Inland Private Capital Corporation, a sponsor of securitized 1031 exchange offerings, has sold a 125,000-square-foot industrial facility located in Syracuse, New York for $13.4 million on behalf of New York Power DST, one of its 1031 Delaware statutory trust investment programs.
According to Inland Private, the original purchase price was $9.7 million, and the sale resulted in a return of capital to investors of 192.17 percent of their original investment and an average annual return of 8.77 percent.
Located at 7496 Round Pond Road, the property is 100 percent leased to Niagara Mohawk Corporation, also known as National Grid, an investor-owned energy company. National Grid currently serves approximately 20 million people in New York, Massachusetts and Rhode Island.
Purchased in 2011, the property was never encumbered by debt during the DST’s ownership and the tenant had five years remaining on the lease at closing.
New York Power DST launched in July 2011 and sought to raise nearly $12 million in investor equity, according to a filing with the Securities and Exchange Commission.
“Through a proactive approach, we were able to successfully extend the tenant’s lease, and subsequently complete a sale capitalizing on the value created and current market conditions. We could not be more pleased with the overall performance of the investment, both in terms of providing a profit to our investors, as well as liquidity,” said Rahul Sehgal, chief investment officer.
In other news, Inland Private recently sold eight Walgreens properties in separate transactions for $37 million on behalf of Pharmacy Sale Leaseback II DST.
Inland Private has monetized more than $1.7 billion in real estate in 2021 on behalf of its 1031 exchange platform. Since inception, the firm has monetized more than $3.5 billion in full-cycle transactions.
Inland Private specializes in offering multiple-owner, tax-focused, private placement investments as well as qualified opportunity zone investments throughout the U.S. Currently, the company manages a portfolio of more than $9 billion across several asset classes spanning 43 states.
As of September 30, 2021, the firm 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.