Sponsored: Inland Private Capital Corporation Completes Record-Breaking Sale of Industry’s Largest Securitized Full-Cycle 1031 Program
Inland Private Capital Corporation’s President, Director and Chief Operating Officer shares how they completed the industry’s largest securitized full-cycle 1031 program.
Inland Private Capital Corporation (IPC) continues to break records within the securitized 1031 sector. Recognized as the leader in securitized 1031 exchange transactions, IPC has experienced explosive growth in recent years.
IPC’s most recent record-breaking activity included the sale of a portfolio of three, upscale multifamily properties located in Colorado, for a gross sale price of $206.5 million, which marked the industry’s largest securitized full-cycle 1031 program.
Purchased in 2014, the portfolio consisted of the Greens at Van de Water and Lake Vista at Centerra Apartments, both in Loveland, Colorado, and Arbour Square at Orchard Town Center in Westminster, Colorado. At the time of the sale, the portfolio had an average occupancy of 95.5 percent.
The Greens at Van de Water is a 252-unit upscale multifamily community located within Loveland’s Van de Water master-planned development. Lake Vista at Centerra Apartments is a 303-unit Class A luxury community located in the center of the award-winning Centerra master plan community. Arbour Square at Orchard Town Center is a 300-unit upscale, urban community located adjacent to Westminster’s Orchard Town Center Mall.
“This transaction provided liquidity to more than 240 investors, which represents our industry’s progression toward institutional scale and asset quality, while also underscoring the importance of proactive asset management,” commented Keith Lampi, president and chief operating officer of IPC.
While many successful real estate investments are typically attributed to prime location, Lampi believes it’s more than just location.
“While location is certainly an important aspect, asset management experience is paramount in the commercial real estate space,” he says. “It was IPC’s experience in due diligence, acquisitions and asset management that brought strong full-cycle success with this sale.”
Another differentiating factor that IPC has from its competitors is that IPC typically purchases properties on its balance sheet prior to syndication. This eliminates any potential blind pool risk or inability to purchase properties once the fund has begun raising capital.
Additionally, IPC conducts independent cash audits of DSTs. Third-party audits are important because they provide an evaluation of the appropriateness and reasonableness of accounting policies and estimates, as well as the overall presentation of financial statements.
IPC also has a successful track record in selling its 1031 assets. IPC aims to produce greater return of capital to its investors by selling properties at the optimal time in the market cycle. As of June 30, 2019, IPC had sold more than $770 million within the residential sector, producing a weighted average annualized rate of return of 9.23 percent since inception.
In 2018, IPC celebrated a record-breaking year as it raised more than $749 million in capital – a 24 percent increase from 2017. As of December 31, 2018, IPC had sponsored 232 private placement programs, which include over 18,000 residential units across 43 states, resulting in $7.3 billion in assets under management.
IPC was formed to provide a variety of private placement real estate investment solutions to accredited investors as an alternative to traditional stocks and bonds. Many of its offerings are designed to qualify as replacement property for an IRS Section 1031 exchange through a multiple-owner investment structure.
Inland Private Capital Corporation is a sponsor of The DI Wire, and the article was published as part of their standard directory sponsorship package.
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