Inland Private Capital Corporation, a sponsor of securitized 1031 exchange programs, has fully subscribed Phoenix SFR DST, a single-family rental-focused Delaware statutory trust offering, bringing its total single-family rental portfolio assets under management to more than $700 million.
According to public SEC filings, the Phoenix SFR DST private placement offering launched in May 2021 and sought to raise $31.8 million from accredited investors.
“Pre-pandemic, [Inland Private] entered into the [single-family rental] market as an investment strategy focused primarily on the two largest generational cohorts, millennials and baby boomers,” said Nati Kiferbaum, senior vice president and head of investment product strategy. “[Single-family rental] communities began to exponentially grow in 2020 due to pandemic-induced disruptions on how we work and live. Today, demand continues to exceed supply, positioning it to be one of the strongest real estate asset classes.”
Inland Private’s single-family rental gated-community portfolio includes 10 properties in Arizona, one in Florida, and one in Colorado. On average, the communities are approximately 95 percent occupied with 897 homes per community, with 50 percent renewal rates. Each rental has its own private entry and backyard with community amenities that include a swimming pools, barbecue grills, dog parks and fitness centers.
Keith Lampi, president and chief operating officer, said the company’s single-family rental portfolio has experienced outsized rent growth, when compared to the traditional multifamily segment of the residential market.
“Performance to date has largely anchored on strong demand from millennials on the cusp of parenthood, hybrid employees wanting more [work from home] space and aging baby boomers seeking less homeownership responsibilities,” said Lampi.
In other news, Inland Private recently closed two qualified opportunity zone funds, Self-Storage Qualified Opportunity Fund LLC and Self-Storage Qualified Opportunity Fund II LLC, after raising more than $252 million from investors.
Inland Private specializes in offering multiple-owner, tax-focused, private placement investments as well as qualified opportunity zone investments throughout the U.S. In 2021, the firm monetized more than $1.5 billion in real estate on behalf of its 1031 exchange platform. Since inception, it has monetized in excess of $3.5 billion in full-cycle transactions on behalf of its investors.
As of September 30, 2021, Inland Private had sponsored 279 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. Currently, the firm manages a portfolio of more than $10 billion across several asset classes spanning 43 states.