Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges, has sold four freestanding medical office properties located in Illinois and Massachusetts for a combined $45.7 million. The properties were sold on behalf of the Medical Office Portfolio DST, one of the company’s 1031 investment programs.
The three Illinois properties were purchased in June 2014 and are located approximately 20-35 miles northwest of downtown Chicago. These include a 30,000-square-foot building located in Bartlett, a 14,700-square-foot property in Elk Grove Village, and a 40,000-square-foot property in Schaumburg. All are leased to Barrington Orthopedic Specialists, a provider of specialized orthopedic care in the northwest suburbs of Chicago.
The fourth property is located in Plymouth, Massachusetts, approximately 40 miles south of Boston. Constructed in 2013, the 30,803-square-foot building is leased by Jordan Physician Associates Inc., a Massachusetts not-for-profit corporation. The property was purchased by IPC in August 2014.
“The Medical Office Portfolio DST was another successful full-cycle transaction on our medical office investment platform for IPC’s investors,” said Keith Lampi, president and chief operating officer of IPC. “The properties all provided consistent income and a substantial profit on sale, resulting in a 10.76 percent average annualized return to investors.”
The company said that the sale resulted in a total return to the investors of 142.1 percent (calculated based on the aggregate amount of original capital invested in the property).
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 March 31, 2018, IPC had sponsored 221 private placement programs with 596 total properties. Eighty-one assets had been sold, in the aggregate, as of March 31, 2018.