A Hines subsidiary purchased 200 Park Place in Houston final 12 months, for $145 million. Picture courtesy of Hines
Hines Securities Inc. has accomplished a $152 million providing of pursuits in HGIT 200 Park Place DST, a Delaware Statutory Belief designed to supply certified buyers tax-advantaged funding alternatives. The DST owns 200 Park Place, a 15-story, 206,943-square-foot workplace constructing in Houston’s River Oaks district.
Accomplished in 2020, the property at 4200 Westheimer Highway is totally leased to a various tenant roster and anchored by JLL and Buckeye Companions. The asset was sourced by Hines International Earnings Belief Inc., a division of Hines which acquired the Class A workplace constructing in July 2022 from Stonelake Capital Companions for $145 million.
The WELL-certified and LEED-certified constructing is positioned on a 1.3-acre lot and has seven parking ranges encompassing practically 700 spots. On-site facilities embody a rooftop terrace, convention middle and lounge. The property is inside strolling distance of quite a few eating and retail choices and fewer than 1 mile from the Uptown District and Interstate 610.
Hines launches HREX
In September 2022, Hines launched Hines Actual Property Trade, a platform that makes 1031 alternate alternatives out there to buyers within the type of pursuits in DSTs holding belongings sourced from HGIT. The 200 Park Place property was the primary HGIT asset to supply DST shares. The worldwide actual property funding, improvement and property administration agency filed a registration assertion for the DST providing with the U.S. Securities and Trade Fee on Sept. 19, 2022. HGIT has the choice to accumulate the properties held by the DSTs.
When Hines introduced the HREX platform final 12 months, Alfonso Munk, CIO of the Americas, mentioned in ready remarks that it was a pure development for the agency and a option to meet sturdy market demand for 1031 alternate merchandise. Citing the present market uncertainty, Munk mentioned in a more moderen ready assertion that the passion across the HGIT 200 Park Place DST confirmed buyers shared Hines’ conviction within the providing in addition to the asset.
Rising funding possibility
In Could, JLL Earnings Property Belief introduced it had totally subscribed its JLLX Diversified II DST, a five-property, $200 million diversified portfolio structured as a DST. It marked the agency’s largest 1031 alternate providing at the moment and skilled vital demand from wealth administration companies and their purchasers.
The DST featured 5 institutional-quality properties diversified by property sort, geography and tenant profile. The properties had been a 78,000-square-foot grocery-anchored procuring middle; a 559,000-square-foot bulk industrial distribution facility leased to Mitsubishi; and three medical workplace buildings leased to creditworthy medical tenants.
In early 2022, Greystone made a minority funding in Passco Cos., as the 2 companies shaped a strategic alliance to offer purchasers elevated advantages from the DST funding sector and different actual property funding alternatives. The alliance helped Greystone, a nationwide business actual property finance firm, strengthen its platform in a market the place Passco has been an business chief for greater than 20 years.
