DST Offering Detail
Inland VA Coastal Logistics DST
DST Offering Highlights
Inland’s VA Coastal Logistics DST consists of a triple-net lease (NNN) industrial property located in Chesapeake, Viriginia – approximately 13 miles west of downtown Norfolk. The Virginia Beach MSA, often referred to as the Hampton Roads, is home to the Port of Virginia, which is one of the largest shipping ports in the U.S. In addition to a strong logistics network, Hampton Roads features a substantial federal presence. The MSA has the largest concentration of military bases and facilities of any metropolitan area in the world and is home to nearly one-fourth of the nation’s active-duty military personnel. The facility, leased by Amazon.com, is nearly 630,000 square feet and assists in servicing orders throughout much of the Mid-Atlantic region. Spanning over 73 acres, the Amazon Inbound Cross Dock (IXD) center offers 936 vehicle parking spaces in conjunction with 125 loading dock bays. As of July 2021, Amazon committed to a 15-year lease, which includes three 5-year renewal options. The DST has no debt.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Triple-net Lease |
| Property State: | Virginia |
| Property City: | Chesapeake |
| Properties: | 1 |
| Units: | - |
| Offering Size: | $178,000,547 |
| Equity Offering: | $178,000,547 |
| Loan-to-Value: | No Debt |
| Loan Terms: | 0% |
| 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. 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.
