Inland Private Capital Corporation, a sponsor of securitized 1031 exchange offerings, has sold two wholesale club properties, located in Attleboro, Massachusetts and Baltimore, Maryland, on behalf of East Coast Wholesale Portfolio DST, one of its 1031 exchange Delaware statutory trust investment programs. The sale prices were not disclosed by the company.
East Coast Wholesale Portfolio DST launched in May 2016 and sought to raise $32.7 million in investor equity.
According to Inland Private, the sale resulted in a total return to investors of 153.95 percent of their original investment. The Attleboro property was originally purchased for $43 million, and the Baltimore property’s original purchase price could not be disclosed.
The portfolio was comprised of the 115,660-square-foot Attleboro property located at 287 Washington Street, and the 89,348-square-foot Baltimore property at 4701 O’Donnell Street. Both properties were acquired in 2016 and are 100 percent leased to BJ’s Wholesale Club Inc., a membership-only warehouse club chain that primarily operates on the East Coast.
“Throughout the pandemic, we observed aggressive capitalization rate compression on essential business tenants such as warehouse clubs, especially throughout the triple net lease segment of the market. Given the potential for strong valuations, we decided to market the portfolio for sale, resulting in a favorable outcome to investors with average annualized returns ranging from 8.9 to 10.9 percent,” said Keith Lampi, president and chief operating officer of IPC.
In other company news, Inland Private recently sold a 125,000-square-foot industrial facility located in Syracuse, New York for $13.4 million on behalf of one of its DST programs.
Inland Private has monetized more than $1.5 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.