Hines Closes Two Private Multifamily Offerings Totaling $170 Million

Hines Private Wealth Solutions announced that it has successfully closed both Hines Ann Arbor Multifamily LLC, a private placement offering for a multifamily development project in Ann Arbor, Mich., and HREX Multifamily II, DST, a Delaware statutory trust that owns The Emerson, a luxury apartment complex in Centreville, Va.

The LLC offering, launched in June, raised more than $32 million from investors, while the DST offering, launched in November 2023, raised nearly $139 million from accredited investors seeking to complete a tax-advantaged like-kind exchange under Section 1031 of the Internal Revenue Code.

Hines Ann Arbor Multifamily LLC allowed investors to make direct investments alongside Hines and Simon Property Group in the Ann Arbor project, which aims to complete a four-story, 370-unit Class A multifamily development with premier amenities by late summer 2026.

HREX Multifamily II DST is a subsidiary of Hines Global Income Trust, a non-traded real estate investment trust with a diversified $4.3 billion portfolio (as of Aug. 31, 2024). According to Hines, The Emerson, a 355-unit Class A property, was 96% leased as of June 30.

“We have conviction in the multifamily sector, particularly in strategic U.S. markets, and were pleased to provide these two diverse investment opportunities to the private wealth channel,” said Alfonso Munk, CIO-Americas at Hines.

As of June 30, 2024, the Hines private wealth platform has raised more than $11 billion through an array of offerings, including non-traded REITs, private placements, and tax-deferred exchanges.

Earlier this year, the company fully subscribed its $77 million multifamily DST offering, as previously reported by The DI Wire. In late 2023, the REIT also completed a $152 million DST offering.

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