as the Rays home arena. The deal includes a $50 million commitment from the Rays and Hines toward at least 5,000 residential units (including affordable and workforce housing), small business assistance, job creation and educational programs, plus $10 million for a new museum for the Dr. Carter G. Woodson African American Museum. The total cost of the projects is estimated at $6.5 billion in public and private investment.[28][29]

In November 2024, the company drew negative publicity for its 'Black Friday Deal,' where rental apartments were listed in Dublin at over €2000, and was seen as indicative of the company's complicity in Ireland's housing crisis, where over 4000 children are currently homeless. [30]

Funds

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In Asia, Hines has one active fund, Hines Asia Property Partners (HAPP, a real estate fund focused on Asia launched in May 2021).[31]

In Europe, Hines has three active funds, the Hines European Core Fund (HECF, an open-end diversified fund launched in 2006), Hines European Property Partners (HEPP, an open-end diversified core-plus fund launched in 2022) and the Hines European Real Estate Partners 3 (HEREP 3, a real estate fund focused in Europe launched in January 2022). The HEREP 3 received commitments from 35 investors in addition to Hines’ own co-investment.[32]

In North America, Hines has two active funds, the Hines U.S. Property Partners (HUSPP, a diversified core-plus fund)[33] and the Hines U.S. Property Recovery Fund (HUSPRF, a real estate fund focusing on renovating struggling or undervalued properties in the United States launched in January 2022).[34]

Hines Global Income Trust is an investment trust founded in 2014 that focuses on investing in commercial properties within North America. The trust’s portfolio is worth $3.9 billion as of January 2024.[35]

Transactions

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List of transactions
Location Description Cost Partner Date Source
Chicago, 321 N. Clark 897,000 square foot office building Acquired, $247.3 million N/A March 2006 [36]
Redmond, Washington portfolio of 9 buildings Acquired, $217 million Subsidiary December 2006 [37]
N/A 70% interest in 12 shopping centers owned by Weingarten Realty Investors N/A N/A November 2008 [38]
San Francisco 542,000 square foot office building Surrendered Sterling July 2009 [39]
Minneapolis Office tower Acquired, $180 million N/A October 2010 [40]
Seattle, Washington 9 buildings, including Safeco Plaza (Seattle) Sold 2% interest to joint venture partner CalPERS, price N/A N/A December 2010 [41]
San Francisco Headquarters of Old Navy Acquired, $180 million Subsidiary August 2012 [42]
Washington D.C. Building Sold to Liberty Property Trust, $133.5 million N/A May 2013 [43]
Pasco county, Florida Behnke Ranch Acquired, price N/A N/A November 2013 [44]
Washington D.C. Property Acquired, $141.9 million N/A December 2013 [45]
North Bethesda, Maryland 345,000 square foot office complex Acquired from JBG Smith, price N/A N/A February 2016 [citation needed]
Midtown Manhattan Site, development of 15-story senior living facility Acquired, price N/A Welltower April 2016 [46]
South Florida Property Sold, $27.59 million Subsidiary August 2016 [47]
West Coast of the United States 7 office properties Sold to an affiliate of The Blackstone Group, $1.162 billion N/A November 2016 [48]
Bellevue, Washington Office property Sold to an affiliate of AEW Capital Management, $193 million N/A November 2016 [citation needed]
Sacramento Wells Fargo Center (Sacramento) Sold to Starwood Capital Group, $175.5 million N/A November 2016 [49]
East Bay (San Francisco Bay Area) Property Acquired, $108.9 million Oaktree Capital Management March 2017 [50]
La Porte, Texas 2.2 million square foot distribution center Acquired from BlackRock, Price N/A N/A March 2017 [51]
Miami Apartment complex Sold, $100 million N/A July 2017 [52]
Athens, Greece 71,000 square meter site to be developed into a residential-for-sale complex Acquired, price N/A Henderson Park Capital August 2020 [53]
Utah Utah Pantages Theatre, to be converted to a 31 story apartment building Acquired, $0, with an agreement to include affordable housing N/A November 2021 [54][55][56][57]

