DST Offering Detail

Inland Self-Storage Portfolio VII DST


DST Offering Highlights

Inland Self-Storage Portfolio VII, DST is a portfolio comprised of 21 self-storage properties with locations diversified over four states. The current average occupancy for the units is just over 83%. The portfolio provides 1,463,248 rentable square feet within the 10,824 units. The self-storage sector has experienced a 3.7% annual growth rate over the last 5 years and this trend is expected to continue.
Property Status: Closed Offering
Property Type: Self Storage
Property State:  Multiple States
Property City:  Multiple Cities
Properties: N/A
Units:  10,824
Offering Size: $137,230,446
Equity Offering:  $66,230,446
Loan-to-Value: 51.74%
Loan Terms:  10-yr Fixed, 5-yr Interest Only at 4.14%
Cash Flow: Call to Confirm

About Inland Private Capital

Established in 1968, Inland Private Capital Corporation (IPC) is recognized as an industry leader in securitized 1031 Exchange transactions and offers a variety of private placement real estate investment solutions to accredited investors as an alternative to traditional stocks and bonds. As of December 31, 2019, IPCC has sponsored 255 private placement programs. Through these private placement programs, IPCC has raised more than $5.5 billion in equity from over 9,000 investors. The 255 private placement programs include 716 property acquisitions and 120 property dispositions among 44 states servicing over 12,500 investors.

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.