Inland Delivers 1.48x Equity Multiple to DST Investors With Student Housing Sale
Real estate investment manager Inland Private Capital Corporation announced the sale of Uptown Square, an off-campus student housing property serving Texas State University in San Marcos, Texas. Through its subsidiary which serves as asset manager, Inland Private Capital facilitated the sale of the property on behalf of San Marcos Student Living DST, one of Inland Private Capital’s 1031 investment programs.
The sale resulted in an equity multiple to investors of 1.48x. The calculations are based on the aggregate amount of original capital invested in the property.
The initial equity raise from accredited investors was approximately $24.3 million and occurred between January and September 2016.
Uptown Square, located in the 1300 block of Thorpe Lane, consists of 316 units with studio, one-, and two-bedroom options. The property features a clubhouse with a 3,000-square-foot fitness center, a resort-style swimming pool, an outdoor kitchen and grilling stations, and a dog park. It is conveniently located on the university bus route.
As of the date of the sale, Uptown Square was approximately 90.8% preleased for the 2024-2025 school year.
“Institutional demand for purpose-built student housing properties remains robust, driven by the sector’s resilience, accretive yields, and the increasing number of students seeking high-quality housing options at large state universities,” said Keith Lampi, president and chief executive officer of Inland Private Capital.
“We purchased the asset on behalf of investors in 2015 and elected to sell in advance of its debt maturity, resulting in another profitable execution on [Inland Private Capital’s] investment track record,” he added.
Similar to many of the company’s previous dispositions, this transaction provided liquidity to investors, while also providing investors with the option to utilize their sales proceeds to complete a subsequent tax-deferred exchange. Inland Private Capital’s current portfolio of multifamily assets spans more than $4.6 billion as of June 30, 2024.
Last month, Inland Private Capital took a Fort Meyers, Fla., DST full cycle, achieving a 6.45% internal rate of return for investors. In June 2024, Inland Private Capital sold an Illinois retail property on behalf of Downers Grove Retail DST, resulting in an equity multiple to DST investors of 1.75x. And earlier this year, it facilitated the sale of an apartment property – Colorado Springs Multifamily DST – resulting in a reported equity multiple to DST investors of 1.4x.
Headquartered in Oak Brook, Ill., Inland Private Capital Corporation specializes in offering multiple-owner, tax-focused, private placement investments including qualified opportunity zone investments throughout the United States. Since inception, it has monetized more than $4.7 billion in full-cycle transactions on behalf of its investors and currently manages a diverse portfolio of more than $12.2 billion across several asset classes spanning 43 states.
Inland Private Capital Corporation is a member company of alternative investment management firm, The Inland Real Estate Group of Companies Inc. As of March 31, 2024, the firm had sponsored 315 private placement real estate offerings, with investments and developments in the multifamily, self-storage, hospitality, healthcare, student housing, retail, corporate office, senior living, and industrial sectors.
For more Inland Private Capital news, please visit their directory page.
