With a diverse portfolio of more than $10 billion in AUM across several asset classes, Inland Private Capital Corporation (“IPC”) has a unique perspective on providing liquidity to investors through full-cycle transactions and dispositions. Keith Lampi, president and chief operating officer of IPC, discusses IPC’s disposition strategy and how 2021 was record-setting for IPC, having monetized more than $1.5 billion in real estate in 2021 through its 1031 exchange platform, in the video below.
Keith Lampi 00:09
2021 was a remarkable year for the firm, we were incredibly active on both the buy and sell side of the equation having acquired north of 2.75 billion in real estate across a variety of different sectors. This was a record setting year from may acquisition perspective, that said being large acquirers of real estate provides us a unique perspective having a pulse on the marketplace from a valuation standpoint when considering providing liquidity to investors through full cycle transactions and disposition. 2021 was record setting in that respect having monetized north of 1.5 billion in transactions across a variety of different IPC sponsored programs.
The investment management strategy that we employ really varies on a program-by-program basis. There are certain instances where a strategy or sector in our opinion is fully priced, and we believe now makes the most amount of time to sell on behalf of investors to maximize their returns. There are other instances that are purely profit taking. We’re looking at the market, we’re looking at valuations in that particular market and if we see valuations that are too good to pass up today, we’re very proactive in taking advantage of those market opportunities again with the objective of maximizing returns on behalf of investors.
Fire demand ranges dramatically across the spectrum depending on the type of real estate we’re considering selling. There have been various instances where we’ve transacted with individual high net worth investors as potential buyers of our property. There are other instances where we’ve moved more into the institutional segment of the market, selling to public and private private equity firms and even foreign investors. At the end of the day our objective when considering selling the property on behalf of investors, is to get the property in front of the many potential buyers as possible with the goal of maximizing returns to investors by achieving the highest price and highest likelihood execution.
2022 is going to be another active year for the firm in terms of disposition activity. Will continue to be large scale buyers of commercial real estate in certain strategic segments of the market. So having a north of a $10 billion portfolio of assets on the management, our asset management team is incredibly proactive consistently looking at ways to maximize returns and deliver value on the back end. So, I continue to see us be active not only on the buyer side of the Ledger but also as it relates to the full cycle disposition activity.