Inland Private Capital Corporation, an alternative investment management firm, has sold two multifamily properties located in Colorado for a gross sale price of $72.5 million. The properties were sold on behalf of Colorado Multifamily Portfolio II DST, one of the firm’s 1031 exchange investment programs.
The portfolio consists of Maple Leaf Apartments in Arvada, Colorado, approximately 10 miles northwest of Denver, and Country Club West Apartments in Greeley, Colorado. As of the date of the sale, Maple Leaf Apartments was nearly 94.4 percent leased and Country Club West Apartments was approximately 93.1 percent leased.
“We purchased the properties in 2015, and through proactive asset management, the properties exceeded cash flow projections and provided a substantial profit on sale, resulting in a 13.86 percent average annualized return to investors,” said Keith Lampi, president and chief operating officer of Inland Private.
Maple Leaf Apartments consists of six apartment buildings with a total of 71 units and 85,400 leasable square feet. Constructed in 2014, the apartments include 10-foot ceilings, fireplaces, stainless steel appliance packages, in-unit washers and dryers and either an attached or detached garage in addition to outdoor parking.
Country Club West Apartments has 18 buildings with 288 units and a total of 226,000 leasable square feet. The community includes a clubhouse with a business center, a swimming pool, heated spa, playground and a fitness room.
The sale resulted in a total return to the investors of 155.84 percent (calculated based on the aggregate amount of original capital invested in the properties). The company confirmed an IRR of 12.90 percent.
To date, in 2019, Inland Private has completed 23 full-cycle dispositions, representing a total sale price of $804 million, returning more than $392.9 million in sales proceeds to investors.
Inland Private Capital Corporation had sponsored 248 private placement real estate offerings as of September 30, 2019, many of which were designed for investors seeking replacement property to complete an IRS Section 1031 exchange. The company is the largest provider of securitized 1031 exchange opportunities in the country, with a national footprint of more than 600 properties, representing approximately $7.7 billion in assets under management.