Inland Private Capital Corporation Goes Full Cycle with Sale of Three Milwaukee-Area Multifamily Communities, Delivers 155% Investor Return
October 30, 2023Oak Brook, Ill. – Inland Private Capital Corporation (“IPC”) today announced the sale of three multifamily communities in Milwaukee and Brookfield, Wisconsin. IPC, through its subsidiaries which serve as asset managers, facilitated the sale of the properties on behalf of Milwaukee MSA Multifamily Portfolio DST, one of IPC’s 1031 investment programs.
The sale resulted in a total return to investors of 154.52 percent, (calculations are based on the aggregate amount of original capital invested in the properties).
Thirty minutes from Phoenix’s Sky Harbor International Airport, the senior community (for 55 years and older) RV Resort offers 125 RV sites, 80 of which are park models. The community features amenities such as a clubhouse, pool, spa, bocce ball, horseshoe pit, fire pit, BBQ grill station and dog park.
Trostel Square Apartments, at 1818 North Commerce Street in Milwaukee, consists of 99 units across two residential buildings. Located in Milwaukee's Brewer's Hill neighborhood on the banks of the Milwaukee River, the property features a clubhouse with a fitness center, business center and clubroom, as well as garage parking and nearby access to shops, restaurants, breweries and cafes. As of the date of the sale, Trostel Square was 93 percent occupied.
In Brookfield, Norhardt Apartment Homes, at 1995-2145 Norhardt Drive, is a 72-unit property comprised of four two-story residential buildings and six detached garages. Nearby Norhardt Crossing, at 1930 Norhardt Drive, is a 139-unit property consisting of 10 residential buildings and one clubhouse featuring a fitness center, business center, community center and outdoor pool. As of the date of the sale, both properties were over 94 percent occupied.
“Milwaukee MSA Multifamily Portfolio DST marks the 25th full-cycle transaction on behalf of our multifamily investment platform,” said Keith Lampi, president and chief executive officer of IPC. “We purchased the properties in 2016, and through proactive asset management, the portfolio generated consistent cash flow and provided a substantial profit on sale, resulting in a 7.01 percent internal rate of return to investors.”
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. In 2023, IPC has monetized approximately $193 million in real estate 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 approximately $3.9 billion in full-cycle transactions on behalf of its investors. Currently, IPC manages a diverse portfolio of more than $12.2 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 member company of The Inland Real Estate Group of Companies, Inc., an industry-leading alternative investment management firm, with an investment focus spanning across a broad range of asset types. As of June 30, 2023, the firm had sponsored 310 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 a leading provider of securitized 1031 exchange opportunities, with assets under management (AUM) of more than $12.2 billion, which includes a diverse national footprint of properties, spanning 43 states across various sectors. Past performance is not indicative of future performance.