Inland Private Capital Corporation Provides Liquidity, Maximizes Value of Grocery-Anchored Shopping Center in Latest DST Transaction
October 14, 2020
Oak Brook, Ill. – Inland Private Capital Corporation (“IPC”) today announced the sale of a 70,433-square-foot grocery retail property located in Mt. Pleasant, Wisconsin. The property sold for $17.84 million, an approximately 11 percent premium over investors’ acquisition price. IPC, through its subsidiary that serves as asset manager, facilitated the sale of the property on behalf of Mt. Pleasant Retail Venture DST, one of IPC’s 1031 investment programs.
Located at 2820 South Green Bay Road, the property is 100 percent leased to Kroger Co. (“Kroger”) and operates under the Pick ‘n Save retail banner. Pick ‘n Save is one of Kroger’s largest Wisconsin grocery banners, with more than 100 locations throughout the state. As a result of the store’s 2015 acquisition by Kroger, the Pick ‘n Save location experienced an approximately 14 percent increase in store sales from 2018 to 2019.
The Pick ‘n Save property was one of three contiguous parcels offered in the Mt. Pleasant Retail Venture DST program. The other two parcels, which are 100 percent occupied by six tenants, were not part of the sale.
“In today’s current retail environment, IPC took the creative tactic in subdividing the shopping center and marketing the grocery component as a stand-alone, triple net lease investment opportunity. We believe this strategy achieved max-pricing, by marketing a highly sought after, freestanding grocery asset in the seller’s market, while simultaneously reducing investor exposure to the retail sector,” said Rahul Sehgal, chief investment officer of IPC. “This profitable sale not only provided liquidity to investors, but also de-risked the remaining capital in the program by completely paying off the loan on the remaining portion of the shopping center, leaving the ownership of the two remaining parcels free and clear of debt.”
The sale resulted in a return of capital to investors of approximately 67 percent of their original investment. Investors in the program have the option to utilize their sales proceeds to complete a subsequent tax deferred exchange.
IPC specializes in offering multiple-owner, tax-focused, private placement investments as well as Qualified Opportunity Zone investments throughout the U.S. Currently, IPC manages a diverse portfolio of more than $8 billion across several asset classes spanning 43 states.
About Inland Private Capital Corporation
Inland Private Capital Corporation (IPC), headquartered in Oak Brook, IL, is a privately held, industry-leading alternative investment management firm, with an investment focus spanning across a broad range of asset types. As of June 30, 2020, the firm had sponsored 259 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. Many of IPC’s offerings have been designed for investors seeking replacement property to complete an IRS Section 1031 exchange. IPC is recognized as the largest provider of securitized 1031 exchange opportunities in the country, with assets under management (AUM) of more than $8 billion, which includes a diverse national footprint of properties, spanning 43 states across various sectors.
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