Hines announced today its first residential project in the central Mexican city of Guadalajara. Currently referred to as Acueducto, the development will be located on Acueducto Street in Zapopan, an affluent suburb in the city's northwest sector.
The new residential project, which will soon be re-named and branded, will be funded through the recently formed HCM Holdings LP, a collaboration between Hines and its investment partner, the California Public Employees' Retirement System (CalPERS).
Targeted to the upper-middle segment of the high-rise residential market, the high-rise project will consist of 96 condominium units ranging from 130 m²to 170 m², offering a variety of unique amenities, such as automated access control, a club room, fitness/sports facilities, outdoor terraces and landscaped areas covering more than 60% of the grounds.
Project design has commenced and ground breaking will occur in the last quarter of this year. Completion is expected in mid-2007. The San Francisco-based architectural firm of Kaplan, McLaughlin, Diaz (KMD Architects) has been hired as design architect, and their Mexico City office will lead the project, applying their vision to the design. KMD Architects was also responsible for the design of Mexico City's sophisticated W Hotel.
The site offers an unparalleled location, allowing easy access to major traffic arteries, shopping, banks and restaurants. It is also just two blocks from Los Colomos nature preserve, a 90-hectare (222-acre) forest with scenic biking/hiking trails.
"We have had a strong presence in Guadalajara's commercial real estate market since 1998 and this residential project will allow us to capitalize on our reputation for quality and service," said Hines Vice President Lyman Daniels.
Assistant Project Manager Gilberto Hidalgo added, "Acueducto will stand out as a landmark development and will serve as an icon on Zapopan's skyline."
In January of this year, Hines and CalPERS announced the closing of HCM Holdings LP, a fund created to invest in the Mexican real estate market. It has an eight-year term and a $200 million capacity, including leverage. While the fund will concentrate on residential and retail markets, it retains discretionary rights to invest in other real estate products.
Hines Vice President and fund manager Gary Holtzer said, "This project is consistent with the fund's objectives and will provide a high quality product to the Guadalajara market."
Mexico's second largest city, Guadalajara is located in the central region, 300 miles north of Mexico City and only 250 miles from the popular pacific coast resort town Puerto Vallarta. With benign weather year round, the Pearl of the West, as it is know, offers excellent quality of life, combining cosmopolitan living with old-world charm.
CalPERS is the nation's largest public pension fund with assets totaling $189.8 billion, of which $11 billion is invested in real estate. The System provides retirement and health benefits to more than one million state and public employees and their families. For further information on CalPERS, please visit the System's Web site at www.calpers.ca.gov.
Hines entered the Mexican real estate market in 1975. Since that time, the firm has completed office, residential and industrial properties in Mexico totaling more than three million square feet and has developed more than 700 acres of land. Currently, the company has operations in eight markets throughout the country including Mexico City, Querétaro, Guadalajara, San Luis Potosí, Toluca, Acapulco, Michoacán and Monterrey. Hines' residential experience in Mexico consists of Mexico City's Del Bosque high-rise condominium towers and El Faro, a 40-villa development currently under construction in Querétaro.