DST Offering Detail

Inland Midwest Senior Living DST

Sr. Housing

DST Offering Highlights

Inland’s Midwest Senior Living Portfolio DST offers two senior housing properties both located in strong medical areas within their respective cities – Peoria, IL, and Springfield, MO. The trust has sufficient reserves set aside to perform a value-add component to both the common spaces and the interior units at each property. With completed renovations, the DST plans to drive income through increased rental rates and continue to utilize the premier locations.
Property Status: Closed Offering
Property Type: Senior Housing
Property State:  Missouri
Property City:  Ilinois
Properties: N/A
Units:  316
Offering Size: $80,925,660
Equity Offering:  $80,925,660
Loan-to-Value: 0.00%
Loan Terms:  No Debt
Cash Flow: Call to Confirm

About Inland Private Capital

Established in 1968, Inland Private Capital Corporation (IPC) is the 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.