Inland Private Capital Corporation, a sponsor of securitized 1031 exchange and opportunity zone investment programs, announced the refinancing of the multifamily development indirectly owned by Daytona Multifamily Opportunity Zone LLC. Financing proceeds from the transaction provided investors in the fund with a special distribution, representing approximately 91% of their initial investment.
Since its launch in November 2019, the fund and its joint venture partners, an affiliate of Integra Land Company and Tequesta Development Group, LLC, successfully completed construction and recapitalized Enclave at 3230, a Class A apartment community located with a qualified opportunity zone in Daytona, Florida. The property achieved stabilized occupancy in 2021, which led to a series of distributions of cash flow from operations beginning in the fourth quarter of 2021, according to Inland.
“We are thrilled to be in a position to monetize the value creation phase of the development as a result of this recapitalization event,” commented Keith Lampi, president and chief executive officer of IPC. “Given forward-looking dynamics in the capital markets, we believe our execution was well timed, allowing us to lock in long-term, fixed-rate financing on a stabilized basis, returning a majority of investors’ original investment as a result.”
The company said that in addition to receiving a majority of their original investment principal following the refinance, investors in the fund will continue to receive regular distributions, based upon cash flow from operations for the duration of the investment.
Enclave at 3230, located within walking distance to Daytona Beach at 3230 South Ridgewood Avenue in South Daytona, is more than 95 percent leased. The property is comprised of four 4-story buildings with 256 apartments, across a total of 248,832 square feet. It features a resort-style swimming pool, pet park and washing station, clubhouse with a business center, fitness center and indoor basketball court.
Inland Private specializes in offering multiple-owner, tax-focused, private placement investments as well as qualified opportunity zone investments throughout the U.S. Since inception, it has sponsored more than $7.8 billion in real estate private placements and monetized in excess of $3.5 billion in full-cycle transactions on behalf of its investors. The firm currently manages a portfolio of more than $11.78 billion across several asset classes spanning 43 states and has raised in excess of $360 million in capital in qualified opportunity zone projects.