Inland Takes Chicago Retail-Focused DST Full Cycle, Delivers 1.75x Equity Multiple to Investors
Real estate investment manager Inland Private Capital Corporation has sold a retail property currently leased to Best Buy and Golf Galaxy in Downers Grove, Ill., a southwest suburb of Chicago. Inland facilitated the sale of the property on behalf of Downers Grove Retail DST, one of Inland Private Capital’s 1031 investment programs.
The sale resulted in an equity multiple to Delaware statutory trust investors of 1.75x (calculations are based on the aggregate amount of original capital invested in the property).
The offering raised $11.6 million from accredited investors between August 2013 and February 2014.
Located in the 1400 block of Butterfield Road, in a high-traffic retail corridor viewed by approximately 48,000 vehicles per day, the property includes a nearly 63,000-square-foot space leased to Best Buy and approximately 38,000 square feet leased to Golf Galaxy.
“We purchased the property in 2013, and through proactive asset management, the property generated annual cash flow, plus a profit on sale, resulting in a 6.27% internal rate of return to investors,” said Keith Lampi, president and chief executive officer of Inland Real Estate Investment Corporation.
According to Inland Private Capital, this transaction provided liquidity to investors while also providing investors with the option to utilize their sales proceeds to complete a subsequent tax-deferred exchange.
Earlier this year, Inland Private Capital facilitated the sale of an apartment property, part of Colorado Springs Multifamily DST. This sale resulted in a reported equity multiple to DST investors of 1.4x.
Headquartered in Oak Brook, Ill., Inland Private Capital Corporation specializes in offering multiple-owner, tax-focused, private placement investments including qualified opportunity zone investments throughout the United States. Since inception, it has monetized more than $4.7 billion in full-cycle transactions on behalf of its investors and currently manages a diverse portfolio of more than $12.2 billion across several asset classes spanning 43 states.
Inland Private Capital Corporation is a member company of alternative investment management firm, The Inland Real Estate Group of Companies Inc. As of March 31, 2024, the firm had sponsored 315 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.
For more Inland Private Capital news, please visit their directory page.
