Inland Takes Florida DST Full Cycle, Achieving 6.45% IRR to Investors
Real estate investment manager Inland Private Capital Corporation has sold Brantley Pines, a multifamily property located in Fort Myers, Fla. Inland Private Capital, through its subsidiary which serves as asset manager, facilitated the sale of the property on behalf of Fort Myers Multifamily DST, one of Inland Private Capital’s 1031 investment programs.
The sale resulted in an equity multiple to investors of 1.37x. The calculations are based on the aggregate amount of original capital invested in the property.
The initial equity raise from accredited investors was $23.3 million and occurred between January to September 2019.
Brantley Pines, located at 1801 Brantley Road, consists of 296 units across 19 two-story residential buildings. The property features a clubhouse with a fitness center, a resort-style swimming pool, a sundeck and lounge area with a summer kitchen, sand volleyball and tennis courts, a dog park, picnic area with grills, a car care center and carports. As of the date of the sale, Brantley Pines was about 92% occupied.
“While rising interest rates have stymied transaction volume throughout the broader commercial real estate market, investor demand remains strong for multifamily properties in many markets,” said Keith Lampi, president and chief executive officer of Inland Real Estate Investment Corporation.
“We purchased this property in 2019, and through proactive asset management, the property’s occupancy rates trended higher than average, its net operating income increased accordingly, and we generated a profit on sale, resulting in a 6.45% internal rate of return to investors.”
Similar to many of Inland Private Capital’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.
Last month, Inland Private Capital sold an Illinois retail property on behalf of Downers Grove Retail DST, resulting in an equity multiple to DST investors of 1.75x. And earlier this year, it facilitated the sale of an apartment property – Colorado Springs Multifamily DST – resulting in a reported equity multiple to DST investors of 1.4x.
Headquartered in Oak Brook, Ill., Inland Private Capital Corporation specializes in offering multiple-owner, tax-focused, private placement investments including qualified opportunity zone investments throughout the United States. Since inception, it has monetized more than $4.7 billion in full-cycle transactions on behalf of its investors and currently manages a diverse portfolio of more than $12.2 billion across several asset classes spanning 43 states.
Inland Private Capital Corporation is a member company of alternative investment management firm, The Inland Real Estate Group of Companies Inc. As of March 31, 2024, the firm had sponsored 315 private placement real estate offerings, with investments and developments in the multifamily, self-storage, hospitality, healthcare, student housing, retail, corporate office, senior living, and industrial sectors.
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