Investment Name
Property Location
All Investments > Investment
Overview
Investment Name
This information is being provided to select individuals on a confidential basis solely in consideration of a deal exempt under Rule 506(b). Please do not share or forward this information.
Multifamily
HREX 6 DST
Geographically Diversified
Prepare
This information is being provided to select individuals on a confidential basis solely in consideration of a deal exempt under Rule 506(b). Please do not share or forward this information.
HREX 6 DST
Geographically Diversified
All Investments > HREX 6 DST
Overview
HREX 6 DST
Hines HREX 6 DST includes two campus-adjacent multifamily properties, E2 Apartments and The Alloy (the “Properties”). E2 is a modern 352-unit apartment complex located in Evanston, IL, a neighborhood north of downtown Chicago. Less than a mile from Northwestern University’s campus, E2 offers an expansive amenity package, including an outdoor pool, hot tub, basketball court, fitness center, theater room, study rooms, lounge, and secure parking. The Alloy is a modern 275-unit apartment complex located in College Park, MD, a northeast suburb of Washington D.C. Less than a mile from University of Maryland’s campus, The Alloy offers a luxurious amenity package, including a resort-style pool, fitness center with Crossfit room, dog park, courtyard, study rooms, and garage parking. (1)
Details
For more information, view the Sponsor's Investment Memorandum.
Eligibility
1031 Exchange Only
Minimum Investment
250000
Estimated Hold Period
10 Years
Investment Type
Equity
Offering Loan-to-Value
0.0%
721 Type
Required
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
Deal Highlights
High-Quality Stabilized Assets: Both Properties are 99% leased, exhibiting demand for this asset type and their respective locations. Both properties feature a variety of amenities including outdoor pools, fitness centers, study rooms, and more. (2)
Strategic Locations: E2 and The Alloy are both within a 10-minute walk (less than a mile away) to major universities, attracting students seeking campus-adjacent housing. (3)
Limited Housing Options: Both Northwestern University and University of Maryland’s enrollments have increased 1.4% and 1.2% annually since 2014, respectively. However, Northwestern University only had capacity to provide housing for approximately 26.4% of its 2024 enrollment, while University of Maryland only had capacity to provide housing for approximately 23.8% of its 2024 enrollment. (4,5,6)
Strong Sector Fundamentals: Demand for student housing consistently outpaced enrollment growth at major universities over the past decade. Despite this, the projected new supply was lower in recent years due to factors such as higher interest rates, increased construction costs, and limited university budgets. This imbalance created a significant demand for modern, well-maintained campus-adjacent housing, as traditional on-campus dormitories often fall short. With an average of 1.34 students per bed among the top 20 universities by inventory last year, there may be a substantial shortage of student housing, potentially justifying premium pricing and alternative housing options. (7,8)
Institutional Sponsorship: Hines is a global real estate investment manager that owns and operates $93.0 billion of assets across multiple property types on behalf of a diverse group of institutional and private wealth clients. The firm’s current property and asset management portfolio includes 1,077 properties, representing over 382 million square feet. (9,10)
Debt-Free Offering: The DST is an all-cash, debt-free offering, which may reduce the risk of lender foreclosure and provide greater exit strategy flexibility. (11)
721 Exchange Eligible: The offering is eligible for a 721 exchange upon exit into OP Units, which can be tendered for common stock shares in Hines Global REIT, a globally-diversified portfolio of institutional-quality, professionally-managed real estate. (12,13)
Master Lease Guaranty: The master lease is unconditionally guaranteed by the operating partnership of a large, diversified REIT. (14)
Contact Us
Questions before investing?
Speak with our Investor Relations team.
Management
For more information, view the Sponsor's Investment Memorandum.
Hines
Hines is a leading global real estate investment manager that owns and operates $93.0 billion of assets across property types on behalf of a diverse group of institutional and private wealth clients. Hines' 4,887 employees in 31 countries draw on their 67-year history to build the world forward by investing in, developing, and managing some of the world’s best real estate.
Hines has 176 developments currently underway around the world and, historically, has developed, redeveloped, or acquired 1,751 properties totaling over 595 million square feet. The firm’s current property and asset management portfolio includes 1,077 properties, representing over 382 million square feet. With extensive experience in investments across the risk spectrum and all property types and a foundational commitment to ESG, Hines is one of the largest and most respected real estate organizations in the world.
* Assets include both the global Hines organization and RIA AUM as of June 30, 2024. There is no assurance that the experience of and management by Hines will translate into positive results for this offering.
Management Team
Property
For more information, view the Sponsor's Investment Memorandum.
| Property Name | MSA | College Campus | Year Built | Units | Leased (1) |
|---|---|---|---|---|---|
| E2 Apartments | Chicago | Northwestern University | 2015 | 352 | 99% |
| The Alloy | Washington D.C. | University of Maryland | 2019 | 275 | 99% |
(1) Based on 12/1/2024 rent roll.
Financials
For more information, view the Sponsor's Investment Memorandum.
Distributions
Please refer to the HREX 6 DST - Private Placement Memorandum in the Documents section for details regarding distributions and fees.
- Unless otherwise noted, all information above is from the HREX 6 DST Private Placement Memorandum. This material must be read in conjunction with the PPM for this offering.
- Based on the December 1, 2024, rent roll.
- Source: Google Maps (Evanston, IL & College Park, MD).
- Source: Northwestern University. See https://www.enrollment.northwestern.edu/data/2023-2024.pdf.
- Source: University of Maryland ( https://reslife.umd.edu/terp-housing/residence-halls/halls-glance).
- Source: University System of Maryland (https://www.usmd.edu/IRIS/DataJournal/Enrollment/?report=Fall-Headcount-by-Level#).
- Brookfield Oaktree; June 2024 (https://www.brookfieldoaktree.com/insight/student-housing-sector-high-demand).
- CoStar May 2024.
- As of June 30, 2024. Assets include both the global Hines organization and RIA AUM. There is no assurance that the experience of and management by Hines will translate into positive results for HREX 6 DST.
- As of June 30, 2024. Source: https://www.hines.com/about.
- There is no guarantee of success. Investors could incur a loss of all or a portion of their investment.
- Source: IRS Revenue Procedure 2002-22.
- The Fair Market Value Option may or may not be exercised. Therefore, investors should acquire DST Interests with the understanding they may not ultimately receive OP units or be able to obtain common stock. The holder of the Fair Market Value Option will not be contractually required or economically compelled to exercise the Fair Market Value Option. Operating Partnership Unit class conversion and Investor Servicing fees vary by Broker-Dealer. For further information, please see related pricing supplement.
- Although the Operating Partnership, HGIT Properties LP, is the “Guarantor” of the Master Lease, current cash flow is not an assurance of future results and does not directly represent investor return. There is no guarantee investors will receive distributions or the return of capital. See the “Summary of the Master Lease” and “Risk Related to the Master Lease Structure” sections of the Memorandum. Past performance does not guarantee future results.
Disclosures
RM Securities, LLC and its Affiliates Compensation
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLC
Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment Documents
The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of Investment
This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor Assumptions
Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past Performance
Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Offering is Not Registered
Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment Advice
Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
1031 Exchange Risk
Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLC
Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment Documents
The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of Investment
This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor Assumptions
Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past Performance
Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Offering is Not Registered
Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment Advice
Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
1031 Exchange Risk
Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.