IPC Alternative Real Estate Income Trust Launches DST Program, Declares Monthly NAV
IPC Alternative Real Estate Income Trust Inc. – a non-traded real estate investment trust sponsored by Inland – announced that Inland Private Capital Corporation, an affiliate of the company’s sponsor, has launched a program to sponsor a series of Delaware statutory trust private placements. The series will consist of DST interests with option agreements for Class D, S, T, and I operating partnership units of the REIT.
The DST program is designed for, but not limited to, prospective investors seeking to defer the recognition of gain on the sale of other real property.
In connection with the DST program, IPC Alternative Real Estate Operating Partnership LP, which the company acts as general partner, will receive a fair market value purchase option with respect to each DST. The first private placement launched on June 27, 2024, for up to $77,202,071 in DST interests.
The launch of the DST program comes on the heels of other non-traded REITs that have successfully raised significant equity via the sponsorship of captive DST programs, including JLL Income Property Trust, Ares industrial REIT, and Hines Global Income Trust, each of which have raised more than $125 million in DST equity during the first six months of the year.
In other news, the company reported that its aggregate net asset value was approximately $145 million at the end of June versus $146.4 million at the end of May, a decrease in value by 0.9% month-over-month.
The monthly net asset value per share for its classes of common stock, as of June 30, 2024.
Class T shares had a NAV per share of $24.7737 at the end of June, compared to $24.9597 the previous month, a decline of 0.74%.
Class S shares had a NAV per share of $24.8908, compared to $25.0439 the previous month, a decline of 0.61%.
Class D shares had a NAV per share of $24.8908, compared to $25.0439 the previous month, a decline of 0.61%.
Class I shares had a NAV per share of $24.8908, compared to $25.0439 the previous month, a decline of 0.61%.
The company is focused on alternative sectors designed to deliver stable, tax-advantaged distributions to investors. It had approximately 5.8 million shares outstanding at the end of June.
As The DI Wire previously reported during the company’s fall 2023 launch, it seeks to raise up to $1.25 billion in equity via its initial offering and intends to invest in a diversified portfolio of stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties and healthcare-related properties. In addition, they may also invest in value-add or other development projects in these asset classes, potentially through a variety of ownership structures including but not limited to direct ownership, joint ventures, co-investment opportunities, preferred equity positions and others.
As of July 15, the company had issued and sold 114,077 shares of common stock in the primary offering for total proceeds of $2.9 million, and 48 shares of common stock pursuant to our distribution reinvestment plan for a total value of $1,190.
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