Inland REIT Adds Self-Storage Portfolio via Acquisition of Affiliated DST
IPC Alternative Real Estate Income Trust Inc., a non-traded, perpetual-life REIT sponsored by Inland Real Estate Investment Corporation, announced the acquisition of four self-storage properties, two located in the Atlanta, Ga., metropolitan area, and two in Montgomery, Ala. In total, the self-storage properties are comprised of 2,275 storage units, including 1,810 climate-controlled units, that encompass nearly 251,000 square feet.
The REIT acquired the properties through the acquisition of 100% of the beneficial interests in Self-Storage Portfolio V DST, a Delaware statutory trust sponsored by Inland Private Capital Corporation. The private placement offering, launched in 2017, raised nearly $16.5 million of equity from accredited investors.
The aggregate purchase price of the REIT’s acquisition was approximately $25.5 million, which is equal to the independently appraised value of the properties performed by a real estate valuation firm, less approximately $17.7 million in indebtedness secured by the properties. The property appraisals performed by the firm were independently reviewed by Plante Moran, and the real estate income trust’s independent directors separately engaged Robert A. Stanger & Co. to review the value ascribed to the properties.
Each investor in the trust was given the opportunity to receive either cash or a number of limited partnership interests in the operating partnership in connection with the transaction.
“The acquisition was significant as it marks [IPC Alternative Real Estate Income Trust’s] strategic entry into the self-storage sector, which is one of its primary investment targets with a focus on alternative real estate sectors,” said Keith Lampi, chief executive officer of the Company.
This latest acquisition brings the REIT’s portfolio to 35 assets in the healthcare, student housing, and self-storage sectors in 12 states and with a total estimated property value of $410.9 million.
IPC Alternative Real Estate Income Trust Inc. is a public, non-listed, monthly-valued, perpetual-life entity focused on alternative sectors. As of Dec. 31, 2023, ALT REIT’s operating partnership owned 30 medical office building properties totaling almost 747,000 square feet and one student housing property with 406 student housing beds. The properties are in 10 states.
Inland Private Capital Corporation, headquartered in Oak Brook, Ill., specializes in offering multiple-owner, tax-focused, private placement investments including qualified opportunity zone investments throughout the United States. Currently, Inland manages a diverse portfolio of more than $12.2 billion across several asset classes spanning 43 states.
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