Inland Private Capital Corporation, a sponsor of securitized 1031 exchange programs, has sold the Chenal Commons Shopping Center in Little Rock, Arkansas for $14.6 million.
The property, originally purchased in November 2004 by tenant-in-common investors for $12.3 million, was sold on behalf of Chenal Commons DST, one of the firm’s Delaware statutory trust/1031 exchange programs. The original entity, Chenal Commons 1031 LLC, launched in June 2005.
According to the company, the sale resulted in a total return to investors of 204.41 percent of their original investment, and an average annual return of approximately 6 percent.
Chenal Commons, located at 12801 Chenal Parkway, is a multi-tenant retail shopping center 100 percent leased to eight tenants. The property is comprised of two buildings, for a total of 70,150 square feet. Tenants include Petco Supplies & Fish, Shoe Carnival, Old Navy, ULTA Cosmetics, David’s Bridal, Great Clips, Kirkland’s and Elegant Nails and Spa.
“Throughout the pandemic we observed aggressive capitalization rate compression on essential business tenants such as pet supply stores as well as select value consumer segments,” said Rahul Sehgal, chief investment officer and executive vice president. “In addition, we successfully extended several leases utilizing proactive asset management strategies, and were able to subsequently capitalize on value created on behalf of our investors.”
In addition to providing liquidity to investors, the sale also provided investors with the option to utilize their sales proceeds to complete a subsequent tax-deferred exchange. Inland Private has monetized more than $1.5 billion in real estate in 2021 on behalf of its 1031 exchange platform.
Inland Private Capital Corporation specializes in offering multiple-owner, tax-focused, private placement investments as well as qualified opportunity zone investments throughout the U.S. Since inception, the firm has monetized in excess of $3.7 billion in full-cycle transactions on behalf of its investors. Currently, it manages a portfolio of $11.8 billion across several asset classes spanning 43 states.
As of June 30, 2022, the firm had sponsored 297 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.