About Inland Private Capital Corporation About Inland Private Capital
The Inland Private Capital Corporation Story
Inland Private Capital Corporation (IPC) is recognized as the industry leader in securitized 1031 exchange transactions.1 A subsidiary of Inland Real Estate Investment Corporation (Inland Investments) and a part of The Inland Real Estate Group of Companies, Inc. (Inland).
Inland has been delivering value to investors for more than 50 years. Established in 1968 by four Chicago Public School teachers, Inland is involved in every aspect of commercial real estate. Inland’s four founding principals – Dan Goodwin, Bob Baum, Joe Cosenza and Bob Parks – began investing in real estate part-time to earn extra cash while working fulltime as school teachers. In the early 1970s, the group took a leap of faith and started full-time careers in real estate. Their first investors were other teachers, family members and friends. This personal connection and responsibility to investors created a culture of putting investors first, which endures today across Inland’s business entities.
Evolution of IPC
Inland’s early investments consisted of limited partnerships including private, single asset and tax-sheltered partnerships. Partnering with broker dealers to raise capital, Inland offered its first public investment in 1985, which led to further public offerings consisting of mortgage, monthly income, growth and land funds.
The Tax Reform Act of 1986 permanently changed tax-sheltered limited partnerships. While many sponsors walked away from these investments and lost investor capital, Inland chose to make a commitment to its investors by strategically using 1031 exchanges and moving investors into new investments where they could continue to build equity. In fact, the 1031 exchange investment vehicles used were Walmart stores and, at one time, Inland was Walmart’s largest landlord.
Surpassing 58,000 total investors, Inland realized the need for a separate organization to meet the growing demand for 1031 exchange transactions and created IPC, formerly Inland Real Estate Exchange Corporation, in 2001. IPC-sponsored private placements through 2022 have been made up of 898 properties comprised of more than 78 million square feet of gross leasable area across the primary commercial real estate sectors.
|Cumulative Sales Price||$1,128,216,066||$473,700,165||$1,660,748,108||$148,370,041||$196,321,250||$62,725,000||$265,000,000|
|Weighted Avg. Total Return2||130.37%||125.42%||156.09%||138.47%||131.15%||163.70%||169.25%|
|Weighted Avg. ARR3||6.94%||4.00%||11.60%||5.56%||6.88%||11.40%||13.70%|
|Number of Programs||60||22||24||9||3||2||3|
Competitive Advantage through Vertical Integration
As part of The Inland Real Estate Group of Companies, Inc., IPC leverages the breadth and depth of Inland's wide range of real estate experts through a collaborative approach. When IPC brings products to investors, this competitive advantage shines through all stages of real estate, including acquisition, securitization, management, and disposition. Vertical integration aligns with IPC’s focus of minimizing costs and maximizing income, while also providing a number of other advantages.
IPC believes the best investment vision comes from specialized teams with distinct perspectives, operating under an organized process with strong risk oversight. IPC’s management team has substantial experience in all aspects of acquiring, owning, managing, operating and financing commercial real estate across diverse asset types.
Mitchell A. Sabshon
Chairman and Director
Mitchell A. Sabshon is President and Chief Executive Officer of Inland Real Estate Investment Corporation ("Inland Investments"), one of the nation's largest sponsors of real estate investment trusts and private securities products. He has served as a Director of IPC since September 2013, and as Chairman of the Board since January 2015. He is responsible for leading the execution of Inland Investments' long-term business strategy and capitalizing on opportunities for new product development and growth. Mr. Sabshon is also Chief Executive Officer of Inland Real Estate Income Trust, Inc., a publicly registered, non-listed multi-tenant retail REIT, InPoint Commercial Real Estate Income, Inc., a publicly registered, non-listed commercial mortgage REIT, and MH Ventures Fund II, Inc., a privately held manufactured housing community REIT.
Prior to joining Inland, Mr. Sabshon served as Executive Vice President and Chief Operating Officer of Cole Real Estate Investments. As Chief Operating Officer, Mr. Sabshon oversaw the company's finance, property management, asset management and leasing operations. Prior to joining Cole, Mr. Sabshon held several senior executive positions at leading financial services firms. He spent almost 10 years at Goldman, Sachs & Co. in various leadership positions including President and CEO of Goldman Sachs Commercial Mortgage Capital. He also served as a Senior Vice President in Lehman Brothers' real estate investment banking group. Prior to joining Lehman Brothers, Mr. Sabshon was an attorney in the corporate and real estate structured finance practice groups at Skadden, Arps, Slate, Meagher and Flom in New York.
