Colorado Portfolio Sells for $207M

Inland Private Capital Corp. sold the three properties totaling 855 units on behalf of an IRS Section 1031 investment program, bringing liquidity to more than 240 investors.
Greens at Van de Water. Image courtesy of Inland Private Capital

Inland Private Capital Corp. has announced the sale of a three-property multifamily portfolio in Colorado on behalf of one of the firm’s investment vehicles that utilize the IRS Section 1031 exchange strategy. The properties, totaling 855 units, changed hands for a gross sale price of $206.5 million. Two communities are located in the city of Loveland, north of Denver, and the third is in the Denver suburb of Westminster.

Inland Private Capital, through its asset management subsidiary, facilitated the sale on behalf Colorado Multifamily Portfolio DST to an undisclosed buyer. The deal provides liquidity for more than 240 investors, according to a prepared statement, and represents a successful exit from a portfolio that the company picked up in 2014.

Selling 855 units

The Loveland properties in the portfolio consist of the Greens at Van de Water, a 252-unit community at 2900 Mountain Lion Drive, within the Van de Water master-planned development; and Lake Vista at Centerra Apartments, a 303-unit Class A luxury community at 2235 Rocky Mountain Ave., in the Centerra master-planned development.

The communities were built in 2012 and 2011, respectively, and are more than 95 and 96 percent leased. The properties comprise nine buildings and 17 buildings, respectively. Loveland is a city of roughly 77,000 people in Larimer County located 46 miles north of Denver.

The Westminster asset, Arbour Square at Orchard Town Center, is located at 14770 Orchard Parkway adjacent to the Orchard Town Center Mall. The 300-unit, nine-building upscale community was built in 2012 and is nearly 95 percent leased. Downtown Denver is less than 15 miles to the south.

DST strategy pays off

The Delaware statutory trust (DST) utilized by Inland Private Capital is a passive investment vehicle that allows a large number of investors to own fractional interests in a single property or portfolio of properties.

In March, the company facilitated the sale of a pair of Denver communities totaling 66 units for $21.9 million on behalf of Denver Multifamily Portfolio DST. The vehicle had picked up the assets in 2015, and the disposal brought a total return on investment of 131.4 percent.

Inland Private Capital, part of The Inland Real Estate Group of Cos., had sold more than $519 million in residential assets as of April 2019.