Inland Private Capital Sells Colorado Property, Generates 21.6% IRR

Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges, sold the 263-unit Canyons at Saddle Rock apartments for $56.8 million.

The 277,373-square-foot property is located at 6850 Versailles Way, just north of E-470 in Aurora, the third largest city in Colorado. The Class A, garden-style, multifamily residential complex includes 17 two-story and three-story apartment buildings and a clubhouse building with a swimming pool, fitness center, billiards room and a business center.

Constructed in 2008, the residential buildings are comprised of 134 one-bedroom, 94 two-bedroom and 35 three-bedroom apartments. The apartments average 1,054 square feet of livable space and include full-size washers and dryers. Select units feature amenities including gourmet kitchens, fireplaces and attached garages.

“This investment was another very successful full-cycle deal on IPCC’s multifamily investment platform,” said Keith Lampi, president and chief operating officer of IPCC. “We purchased the property in February 2014, and it performed positively due to the property’s compelling location, strong demographic fundamentals and an outstanding property management staff. The result was a substantial return for our investors and an opportunity for them to invest a significant portion of the proceeds into other properties owned by different Inland-sponsored programs.”

The property was sold at a substantial premium to the investors’ purchase price. Coupled with cash flow generated during the holding period, the sale resulted in a total return to the investors of 139 percent (calculated based on the aggregate amount of original capital invested in the property). In addition, the sale resulted in a 21.6 percent internal rate of return (calculated using the time value of money, the cash flow from the property’s operations and the proceeds from the sale to determine an annualized compounded rate of return, net of all fees and expenses).

Inland Private Capital Corporation offers replacement property investments for persons participating in a 1031 tax deferred exchange, as well as opportunities for accredited investors who are seeking a real estate investment. As of December 7, 2015, IPCC has sponsored 181 private placement programs. The 181 private placement programs include 450 properties, comprised of over 25.81 million square feet of gross leasable area, for an aggregate offering price of more than $5.270 billion.

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