Mr. Sabshon is a former Chairman Emeritus of the Institute for Portfolio Alternatives. He is also a member of the International Council of Shopping Centers, the Urban Land Institute, the National Association of Real Estate Investment Trusts, The Real Estate Roundtable, the National Association of Corporate Directors, a member of the Board of Trustees of Seritage Growth Properties, a publicly traded owner and developer of diversified and mixed-use properties, a member of the Board of Trustees of the American Friends of Hebrew University - Midwest Region and a member of the Board of Directors of Timeline Theatre Company. Mr. Sabshon is a member of the New York State Bar. He also holds a real estate broker license in New York. He received his undergraduate degree from George Washington University and his law degree at Hofstra University School of Law.
President and Chief Executive Officer
Keith D. Lampi serves as Director, President and Chief Executive Officer of IPC. Throughout his 20-year tenure, Mr. Lampi has helped to shape IPC into a market leader in the private real estate securities industry. As President of IPC, Mr. Lampi is responsible for directing the company’s strategic growth plans, while ensuring that Inland’s core principles, including its investor-focused approach, are reflected throughout the organization. During his career, Mr. Lampi has been involved in over $14 billion in real estate transactions across retail, office, industrial, student housing, self-storage, hospitality, senior living and multifamily property types. Mr. Lampi has also served as a Manager of Inland Real Estate Services, LLC, Inland Residential Real Estate Services, LLC and Inland Venture Real Estate Services, LLC.
Mr. Lampi was President of ADISA, the nation’s largest alternative investment securities association in 2018. In addition, Lampi served on ADISA’s board of directors for six consecutive years, and held several leadership positions with the association throughout his board tenure. He was the recipient of the ADISA Distinguished Service Award, an award presented to individuals and companies that have provided exceptional service to the association, the alternative investments industry and the overall community, in 2016.
Mr. Lampi received his bachelor degree in economics from the University of Illinois at Urbana-Champaign.
Chief Investment Officer and Director
Rahul Sehgal has been a Director and the Chief Investment Officer of Inland Private Capital Corporation since May 2012 and November 2012, respectively. Mr. Sehgal joined Inland Private Capital Corporation in 2004 and has held various positions with Inland Private Capital Corporation throughout his tenure with the firm. Mr. Sehgal currently oversees Inland Private Capital Corporation’s investment strategies, including acquisitions, dispositions, refinancing, tenant negotiations and portfolio review on behalf of ownership. In addition, Mr. Sehgal is responsible for the exploration of new asset classes and coordinating market research to collaborate with executive management in implementing the company’s long term strategic plans. Mr. Sehgal received his bachelor degree in finance from the University of Illinois at Champaign.
Senior Vice President, Head of Investment Strategy
Nati N. Kiferbaum, joined Inland Private Capital Corporation (IPC) in 2012 as a Financial Analyst and quickly moved up the ranks to his current position as Senior Vice President, Head of Investment Product Strategy. Since joining IPC, Mr. Kiferbaum has overseen more than $4 billion of capital raised from accredited investors through real estate private placements. As Senior Vice President, Head of Investment Product Strategy, Mr. Kiferbaum oversees IPC’s product development and strategy, capital raising initiatives, due diligence process, and strategic relationships. Additionally, he works closely with Inland Securities Corporation to provide the education on the underwriting, financing and structure of each IPC sponsored product. Mr. Kiferbaum received his bachelor’s degree in finance from the University of Iowa. Mr. Kiferbaum served on the Board of Directors of ADISA, the nation’s largest alternative investment securities association, of which he is a member, for a two-year term beginning in 2020.
Executive Vice President, Acquisition Structure and Finance
Joseph E. Binder currently serves as IPC’s Executive Vice President of Acquisition Structureand Finance. Mr. Binder joined IPC in April 2008 and previously held the positions of Senior Financial Analyst, Assistant Vice President and Senior Vice President. Mr. Binder oversees IPC’s acquisition and structuring process, including underwriting, financing and preparation of its private placement offerings. Mr. Binder has led this department of IPC since 2012, overseeing the company’s acquisition and offering of over $7 billion in investment real estate. As a member of IPC’s leadership team, he participates in structuring credit facilities and directing the company’s long term strategic plans. Mr. Binder received a bachelor degree in finance from the University of Wisconsin at Whitewater and began his career in 2004 working in commercial real estate brokerage, followed by work in the commercial mortgage-backed securities industry. Mr. Binder holds an Illinois Real Estate Broker’s license.
Senior Vice President, Operations
Dione K. McConnell is a Senior Vice President of IPC. Ms. McConnell joined IPC in December 2012 and oversees investment operations. Ms. McConnell is also a member of IPC’s CEO Council which is responsible for directing the company’s long term strategic plans. Prior toworking with IPC, Ms. McConnell was Vice President of Investor Relations for Retail Properties of America, Inc., a publicly traded real estate investment trust (NYSE: RPAI), from 2007 to 2012. Ms. McConnell has worked with various other companies related to Inland for over 25 years, serving in many capacities in its meeting facility and investment groups, including serving as Assistant Vice President of IREIC from 2000 until 2005 and as Vice President of Investor Relations of Inland Retail Real Estate Trust, Inc. from 2005 until it was acquired in 2007. She received her bachelor degree in marketing from Ball State University in Muncie, Indiana.
