Inland Chicagoland Multifamily DST

Inland Chicagoland Multifamily DST

[This offering is fully subscribed. This is provided as an example of one of the offerings our affiliates have recommended to clients in the past.]

Description:

Inland Chicagoland Multifamily DST is a .57 acre property with a five-story building that comprises 6,000 square feet of retail space and 59,420 square feet of residential space. The offering provides potential upside to the investor since the retail space had not yet been leased or underwritten in the cash flow projections. Therefore, any leasing progress will drive up the net operating income and the cash flow to investors. The residential space is subdivided into 59 apartment units. The property is located Albany Park on the Northwest side of Chicago, about eight miles North of the Chicago Central Business District and near major area redevelopments and public transportation. The population within a three-mile radius of the property is 481,930. The average annual household income of this population is $66,761 as of 2012. The total offering price for this investment property was $13,782,547, of which $6,000,000 comprised long-term, interest-only, non-recourse financing, and $7,782,547 was equity (43.53% LTV).


Tax-Benefits:

The investment was structured as a Delaware Statutory Trust (DST) designed to qualify as a replacement property in a 1031 exchange. Depending on each investor's tax basis at the time of investment, many investors were also able to utilize depreciation to defer the taxes on a portion of the income derived from the investment.


Goals:

  1. Stable, long-term cash flow backed by value-oriented multifamily property.
  2. Capital gains tax deferral as a 1031 replacement property option.
  3. An option for income-tax avoidance via depreciation.
  4. Potential long-term upside, either due to a sale or to increasing rental income.


Status:

This property has performed inline with its projections, providing steady cash flow for 1031 and cash investors. Individual investors in the program will be able to derive income-tax deferral from the depreciation allowed for commercial real estate.


Annualized Cash Flow Return:

Year20122013
Projected5.75%5.75%
Actual5.75%5.75%
Variance0.00%0.00%


[Past performance does not guarantee future results. This offering’s results are not necessarily indicative of future recommended offerings. Real Estate Investing is subject to risk, including, but not limited to potential disruptions in cash flow, loss of principal, illiquidity, etc.]

 
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