Inland Private Capital Corporation recently brokered the sale of three multifamily communities in Milwaukee and Brookfield, Wisconsin.
IPC, through its subsidiaries that serve as asset managers, facilitated the sale of the properties on behalf of Milwaukee MSA Multifamily Portfolio DST, one of IPC’s 1031 investment programs.
The sale resulted in a total return to investors of 154.52%. Calculations are based on the aggregate amount of original capital invested in the properties.
Trostel Square Apartments, at 1818 N. Commerce St. in Milwaukee, consists of 99 units across two residential buildings. Located in Milwaukee’s Brewer’s Hill neighborhood on the banks of the Milwaukee River, the property features a clubhouse with a fitness center, business center and clubroom, as well as garage parking and nearby access to shops, restaurants, breweries and cafes. As of the date of the sale, Trostel Square was 93 percent occupied.
In Brookfield, Norhardt Apartment Homes, at 1995-2145 Norhardt Drive, is a 72-unit property comprised of four two-story residential buildings and six detached garages. Nearby Norhardt Crossing, at 1930 Norhardt Drive, is a 139-unit property consisting of 10 residential buildings and one clubhouse featuring a fitness center, business center, community center and outdoor pool. As of the date of the sale, both properties were over 94 percent occupied.
“Milwaukee MSA Multifamily Portfolio DST marks the 25th full-cycle transaction on behalf of our multifamily investment platform,” said Keith Lampi, president and chief executive officer of IPC. “We purchased the properties in 2016, and through proactive asset management, the portfolio generated consistent cash flow and provided a substantial profit on sale, resulting in a 7.01 percent internal rate of return to investors.”
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. In 2023, IPC has monetized approximately $193 million in real estate on behalf of its 1031 exchange platform.
