Inland Private Capital Corporation (“IPC”) today announced the $265 million sale of a 34-property portfolio of self-storage assets, providing liquidity to three of its sponsored Delaware statutory trust (“DST”) programs. The portfolio sale included the properties owned by Self-Storage Portfolio I DST ($129.8 million), Self-Storage Portfolio II DST ($54.7 million) and Self-Storage Portfolio IV DST ($80.4 million).
The transaction resulted in a total return to the investors ranging from 160 to 183 percent, with a weighted average total return of 169 percent (calculated based on the aggregate amount of original capital invested in the properties).
- Self-Storage Portfolio I DST was comprised of 17 self-storage properties, totaling 1,043,195 square feet and 7,612 rentable units. The properties, all purchased by the DST in 2016, are located in Georgia (2), Kansas (4) and Texas (11).
- Self-Storage Portfolio II DST included eight self-storage properties, totaling 416,135 square feet and 3,564 rentable units. The properties were purchased by the DST in 2016 and are all located in Tennessee.
- Self-Storage Portfolio IV DST included nine self-storage properties, totaling 667,826 square feet and 4,968 rentable units. The properties, all purchased by the DST in 2017, are located in Texas.
“The storage sector has seen a dramatic increase in institutional demand for large scale, self-storage transactions over the past 12 months, and as a result, we believed a portfolio sale, spanning several of our early vintage DST offerings would maximize returns to our investors. This thesis was vindicated given the significant amount of institutional demand we received upon marketing the portfolio for sale, resulting in a favorable outcome to investors with average annualized returns ranging from 11 to 16.75 percent,” said Keith Lampi, president and chief operating officer of IPC.
Similar to many of IPC’s previous dispositions, 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. To date, IPC has monetized over $1 billion in real estate in 2021 on behalf of its 1031 exchange platform.
The three portfolios were marketed for sale by Charles “Chico” LeClaire and Adam Schlosser of the LeClaire/Schlosser Group at Marcus and Millichap.
IPC specializes in offering multiple-owner, tax-focused, private placement investments as well as Qualified Opportunity Zone investments throughout the U.S. Since inception, IPC has monetized in excess of $3 billion in full-cycle transactions on behalf of its investors. Currently, IPC manages a diverse portfolio of more than $9 billion across several asset classes spanning 43 states.