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Hines Global REIT II Buys 820,000 SF Industrial Warehouse in Arizona

Hines Global REIT II Inc., a publicly registered non-traded real estate investment trust, completed its purchase of Goodyear Crossing II, a Class A industrial warehouse located in the Goodyear submarket of Phoenix, Arizona. The property was purchased from Gramercy Property Trust for $56.2 million, according to a filing with the Securities and Exchange Commission. The DI Wire reported on the signing of the purchase and sale agreement last month.

Goodyear Crossing II totals 820,000 square feet and is fully leased to online retailer Amazon.com, which utilizes it as a distribution facility. The retail giant has occupied the property since its completion in 2008 and is under a lease that expires in September 2019. Included in the sale is an adjacent parcel, totaling approximately 11.8 acres that would allow an expansion of approximately 285,000 square feet, should the tenant wish to grow its operations there. The estimated going-in capitalization rate for Goodyear Crossing II is approximately 8.5 percent.

“We were attracted to this opportunity to expand our exposure to the U.S. bulk distribution and logistics market by acquiring this recent-vintage, institutional-quality industrial project with an investment-grade tenant that has heavily invested in the space,” said Sherri Schugart, president and CEO of Hines Global REIT II. “Its location in the Southwest Valley is in the largest warehouse/distribution submarket in Phoenix that has become the center hub for the area’s growing e-commerce presence.”

The acquisition of Goodyear Crossing II is Hines Global REIT II’s fifth investment, and its first within the Southwest region.

Hines Global REIT II commenced operations in August 2014 and invests in commercial real estate investments located in the United States and internationally. The company has raised approximately $190.3 million in investor equity since inception. Hines, the REIT’s sponsor, is a privately owned global real estate investment firm with $89.1 billion of assets under management.

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