See also

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References

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  1. ^ a b Cowen, Diane (6 March 2023). "New Hines HQ at Texas Tower focuses on modern design and workforce of the future". Houston Chronicle.
  2. ^ Feser, Katherine (2021-02-12). "Renderings provide first look at new district near Texas Medical Center". Houston Chronicle. Retrieved 2021-03-02.
  3. ^ a b McLean, Steve (23 May 2023). "Hines' Bayside Toronto delivers huge mixed-use waterfront development". Real Estate News Exchange.
  4. ^ Daniel, Will (2 April 2024). "'It's a great vintage': $93 billion real-estate investment giant Hines launches a private wealth platform as it sees end of market correction". Fortune.
  5. ^ Goldberger, Paul (27 August 2020). "Gerald D. Hines, Developer and Architects' 'Medici,' Is Dead at 95". New York Times.
  6. ^ a b c Luck, Marissa (10 January 2023). "How Houston's skyline has changed over 65 years, and why one real estate firm is at the center of it". The Houston Chronicle. Retrieved 22 February 2024.
  7. ^ a b "Hines is a towering influence on Houston landmarks [Archive] – SkyscraperPage Forum". forum.skyscraperpage.com. Retrieved April 11, 2019.
  8. ^ "Gerald D. Hines". BisNow. Retrieved July 21, 2016.
  9. ^ Solomont, E.B. (August 26, 2016). "How Gerald Hines built an $89B real estate empire". The Real Deal.
  10. ^ a b c Sarnoff, Nancy (August 24, 2020). "Gerald D. Hines, developer who shaped Houston's skyline, dies at 95". Houston Chronicle. Retrieved August 24, 2020.
  11. ^ Perez, Christine (1 November 2007). "Jeff Hines: Filling His Father's Shoes". Wealth Management. Retrieved 22 February 2024.
  12. ^ Cowen, Diane (14 February 2022). "Laura Hines-Pierce, granddaughter of Hines founder, joins her father as firm's co-CEO". Houston Chronicle. Retrieved 22 February 2024.
  13. ^ Pulsinelli, Olivia (June 30, 2016). "Houston-based REIT to dissolve, sell assets". American City Business Journals.
  14. ^ "2005 Top 25 Commercial Real Estate Brands" (PDF). The Lipsey Company. Archived from the original (PDF) on May 7, 2007. Retrieved June 24, 2009.
  15. ^ a b Delony, Doug (August 24, 2020). "Real estate legend Gerald D. Hines, known for Galleria, Waterwall and Houston's skyline, has died at 95". KHOU. Retrieved August 24, 2020.
  16. ^ Logan, Katharine (11 February 2021). "Gerald D. Hines: A legacy of better building | U.S. Green Building Council". www.usgbc.org. Retrieved 22 February 2024.
  17. ^ O'Connell, Jonathan (March 7, 2004). "New $950 million CityCenter DC complex on site of former convention center set for construction in April". The Washington Post.
  18. ^ Krouse, Sarah; Neibauer, Michael (October 21, 2010). "Hines plans April groundbreaking on CityCenter". American City Business Journals.
  19. ^ O'Connell, Jonathan (November 5, 2013). "Team led by Hines Interests named master developer of 67-acre Walter Reed campus". The Washington Post.
  20. ^ "T3: Timber, Transit & Technology - University of St. Thomas". University of Maryland. Fall 2018.
  21. ^ Long, Hank (30 November 2016). "A walk in the woods of T3 timber building". Finance & Commerce.
  22. ^ "Conscient Hines Elevate". June 22, 2019.
  23. ^ Logan, Tim (27 December 2019). "A skyscraper is headed for South Station in downtown Boston. Work starts next month". The Boston Globe.
  24. ^ Brasse, Jonathan (1 March 2021). "Jeff Hines: 'When there's an organizational goal, it needs to happen'". PERE News.
  25. ^ "National Pension Service of Korea and Hines Form New Build-to-Core Venture in RE". www.swfinstitute.org. 2020-12-10. Retrieved 2020-12-10.
  26. ^ Sperling, Maddy (10 February 2022). "Succession: Laura Hines-Pierce joins her father as Hines co-CEO". The Real Deal. Retrieved 22 February 2024.
  27. ^ Rodriguez, Abel (28 May 2022). "Chicago Salesforce Tower Nears Completion, Will House 1,000+ People". Built In Chicago.