Executive Vice President, Asset Management
Daniel W. Zatloukal has served as Senior Vice President of IPC since 2014. Mr. Zatloukal also serves as the Executive Vice President for IREIC Asset Management, as well as the Senior Vice President of Inland Real Estate Income Trust, Inc. and reports directly to the Chief Executive Officer of Inland Real Estate Investment Corporation (IREIC). In his role as Executive Vice President for IREIC Asset Management, Mr. Zatloukal is responsible for overseeing the asset management function for IREIC. Mr. Zatloukal also served as the President of Inland Commercial Real Estate Services LLC and Inland Venture Real Estate Services, LLC from May 2016 through June 2017.
Mr. Zatloukal rejoined IPC in February 2013 after previously working for IPC from 2004 through 2007 in the structuring and financing department. Prior to rejoining Inland, Mr. Zatloukal served as Vice President of Capital Markets at Jones Lang LaSalle in Atlanta from 2007 through 2013. Mr. Zatloukal received his bachelor degree in finance from the University of Illinois at Urbana-Champaign.
Who is Inland Private Capital Corporation?
In 2001, IPC was formed to provide replacement properties for investors wishing to complete a tax-deferred exchange under Section 1031, as well as investors seeking a quality, multiple-owner real estate investment. The programs sponsored by IPC offer securities to accredited investors on a private placement basis. IPC was the recipient of the 2006 and 2015 ACE (A Champion of Excellence) Awards given by the Alternative and Direct Investment Securities Association (“ADISA”), formerly known as the Real Estate Investment Securities Association, a trade association of the real estate securities industry. IPC is a founding member of ADISA.
What is IPC’s Investment Philosophy?
Integrity, expertise and innovation are the three hallmarks of Inland. IPC constantly reinforces the importance of both research and market-driven product development, with an unwavering focus on delivering performance to our investors. Our disciplined acquisition process focuses on origination, underwriting and property due diligence, and active asset management is the key to adding value and increasing potential earnings for investors.
What Distinguishes IPC's Approach from its Competitors?
IPC is part of The Inland Real Estate Group of Companies, Inc., one of the nation’s largest commercial real estate and financial institutions with more than 50 years of experience. IPC’s management acumen, financial strength and operational knowledge allows us to focus on our properties and the fundamentals of our business. Through active property management, IPC strives to improve operational efficiency, grow operating income, and generate returns to investors.
What Asset Classes Does IPC Offer?
IPC is active in most commercial real estate sectors including Multifamily, Self-Storage, Senior Living, Industrial, Medical/Healthcare, Retail, Office, and Student Housing. DST offerings are typically asset-class specific and may comprise a single property or multiple properties, which provide diversification within the asset class. IPC's QOZ investments focus on the Hospitality, Multifamily and Self-Storage sectors.
For More Information
Inland Private Capital investment programs are sold by broker dealers and registered investment advisors authorized to do so.
Contact your financial professional to learn more. Or, for help finding a financial professional:
Inland Private Capital Investment Programs are sold by broker dealers and registered investment advisors authorized to do so.
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1 Source: Mountain Dell Consulting 1031 DST/TIC Market Equity Update 2021 year-end report. Statement based on total equity raised.
2 Weighted Average Total Return (TR) For each full-cycle program, the TR is calculated by dividing the sum of amounts distributed to investors plus the net sale proceeds returned to the investors, by such investors’ capital invested in the program inclusive of all fees and expenses. To determine the weighted average Total Return in each asset class, the Total Return for each program within that asset class is multiplied by the capital invested in that program, divided by the total capital invested in all full-cycle programs within that asset class since inception (2001).
3 Weighted Average Annualized Rate of Return (ARR) For each full-cycle program, the ARR is calculated by dividing (a) the sum of (i) total cash flows distributed during the term of the investment program, plus (ii) any net sales proceeds distributed less the investors’ original capital, by (b) the investors’ original capital; with the result then further divided by (c) the investment period (in years) for that program. To determine the weighted average in each asset class, the ARR for each program within that asset class is multiplied by the capital invested in that program, divided by the total capital invested in all full-cycle programs within that asset class since inception (2001).
Full-Cycle Programs are those programs that no longer own any assets. However, in certain limited situations in which the subject property(ies) were in foreclosure, IPC has negotiated with the lenders and advanced funds to the investors to allow the investors to exchange their beneficial interest in the original program for a proportionate beneficial interest in a new program, in order to continue their Section 1031 exchanges and avoid potential capital gains and/or forgiveness of debt tax liabilities. Because such exchanges result in an investment continuation, the original programs are not considered full-cycle programs for these purposes.