HREX 9, DST Overview
HREX 9, DST is a $618.40 million all-cash (debt-free) Delaware Statutory Trust sponsored by Hines, offering interests in two Class A multifamily communities totaling 946 units and approximately 957,847 square feet. The portfolio comprises Life Time Living Coral Gables - a 495-unit, mixed-use high-rise (built 2021) at 225 South Dixie Highway in Coral Gables, Florida, with ground-floor commercial tenants including Life Time Fitness, Trader Joe's, [solidcore], and Sleep Number - and Left Bank, a 451-unit high-rise (built 2006) at 300 North Canal Street in Chicago's Fulton Market/West Loop. The properties were approximately 96% occupied at underwriting (Coral Gables 98.6%, Left Bank 94.7%). Because the offering is all-cash with no mortgage, there is no refinancing, covenant, or interest-rate risk. Interests are structured for Section 1031 exchange under a DST master-lease with a 1.5% annual master-lease rent increase, and the Sponsor plans a mandatory Section 721 UPREIT contribution into Hines Global Income Trust. Distributions are projected to begin at 3.76% and step up annually to 4.30% by year ten (about a 4.03% average). The appraised value equals the $569.3 million purchase price, and first-year net operating income is approximately $23.65 million. The minimum investment is $250,000.
Highlights
Two Class A assets in Tier-1 markets. The portfolio pairs a 2021-built, 495-unit mixed-use high-rise in Coral Gables (Miami-Fort Lauderdale MSA) with a 451-unit high-rise in Chicago's Fulton Market/West Loop, both institutional-quality Class A communities in primary (Tier-1) metropolitan markets. Geographic diversification between Miami and Chicago balances regional economic cycles, and the Florida asset's mixed-use format adds ground-floor commercial tenancy including Life Time Fitness, Trader Joe's, [solidcore], and Sleep Number.
All-cash, debt-free structure. The offering carries no mortgage (0.00% loan-to-value), removing refinancing risk, lender covenants, balloon-maturity exposure, and interest-rate sensitivity across the hold. For a large institutional multifamily portfolio, a debt-free capital structure provides a stable, low-volatility income base and preserves full optionality at disposition, since there is no loan to refinance, defease, or assume in connection with a sale or 721 contribution.
Global institutional sponsor. HREX 9 is sponsored by Hines, a privately held global real estate firm founded in 1957 with approximately $95.8 billion in assets under management (including its RIA platform) and operations spanning numerous countries. The properties are managed by Hines affiliates, and the offering is tied to the Hines Global Income Trust platform, giving Owners exposure to a long-tenured, vertically integrated manager with deep multifamily and mixed-use operating capabilities.
Defined UPREIT exit into Hines Global Income Trust. The Sponsor's plan is a mandatory Section 721 contribution of the portfolio into Hines Global Income Trust, converting Owners' interests into REIT operating-partnership units on a tax-deferred basis and providing a pre-defined liquidity path into a diversified institutional REIT rather than an open-market sale. As with any 721 aggregation, the timing, price, and terms are controlled by the Sponsor and are not guaranteed, and conversion to REIT units eliminates future 1031 optionality at that point.
New and recent construction in supply-constrained infill locations. The Coral Gables community was delivered in 2021 as a mixed-use high-rise in one of South Florida's most established, high-barrier submarkets, and Left Bank sits in Chicago's Fulton Market/West Loop, a dense infill corridor. The portfolio's roughly 96% occupancy, approximately $2,083 average monthly rent, and $601,797 per-unit basis reflect a high-quality, urban Class A profile; the master lease provides a contractual 1.5% annual rent increase.
