DST Offering Detail
Inland IPC Student Housing Portfolio DST
DST Offering Highlights
The Inland IPC Student Housing Portfolio DST is comprised of two student housing communities: one located in St. Louis, MO and the other located in Auburn, AL. As of August 2022, The Standard at St. Louis (St. Louis Property) is 90.6% occupied and oLiv Auburn (The Auburn Property) is 99.1% occupied. The Standard at St. Louis is a 163-unit (465-bed) student housing community located in St. Louis, Missouri – immediately adjacent to the main campus of Saint Louis University. Built in 2016, the property offers 1-, 2-, 3-, 4- and 5-bedroom floor plans ranging on average from 313 – 536 square feet.
The St. Louis MSA is a bi-state transportation hub with 2.81 million residents, making it the 21st largest MSA in the U.S. Originally founded in 1818, Saint Louis University (SLU), a private Jesuit non-profit institution, is one of the oldest universities in the nation with an estimated enrollment of nearly 13,000 students in the previous academic year. oLiv Auburn is a 337-unit (888-bed) student housing complex located in Auburn, Alabama – one block north of the Auburn University campus. Newly completed in August 2022, the high-end property is in the final stages of its initial lease-up period and offers studio, 1-, 2-, 3- 4- and 5-bedroom floor plans ranging on average from 330 – 1,510 square feet. The city of Auburn is located in the Columbus-Auburn-Opelika, GA-AL Combined Statistical Area. Auburn University, one of two public flagship universities in the state, heavily contributes to the local economy with roughly 31,500 students enrolled for the upcoming 2022-2023 school year.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Student Housing |
| Property State: | Multiple States |
| Property City: | Multiple Cities |
| Properties: | 2 |
| Units: | 500 |
| Offering Size: | $294,585,253 |
| Equity Offering: | $163,950,253 |
| Loan-to-Value: | 44.35% |
| Loan Terms: | 10-yr Fixed, 10-yr Interest Only at 3.75%, and 3.65% |
| Cash Flow: | Call to Confirm |
About Inland Private Capital
Established in 1968, Inland Private Capital Corporation (IPC) is an industry leader in offering replacement properties for Section 1031 exchange transactions, as well as quality, multiple-owner real estate investment solutions. Inland offers a variety of private placement real estate investment solutions to accredited investors as an alternative to traditional stocks and bonds.
Benefits of a Delaware Statutory Trust
Delaware Statutory Trusts are a popular 1031 Exchange replacement property option that allows for fractional ownership of high-quality institutional properties acquired by and managed by large real estate firms, referred to as DST sponsors. DSTs provide a unique and flexible solution to investment property owners who want to defer tax and continue to own investment property without the management requirements of directly owned property. Below are some of the benefits of investing in DST real estate.
- Tax Savings: DSTs allow for the deferral of federal capital gains tax, state capital gains tax, net investment income tax, and depreciation recapture tax. The tax savings can be significant, especially in states where the potential tax liability can be as high as 42%.
- Monthly Income Potential: DSTs are structured with an emphasis on cash flow for investors and typically include high-quality institutional property.
- Eliminate Active Property Management: Ownership of a DST is entirely management free.
- Eliminate Tax for Estate Beneficiaries: DSTs allow for a “step-up in basis” upon the passing of an owner (elimination of Capital Gains, Depreciation Recapture, and Net Investment Income Tax).
- Low-Cost Non-Recourse Debt Matching: Most investors have debt that must be matched in their exchange, therefor many DSTs are structured with debt in place.
- Low Risk of a Failed 1031 Exchange: Extensive DST property due diligence is prepared in advance and DST closings can occur quickly – in a matter of days.
DST Risks
DSTs offer many benefits however they are not suitable for everyone and come with risks. Therefore, DSTs are only available to accredited investors. Before deciding to invest in DST real estate, carefully consider the following considerations: Lack of liquidity, timing of exit, lack of control, and interest rates can affect financing, leasing, and appreciation. Additionally, loan modifications may not always be possible, cash flow is not guaranteed, and projected appreciation may not occur. There are also management costs and fees associated with owning DSTs which are disclosed in the prospectus. While not a precisely defined term, a high grade, institutional-grade, or institutional-quality property generally refers to a property of sufficient size and stature to merit attention from large national or international investors.
