Dealmaker: Hines Global Income Trust Acquires D.C. Office Asset for $216M

Hines Global Income Trust, Houston, acquired 1015 Half Street, a 396,000-square-foot Class A office asset in Washington, D.C.

The Washington Business Journal reported the real estate investment trust paid $215.7 million for the property.

Located at 1015 Half Street SW near the Washington Nationals’ ballpark, the institutionally managed office building is 96 percent leased, predominantly by federal government and District of Columbia government organizations.

Alfonso Munk, President and Chief Investment Officer with Hines Global, said the firm believes in Washington, D.C. as an institutional market, “and the acquisition of 1015 Half Street allows us to bring the combination of market liquidity and future growth to our investors,” he said. “This investment aligns with Hines’ conviction that high-quality office product will outperform the market.”

The Capitol Riverfront submarket population has nearly doubled over the past 11 years and analysts expect growth of nearly 15,000 residential units and 1 million square feet of retail by year-end 2022.

The submarket has the lowest office vacancy rate in the District at 7.9 percent, well below the 14.5 percent metro-wide average, said Chuck Watters, Senior Managing Director at Hines. “This asset provides an opportunity to invest in the path of growth, with this submarket poised to outperform the broader metro area.”

Hines Global Chief Operating Officer Janice Walker noted the firm acquired 1015 Half Street at a discount to replacement cost. “The discounted basis plays well into the current environment and our thesis of investing in resilient assets,” she said.

Geer LeBoutillier and Hasani Hayden arranged the acquisition for Hines Washington, D.C. office. Omar Thowfeek, Kimberly Magness and Aaron Mader represented Hines Global Income Trust.