Analysis of HREX 9, DST
Insights
HREX 9 is a preservation-and-quality vehicle, not an income play: debt-free, Class A, Tier-1 multifamily from a global institutional sponsor, where what you underwrite is capital stability and sponsor quality rather than yield. The strengths are real - two urban high-rises (Coral Gables delivered 2021, Left Bank in Fulton Market), ~96% occupancy, no mortgage and so no refinancing, covenant, or rate risk, Miami-plus-Chicago diversification, and the Hines platform (~$95.8B AUM) behind a mandatory 721 roll into Hines Global Income Trust. On relative value the deal screens soft across the board: its ~4.03% average and 4.30% peak distributions land Below Average versus the multifamily benchmark on starting income, peak yield, and even projected growth - so investors are neither paid market income nor buying above-market growth. The 7.48% load is middle-of-the-road for a DST, and largely what you pay for Hines sponsorship and UPREIT access - but the yield leaves little margin: a Year-1 payout ratio near 1.02 means the 3.76% distribution slightly exceeds first-year NOI, so even this modest income is fully drawn from property cash flow rather than conservatively covered. The crux is the exit. A 1.5% annual master-lease bump caps organic growth and throws total return onto the 721 contribution value - a price, timing, and structure the Sponsor controls, realized in REIT units that end 1031 optionality. Watch Hines Global Income Trust's NAV and redemption terms; that vehicle, not these two buildings, sets the outcome. Secondary risks - thin ~0.5% reserves against two high-rises, Coral Gables hurricane exposure, and forecast Chicago MSA population decline - matter at the margin. Net: this suits a 1031 investor who wants sponsor pedigree, a debt-free balance sheet, and a defined institutional-REIT landing spot, and will trade current income and control for that quality. Yield-driven exchangers, and anyone determined to preserve future 1031 flexibility, should pass.
Advantages
HREX 9 offers institutional-scale, debt-free ownership of two Class A multifamily high-rises in Tier-1 markets - a 2021-built mixed-use community in Coral Gables and an infill high-rise in Chicago's Fulton Market/West Loop - sponsored by Hines, a global manager founded in 1957 with roughly $95.8 billion in AUM. The all-cash structure (0.00% loan-to-value) removes refinancing, covenant, balloon, and interest-rate risk entirely, providing an unusually stable income base and full flexibility at exit, and geographic diversification between Miami and Chicago balances regional cycles. The properties were approximately 96% occupied at underwriting, the appraisal supports the $569.3 million purchase price, and the DST master lease provides a contractual 1.5% annual rent increase with distributions rising from 3.76% to 4.30% over the ten-year projection. A mandatory Section 721 contribution into Hines Global Income Trust offers a defined, tax-deferred path into a diversified institutional REIT. For 1031 investors prioritizing sponsor quality, capital preservation, and Class A urban multifamily in primary markets, the debt-free structure and Hines platform are the central attractions.
Concerns
The defining trade-off is a low starting yield: distributions begin at just 3.76% and rise only to 4.30% by year ten, driven by a modest 1.5% annual master-lease rent increase, so near-term income is well below most net-lease DSTs and total return depends heavily on appreciation and the eventual REIT contribution value. Reserves are thin at roughly 0.5% of equity, leaving limited cushion for capital needs at two urban high-rises. The Florida asset sits in a hurricane-exposed coastal market, and the Chicago MSA faces forecast population decline (approximately -0.4% annually through 2029), which pressures long-term rent growth at Left Bank. The exit is a mandatory Section 721 roll-up into Hines Global Income Trust, so realized value depends on that REIT's valuation and performance and on Sponsor-controlled timing, and conversion to REIT units removes future 1031 optionality. The $250,000 minimum is higher than the typical $100,000 DST minimum. As with all DSTs, Owners have no operational control, rely on the Sponsor and master tenant, and bear standard load, illiquidity, and 1031 risks; the master-lease structure also means distributions are governed by the master lease rather than direct property cash flow.
HREX 9, DST — Complete Offering Data
Offering & Structure
Investment NameHREX 9, DST
SponsorHines
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusRejected
Last Updated2026-07-29
Size & Availability
Total Offering$618,397,358
Equity$618,397,358
DebtAll-Cash
Available Equity$618,397,358 (100% of equity)
Minimum Investment$250,000
Total Load7.48%
Initial Reserves0.46%
Property
Property TypeMultifamily
StrategyCore
LocationFL, IL
Market TierTier 1
Income & Projections
Average Yield4.02%
Projected Yields (Y1–Y10)Y1 3.76% · Y2 3.82% · Y3 3.88% · Y4 3.93% · Y5 3.99% · Y6 4.05% · Y7 4.11% · Y8 4.17% · Y9 4.24% · Y10 4.30%
Tax-Adjusted Yield10.60%
Cap Rate Equivalent6.34%
Year 1 NOI$23,648,077
Y1 Payout Ratio1.02
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period10 years
721 Exchange ExitMandatory
Connected REITHines Global Income Trust
Benchmarks (vs sector median)
Avg. Income4.02% vs 4.85% market — Below Average
Growth14.36% vs 24.88% market — Below Average
Peak4.30% vs 5.55% market — Below Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
