Key Takeaways
- • Hines Securities completed a $77 million Delaware Statutory Trust (DST) offering through HREX Multifamily I DST, providing qualified investors with 1031 exchange opportunities to defer capital gains taxes.
- • The underlying asset is EMME, a 14-story, 199-unit Class A multifamily development in Chicago's West Loop submarket, 96% leased as of September 30, 2023, featuring resort-style amenities.
- • Hines Global Income Trust acquired EMME in June 2023 for a net purchase price of $74.5 million and subsequently sourced the asset for the DST offering, demonstrating the firm's integration of acquisition sourcing with 1031 exchange solutions.
- • The offering attracted overwhelming investor demand, addressing growing interest from financial professionals and their clients seeking diversified real estate holdings through institutional-quality assets with tax efficiency.
- • Hines Global Income Trust maintains a $4.1 billion portfolio as of January 31, 2024, diversified by geography and property type, positioning the DST offering within a larger institutional framework.
Summary
Hines Securities successfully completed a $77 million DST offering on March 6, 2024, through HREX Multifamily I DST, expanding its 1031 exchange product suite for qualified investors. The offering enabled investors to complete like-kind property exchanges under Internal Revenue Code Section 1031, providing a structured mechanism for deferring capital gains and other taxes while diversifying real estate holdings.
The underlying asset, EMME, represents a high-quality multifamily acquisition in a strong submarket. The property is a 14-story, 199-unit Class A development located in Chicago's West Loop, an area known for diverse offerings and dynamic market conditions. As of September 30, 2023, the asset achieved 96% occupancy, indicating strong operational performance. Hines Global Income Trust originally acquired EMME in June 2023 for a net purchase price of $74.5 million, subsequently packaging the asset into the DST structure for eligible 1031 exchange investors.
HREX Multifamily I DST functions as a subsidiary of Hines Global Income Trust, which maintains a $4.1 billion portfolio as of January 31, 2024. This portfolio diversification strategy spans multiple geographies and property types, with focus on dynamic sectors and markets. According to Alfonso Munk, Chief Investment Officer – Americas for Hines, the DST offering received an "overwhelming response" from financial professionals and their clients, reflecting increased demand for companion 1031 exchange offerings to the firm's flagship income trust platform. Munk noted that nearly a decade since the launch of Hines Global Income Trust, structured 1031 solutions have grown into a meaningful product category addressing both tax deferment objectives and portfolio diversification needs within the institutional investor base.
The EMME offering demonstrates Hines Securities' strategic positioning of DST vehicles as comprehensive wealth preservation and estate planning solutions during a dynamic real estate market environment.
The underlying asset, EMME, represents a high-quality multifamily acquisition in a strong submarket. The property is a 14-story, 199-unit Class A development located in Chicago's West Loop, an area known for diverse offerings and dynamic market conditions. As of September 30, 2023, the asset achieved 96% occupancy, indicating strong operational performance. Hines Global Income Trust originally acquired EMME in June 2023 for a net purchase price of $74.5 million, subsequently packaging the asset into the DST structure for eligible 1031 exchange investors.
HREX Multifamily I DST functions as a subsidiary of Hines Global Income Trust, which maintains a $4.1 billion portfolio as of January 31, 2024. This portfolio diversification strategy spans multiple geographies and property types, with focus on dynamic sectors and markets. According to Alfonso Munk, Chief Investment Officer – Americas for Hines, the DST offering received an "overwhelming response" from financial professionals and their clients, reflecting increased demand for companion 1031 exchange offerings to the firm's flagship income trust platform. Munk noted that nearly a decade since the launch of Hines Global Income Trust, structured 1031 solutions have grown into a meaningful product category addressing both tax deferment objectives and portfolio diversification needs within the institutional investor base.
The EMME offering demonstrates Hines Securities' strategic positioning of DST vehicles as comprehensive wealth preservation and estate planning solutions during a dynamic real estate market environment.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.