Oak Brook, Ill. – Inland Private Capital Corporation (“IPC”) today announced the sale of two wholesale club properties, located in Attleboro, Massachusetts and Baltimore, Maryland. IPC, through its subsidiary that serves as asset manager, facilitated the sale of the properties on behalf of East Coast Wholesale Portfolio DST, one of IPC’s 1031 investment programs.
The portfolio sale resulted in a total return to investors of 153.95 percent of their original investment.
The portfolio was comprised of the 115,660-square-foot Attleboro property located at 287 Washington Street, and the 89,348-square-foot Baltimore property at 4701 O’Donnell Street. Both properties were acquired in 2016 and are 100 percent leased to BJ’s Wholesale Club, Inc., a membership-only warehouse club chain based in Westborough, Massachusetts, which primarily operates on the East Coast of the United States.
“Throughout the pandemic, we observed aggressive capitalization rate compression on essential business tenants such as warehouse clubs, especially throughout the triple net lease segment of the market. Given the potential for strong valuations, we decided to market the portfolio for sale, resulting in a favorable outcome to investors with average annualized returns ranging from 8.9 to 10.9 percent,” said Keith Lampi, president and chief operating officer of IPC.
Similar to many of IPC’s previous dispositions, this transaction provided liquidity to investors, while also providing investors with the option to utilize their sales proceeds to complete a subsequent tax-deferred exchange. IPC monetized over $1.5 billion in real estate in 2021 on behalf of its 1031 exchange platform.
IPC specializes in offering multiple-owner, tax-focused, private placement investments as well as Qualified Opportunity Zone investments throughout the U.S. Since inception, IPC has monetized in excess of $3.5 billion in full-cycle transactions on behalf of its investors. Currently, IPC manages a diverse portfolio of more than $9 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 September 30, 2021, the firm had sponsored 279 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 $9 billion, which includes a diverse national footprint of properties, spanning 43 states across various sectors. Past performance is not indicative of future performance.