Hines Sells San Antonio Industrial Park

Corner Ridge Crossing. Image courtesy of JLL

KKR continues building its U.S. industrial portfolio with the acquisition of a four-building, 576,047-square-foot Class A industrial park in San Antonio, Texas, from Hines. KKR purchased Corner Ridge Crossing through its Americas opportunistic equity real estate fund.

The sale price of the last-mile industrial park located inside the master-planned Cornerstone Industrial Park was not disclosed.

JLL Capital Markets marketed the property on behalf of Hines. The JLL Industrial Capital Markets team representing Hines was led by Senior Managing Directors Trent Agnew and Dustin Volz, Director Dom Espinosa and Associates Josh Villarreal and Zach Riebe.

Hines’ first industrial park in metro San Antonio

Corner Ridge Crossing was Hines’ first industrial park in the San Antonio-New Braunfels, Texas, MSA. After buying the 45-acre site in Northeast San Antonio, Hines broke ground in the summer of 2019 on the park. Completed in 2020, Corner Ridge Crossing is well leased to a strong mix of national and regional tenants, including publicly listed multinational e-commerce and food and beverage companies.

The property includes four buildings: one cross-dock, one front-load and two rear-load buildings. Each building has clear heights of 28 to 32 feet, 28- to 60-foot dock high doors and truck courts ranging from 130 to 210 feet.

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The strategic infill location has immediate access to Interstate 10, Interstate 35 and Loop 410, which provide access to four major markets in less than four hours, including downtown San Antonio, Houston, Dallas-Fort Worth and Austin, Texas.

KKR expands industrial portfolio

The acquisition in San Antonio comes weeks after global investment firm KKR announced it was starting to develop its own ground-up industrial assets in addition to buying properties across the U.S. Over the past four years, KKR has acquired more than 45 million square feet of industrial real estate in the U.S.

Under its wholly owned U.S. industrial real estate platform, Alpha Industrial Properties, KKR has four projects already in development and four more in pre-development for a total of 1.8 million square feet at sites in Atlanta, Dallas, Denver and Orlando, Fla. KKR used a $200 million construction facility from Square Mile Capital and BMO Harris Bank to finance the first four developments, four planned locations and support additional capacity. Funding is also coming from KKR Real Estate Partners III, the Americas opportunistic equity real estate fund.

Several months before announcing the ground-up development program, KKR acquired Alliance Northport, a three-building industrial park totaling 911,654 square feet in Northlake, Texas, from Hillwood, according to Denton County records. Covering 62 acres, Alliance Northport is located in Alliance, Texas, a mixed-use, master-planned community in Dallas-Fort Worth’s North Fort Worth submarket.

In January, a KKR fund acquired industrial properties in the Chicago and Charleston, S.C., markets totaling more than 1.9 million square feet for $264 million in separate deals.

KKR has previously done business with Hines on industrial properties in Texas. In December 2020, KKR purchased two assets in Houston and Dallas totaling 1.8 million square feet in a transaction valued at $171 million. When KKR established a dedicated real estate platform in 2011, one of its first deals came in 2012 when the two companies formed a joint venture with Pinto Realty Partners to develop the 971-acre Pinto Business Park in Houston.