Inland New York Grocery DST

Inland New York Grocery 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:

New York Grocery DST is a 4.129 acre property with a single-story biulding that is occupied by a single tenant (A&P Real Property) with a long-term triple net lease. A&P operates over 300 grocery stores under various brand names, including Food Basics, Pathmark, Superfresh, and Waldbaum's. The property is accessible by car and public transit, and has 496,739 people within a five mile radius. The average household income of this population is $104,733 as of 2012. The property was acquired using cash and a 10-year term loan with a fixed rate of 4.274%. The loan is collateralized by the property and is non-recourse to the individual investors in the DST.


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 invesment, 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 strong corporate credit.
  2. Capital gains tax deferral as a 1031 replacement property option.
  3. An option for income-tax deferral 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 initial forecast over the past 11 months, 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.


Cash-on-Cash Return:

Year2013
Projected6.45%
Actual6.45%
Variance0.00%


[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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