Inland has launched a new non-traded, perpetual-life REIT, IPC Alternative Real Estate Income Trust Inc., which seeks to raise up to $1.25 billion in equity via its initial offering, which was declared effective by the Securities and Exchange Commission late last week. Keith Lampi, the president and chief executive officer of Inland Private Capital Corporation, serves as chairman of the board and CEO of the REIT.
According to the company’s prospectus, the minimum initial investment in Class T, Class S or Class D shares is $2,500, and the minimum subsequent investment in such shares is $500 per transaction. The minimum initial investment in Class I shares is $1 million and the minimum subsequent investment in such shares is $500 per transaction.
IPC Alternative REIT says that it intends to invest in a diversified portfolio of stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties and healthcare-related properties. In addition, they may also invest in value-add or other development projects in these asset classes, potentially through a variety of ownership structures including but not limited to direct ownership, joint ventures, co-investment opportunities, preferred equity positions and others.
In connection with the REIT being declared effective, its board of directors authorized a distribution on the company’s Class I common stock in the amount of $0.0885 per share to stockholders of record as of Sept. 30, 2023, which the company expects to pay this week.
Originally formed on June 17, 2021, as a Delaware limited liability company named “Inland Private Capital Alternative Assets Fund LLC,” the company acquired a portfolio of 30 medical office properties on Sept. 2, 2021, through a roll-up transaction with eight separate programs sponsored by an affiliate of their sponsor. In exchange for the properties, their operating partnership issued limited partnership units to the Delaware statutory trusts that owned the properties, which were distributed to the investors in those trusts and classified as Class A OP Units.
In addition, on Dec. 1, 2022, the REIT acquired a student housing property from an investment program sponsored by an affiliate of Inland Private Capital’s sponsor. On June 12, 2023, the company officially converted to a Maryland corporation named IPC Alternative Real Estate Income Trust Inc.
IPC Alternative REIT intends to qualify as a real estate investment trust for U.S. federal income tax purposes beginning in 2024.