Inland Private Capital Corp. has closed its second multifamily portfolio disposition this month, selling three properties for a total of $192.8 million. The properties, two in Florida and one in Indiana, comprised IPC’s Park Creek Steeple Multifamily DST.
The largest of the three assets sold during a liquidity event on behalf of one of IPC’s 1031 investment programs was the 275-unit Park Place Apartments in Oviedo, Fla. The garden-style community was sold to CGI + Real Estate Investment Strategies for $69 million.
The other assets in the portfolio were Creekside Ranch Apartments, a 256-unit community in Bradenton, Fla., and Steeplechase at Parkview Apartments, a 264-unit community in Fort Wayne, Ind. Prices paid for the two properties and the buyer or buyers were not disclosed by IPC.
All of the assets were acquired in 2015. IPC said the dispositions resulted in a total return to investors of 287.1 percent, and an average annual return of 29.2 percent. Similar to many of IPC’s previous dispositions, the transaction provided liquidity to investors while also offering the investors the option to use their sales proceeds to complete a subsequent tax-deferred exchange. To date, IPC has monetized about $1.7 billion in real estate this year on behalf of its 1031 exchange platform.
Keith Lampi, IPC president & chief operating officer, said in a prepared statement buyer demand for each of the three assets was overwhelmingly positive. He said the firm was pleased with the performance of the program, noting it provided a stable stream of income throughout the hold period while producing a nearly 3x equity multiple to investors through the dispositions.
Steeplechase at Parkview Apartments, located at 11275 Sportsman Park Lane on 26.3 acres, was acquired for $25 million from Domo Development, according to Yardi Matrix data. The property has one- to three-bedroom units ranging from 749 to 1,366 square feet, Yardi Matrix reported. The property, which was 99.2 percent occupied, features a number of walking and jogging trails and three ponds. Amenities including a swimming pool and sundeck, fitness center, community area with a designer kitchen and conference room. The units have washers and dryers and patios or balconies.
Creekside Ranch Apartments, situated at 11209 Ranch Creek Terrace on 16.7 acres, was acquired from P.A.C. Land Development. The purchase price was not disclosed but a 10-year $26.6 million loan was funded by Fannie Mae and originated by PNC Bank in July 2015. The community, which has 99.2 percent occupancy, includes a beach-entry pool with spa, indoor basketball and sports court, fitness center, professional demonstration kitchen, coffee bar, game room, volleyball court, storage units, dog park, car care center and outdoor kitchen and barbecue area. Washers and dryers are provided in each unit. The property has one- to three-bedroom units ranging in size from 806 to 1,392 square feet, according to Yardi Matrix data.
Park Place Apartments is located at 940 City Plaza Way on 9.2 acres. Prior to the sale to CGI + Real Estate Strategies, the property had last changed hands in June 2015 when it was acquired from P.A.C Land Development for approximately $63.8 million, according to Yardi Matrix data. The property, with occupancy of 99.6 percent, has one- to three-bedroom units ranging in size from 757 to 1,275 square feet. Units have washers and dryers. Community amenities include a swimming pool and spa, fitness center, clubhouse, demonstration kitchen, indoor basketball court, media room, business lounge, outdoor grilling area and car and pet washing bays.
Earlier this month, IPC sold The Wyatt in Las Vegas and Vanguard Northlake Apartments in Charlotte, N.C., for $138.5 million. The Wyatt was bought by 3rd Ave Investments for $94.2 million and Vanguard Northlake Apartments was acquired by Covenant Capital Group for $44.3 million.
In October, IPC sold a 1031 portfolio with three communities totaling 796 units in Coram, N.Y.; Lithia and Bradenton, Fla.; for $206 million.