Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges, has sold a 34-property portfolio of self-storage assets for $265 million, providing liquidity to three of its sponsored Delaware statutory trust programs.
The portfolio sale included properties owned by Self-Storage Portfolio I DST ($129.8 million), Self-Storage Portfolio II DST ($54.7 million) and Self-Storage Portfolio IV DST ($80.4 million).
According to Inland Private, the transaction resulted in a total return to investors ranging from 160 percent to 183 percent, with a weighted average total return of 169 percent (calculated based on the aggregate amount of original capital invested in the properties).
Self-Storage Portfolio I DST was comprised of 17 self-storage properties, totaling 1 million square feet and 7,612 rentable units. The properties, all purchased by the DST in 2016, are located in Georgia (2), Kansas (4) and Texas (11).
Self-Storage Portfolio II DST included eight self-storage properties, totaling 416,100 square feet and 3,564 rentable units. The properties were purchased by the DST in 2016 and are all located in Tennessee.
Self-Storage Portfolio IV DST included nine self-storage properties, totaling 667,900 square feet and 4,968 rentable units. The properties, all purchased by the DST in 2017, are located in Texas.
“The storage sector has seen a dramatic increase in institutional demand for large scale, self-storage transactions over the past 12 months, and as a result, we believed a portfolio sale, spanning several of our early vintage DST offerings would maximize returns to our investors,” said Keith Lampi, president and chief operating officer. “This thesis was vindicated given the significant amount of institutional demand we received upon marketing the portfolio for sale, resulting in a favorable outcome to investors with average annualized returns ranging from 11 to 16.75 percent.”
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, the company has monetized in excess of $3 billion in full-cycle transactions on behalf of its investors.
As of June 30, 2021, the firm had sponsored 273 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. The current portfolio includes more than $9 billion across several asset classes spanning 43 states.