Pharmacy Portfolio III DST
Pharmacy retail — sponsored by Inland Private Capital
Minimum investment
$25k
Offering size
$5.0M
How much has sold
100.0%
Asset type
Pharmacy retail
Location
Not stated
Financing
Zero coupon. Cash flow from the property goes to servicing the debt.
Sponsor-reported, from SEC filings and cited sources.
What is this, in one paragraph?
Pharmacy Portfolio III DST is a closed Delaware statutory trust — a structure that lets 1031 exchange investors hold fractional interests in real estate — that raised money from accredited investors in 2011 and 2012 to own pharmacy retail buildings under a zero cash-flow structure. Inland Private Capital sold its real estate on July 14, 2022 and reported a 278.10% total return.3
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These links support the historical public record; individual details may come from different sources.
On a 45-day clock? Find day 45 and day 180 from the sale date, then come back to this record.
What exactly is the property?
Public filings and sponsor releases never break out the individual pharmacy buildings this Trust owned; no addresses, states, or square footage appear in the record. What is documented is the exit: Inland Private Capital announced on July 14, 2022 that the real estate held by Pharmacy Portfolio III and Pharmacy Portfolio IV sold together for $80 million, a group of 12 pharmacy retail properties across 10 states.2
Who is the tenant, and what's the lease?
No tenant name, lease term, or rent figure for this Trust's pharmacy buildings appears in its Form D filings or in the sponsor's July 14, 2022 sale announcement.2 Those terms would appear only in the private placement memorandum (PPM), the confidential offering document given to prospective investors.
How did it end?
Sold after 10.9 years; sponsor reported 2.98x
Inland Private Capital Corporation announced the sale of Pharmacy Portfolio III DST on July 14, 2022 as part of a combined $80 million pharmacy portfolio sale, resulting in a total return of 278.10% and an average annual return of 16.37% (per IPC press release; reported by IREI, AltsWire, ConnectCRE, BlueVault).
Pharmacy Portfolio III DST launched in August 2011 and sought to raise $5 million; it was a pharmacy-retail zero-coupon/zero-cash-flow DST. News reports cite a 278.10% total return and 16.37% average annual return for Portfolio III. The combined III-and-IV transaction was $80 million for 12 pharmacy properties across 10 states, but the sources do not allocate the combined property count, states, square footage, or addresses to Portfolio III individually; no exact-property photo was verified.
2.98×Equity multiple · as reported by the sponsor
278.1%Total return · as reported by the sponsor
16.4%Annualized return · as reported by the sponsor
Supporting evidence
How is it financed, and what does it pay?
The Trust used a zero-coupon — also called zero cash-flow — structure: a large fixed-rate loan whose debt service absorbs essentially all rent, so investors receive little or no current income and rely instead on debt paydown and depreciation. Inland Private Capital described both pharmacy portfolios as zero cash-flow programs.2 The lender is not named in the public record.
- Financing
- Zero coupon. Cash flow from the property goes to servicing the debt.
Who's behind it?
Inland Private Capital sponsors 1031 exchange programs from Oak Brook, Illinois, the same address the Trust gave as its principal place of business.1 The Trust's Form D/A names Inland Private Capital Corporation as a promoter.4 On July 14, 2022, the sponsor announced the sale of the real estate held by this Trust and Pharmacy Portfolio IV, calling them the first of its zero-coupon offerings to be monetized.2
- Sponsor
- Inland Private Capital
- Legal Trust name
- Pharmacy Portfolio III DST
- May convert to a REIT
- No
- Offerings from this sponsor
- 8 active / 79 total offerings from Inland Private Capital
Reported by the sponsor. Top1031 does not independently audit sponsor-reported figures.
What does the paperwork say?
Organized in Delaware in 2011, the Trust sold interests only by private placement to accredited investors — buyers meeting SEC income or net-worth thresholds — with no general advertising permitted.1 A run of Form D amendments then tracked the raise from the first sale in August 2011 until the offering closed fully subscribed.
- First Form D filedThe public offering record begins.
- Offering amount recordedA Form D amendment recorded offering and sales totals.
- Filing record updatedA later amendment updated the sponsor’s filing record.
- Latest Form D filedThe most recent sponsor-filed checkpoint in this record.
- Filings on record
- 9
- How it may be offered
- Rule 506(b)Not advertised publicly. Offered through existing relationships.
- Source filing
- Read the filings on SEC EDGAR
A Form D is the notice a sponsor files when it starts raising money. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
DST interests are illiquid private securities. You may lose some or all of your investment. Distributions, tax treatment, and exit timing are not guaranteed. Review the current Private Placement Memorandum before investing.
Common questions
What happened to Pharmacy Portfolio III DST?
Top1031 lists Pharmacy Portfolio III DST as historical. It is no longer raising money.
Where does Top1031 get the data for Pharmacy Portfolio III DST?
Top1031 builds this record from the sponsor’s own SEC filings and cited sponsor disclosures. Filings can lag what is happening now. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
Can I still invest in Pharmacy Portfolio III DST?
No. The offering closed fully subscribed after a run of Form D amendments ending in 2012, and Inland Private Capital announced on July 14, 2022 that the Trust's pharmacy real estate had been sold.[2] It is a Historical Trust — closed to new investors — and appears here as a public record, not an available offering.
What does "zero coupon" or "zero cash flow" mean here?
It describes a highly leveraged structure in which a large fixed-rate loan's debt service absorbs essentially all of the property's rent. Investors receive little or no current distributions; the economics rest on principal paydown over the loan term and on depreciation and interest deductions. Inland Private Capital described both pharmacy portfolios as zero cash-flow programs.[2]
What happened to the properties?
Inland Private Capital said on July 14, 2022 that it facilitated sales on behalf of Pharmacy Portfolio III DST and Pharmacy Portfolio IV DST, a combined $80 million transaction covering 12 pharmacy retail properties across 10 states.[2] The announcement does not allocate the properties, states, or proceeds between the two Trusts.
What result did the sponsor report for this Trust?
AltsWire, reproducing the sponsor's announcement, reported a 278.10% total return and a 16.37% average annual return for Pharmacy Portfolio III; these are sponsor-reported figures, not independently audited results.[3] They are completed, historical figures for this Trust and say nothing about any other offering.
Why does this page not list an address or a tenant?
Because the public record does not settle them. Form D filings capture the offering, not the real estate, and the sponsor's 2022 sale release describes the two portfolios together. Property addresses, square footage, tenant identity, and lease terms for this Trust alone would be found in the PPM and closing documents.
Chapter 9Pharmacy Portfolio IV DST sold its pharmacy real estate on July 14, 2022, 10.4 years after its first Form D filingTop1031 Research reported that Inland sold Pharmacy Portfolio III DST's pharmacy real estate alongside Portfolio IV in a combined $80 million transaction described as a first zero-coupon DST full cycle. Inland Private Capital Corporation Monetizes its First Zero-Coupon Offerings, Achieves Total Returns Over 265%Inland announced the combined $80 million sale of Pharmacy Portfolio III DST and Pharmacy Portfolio IV DST and described the offerings as zero-cash-flow programs with properties across 10 states.