  28. ^ Wright, Colleen (18 July 2024). "'We are St. Pete!': Rays stadium, redevelopment approved by city council". Tampa Bay Times.
  29. ^ Evans, Jack (30 July 2024). "Pinellas Commission approves Rays stadium deal". Tampa Bay Times.
  30. ^ "Landlords linked to US funds pitching €2,000-plus 'Black Friday' deals for Dublin apartments". www.businesspost.ie. Retrieved 2024-11-21.
  31. ^ Wong, Natalie (4 May 2021). "Ontario Teachers' Backs Hines For $400 Million in Hunt For Asia Real Estate Deals". Bloomberg.
  32. ^ D'Souza, Charlotte (29 November 2023). "Hines closes third European value-add fund above target". PERE News.
  33. ^ Bunby, Paul (23 October 2023). "Hines Fund Scores Industrial Assets in NorCal, SoCal". Connect CRE.
  34. ^ Wong, Natalie (10 January 2022). "Hines Launches $1 Billion Fund for Undervalued U.S. Properties". Bloomberg.
  35. ^ Sams, Brandon (8 January 2024). "Laura Hines-Pierce temporarily quits board of Hines investment trust". The Real Deal.
  36. ^ "Hines Pays $247.3Mln for 321 N. Clark in Chicago". Commercial Real Estate Direct. April 25, 2006.
  37. ^ Mordock, Jeff (November 30, 2006). "Hines to Pay $217Mln for 716,000 SF of Space in Suburban Seattle". Commercial Real Estate Direct.
  38. ^ "WEINGARTEN, HINES REIT FORM $271 MILLION JOINT VENTURE". RE Business Online. November 18, 2008.
  39. ^ "Hines, Sterling to surrender S.F. building". American City Business Journals. July 24, 2009.
  40. ^ Black, Sam (October 7, 2010). "Hines Global REIT to buy 50 South Sixth office tower in Minneapolis for $180M". American City Business Journals.
  41. ^ Jones, Jeanne Lang (December 24, 2010). "Hines sells national building portfolio to CalPERS". American City Business Journals.
  42. ^ Kelliher, Fiona (January 28, 2019). "Exclusive: Gap in talks to buy Old Navy HQ in Mission Bay". American City Business Journals.
  43. ^ Sernovitz, Daniel J. (May 22, 2013). "Liberty Property Trust pays $133.5 M for 2100 M St. NW". American City Business Journals.
  44. ^ "Hines Acquires Strategic 536-Acre Land Parcel in Tampa, FL, for…". Hines. Retrieved 2023-12-04.
  45. ^ "Hines Global REIT Acquires 55 M Street in Washington, D.C." (Press release). Hines. December 10, 2013.
  46. ^ Malesevic, Dusica Sue (April 19, 2016). "Hines, Welltower plan 15-story senior living facility in Midtown". The Real Deal.
  47. ^ Bandell, Brian (August 15, 2016). "REIT sells BJ's Wholesale-anchored center for $28M". American City Business Journals.
  48. ^ "Hines REIT Completes $1.162 Billion Sale of Office Assets" (Press release). Hines. November 11, 2016.
  49. ^ van der Meer, Ben (November 14, 2016). "EXCLUSIVE: Wells Fargo Center sold for $175.5 million". American City Business Journals.
  50. ^ Li, Roland (March 28, 2017). "Hines and Oaktree buy massive East Bay office complex". American City Business Journals.
  51. ^ Pulsinelli, Olivia (March 31, 2017). "Hines buys, rebrands, expands industrial park near Port of Houston". American City Business Journals.
  52. ^ "Berkshire Group acquires rental apartment building near Coral Gables". American City Business Journals. June 27, 2017.
  53. ^ "Henderson Park and Hines acquire prime residential development site in Athens". www.propertyfundsworld.com. 2020-08-18. Retrieved 2020-08-20.
  54. ^ Anderson, Taylor (2023-03-09). "After Demolishing the Utah Theater, Hines Will Miss First Deadline". Building Salt Lake. Retrieved 2023-09-24.
  55. ^ Williams, Carter; March 25, KSL com | Posted-; P.m, 2023 at 4:04. "When will construction begin on Main Street Tower in Salt Lake City?". www.ksl.com. Retrieved 2023-09-24.{{cite web}}: CS1 maint: numeric names: authors list (link)
  56. ^ "Demolition of Utah Theater set to start Tuesday as judge rejects a final-hour effort to save it". The Salt Lake Tribune. Retrieved 2023-09-24.
  57. ^ McKitrick, Cathy (2023-06-24). "The Aftermath of Hasty Destruction of Pantages Theater on Downtown Salt Lake Main Street". Utah Stories. Retrieved 2023-09-24.
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