Top1031

Pharmacy Portfolio IV DST

Retail pharmacy property in Lakeland, FL — sponsored by Inland Private Capital

Minimum investment
$25k
Offering size
$5.2M
How much has sold
100.0%
Asset type
Retail pharmacy property
Location
Lakeland, FL
Financing
Zero coupon. Cash flow from the property goes to servicing the debt.

Sponsor-reported, from SEC filings and cited sources.

Chapter 1

What is this, in one paragraph?

Pharmacy Portfolio IV DST was a Delaware Statutory Trust — a passive co-ownership vehicle that qualifies for 1031 exchange treatment — holding six CVS pharmacy stores. Inland Private Capital placed its equity in 2012 with accredited investors under Rule 506(b), a private placement sold without advertising. The Trust is closed to new investors: Inland announced the sale of the portfolio on July 14, 2022.2

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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.

Chapter 2

What exactly is the property?

The Trust held six CVS pharmacy stores, in Lakeland, Florida; Athens, Georgia; New Orleans; Rockford, Illinois; Bismarck, North Dakota; and Las Vegas.3 The sponsor's offering summary described each as a one-story retail pharmacy building with a drive-thru, leased to and operated as a CVS Pharmacy store.3 That summary listed an offering price of $34,385,204 and stated no separate acquisition price.3

Reported location
Lakeland, FL
Property size
6 CVS pharmacy stores; individual sizes 11,945, 14,731, 14,755, 13,013, 13,225, and 13,352 sq ft (81,021 sq ft summed)
Chapter 3

Who is the tenant, and what's the lease?

Each store was leased to a CVS operating affiliate — among them Holiday CVS, Georgia CVS Pharmacy and Nevada CVS Pharmacy — with CVS Caremark named as guarantor.3 The sponsor described the leases as absolute net, meaning the tenant carried taxes, insurance and upkeep, on initial terms of roughly 25 years with ten five-year renewal options.3

Chapter 4

How did it end?

What happened

Sold after 10.6 years; sponsor reported 2.70x

Inland Private Capital Corporation announced the sale of Pharmacy Portfolio IV DST on July 14, 2022 as part of a combined $80 million pharmacy portfolio sale, resulting in a total return of 267.06% and an average annual return of 15.08% (per IPC press release; reported by IREI, AltsWire, ConnectCRE, BlueVault).

Six highly leveraged CVS pharmacy stores designed to produce no cash flow; listed sizes 11,945, 14,731, 14,755, 13,013, 13,225, and 13,352 sq ft (81,021 sq ft summed from those six figures). February 2012 offering sought $5.2 million; July 14, 2022 sale produced a reported 267.06% total return and 15.08% average annual return. Full-cycle article uses closed-offering language.

6 CVS pharmacy stores; individual sizes 11,945, 14,731, 14,755, 13,013, 13,225, and 13,352 sq ft (81,021 sq ft summed)
2.70×Equity multiple · as reported by the sponsor
267.1%Total return · as reported by the sponsor
15.1%Annualized return · as reported by the sponsor
Supporting evidence
Chapter 5

How is it financed, and what does it pay?

Zero coupon, also called zero cash flow, means rent was committed almost entirely to debt service: the portfolio was highly leveraged and built to produce no periodic distributions, with the sponsor stating that investors' return would come through repayment of loan principal.3 The reviewed public materials do not name the lender.

Financing
Zero coupon. Cash flow from the property goes to servicing the debt.
Chapter 7

What does the paperwork say?

The Trust's initial Form D — the SEC notice filed for a private, unregistered offering — reported a first sale on January 23, 2012, and successive amendments tracked equity as it was placed through that year.1 Rule 506(b) offerings are sold privately to accredited investors, without general solicitation or advertising.

  1. First Form D filedThe public offering record begins.
  2. Offering amount recordedA Form D amendment recorded offering and sales totals.
  3. Filing record updatedA later amendment updated the sponsor’s filing record.
  4. 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.

Chapter 8

Common questions

What happened to Pharmacy Portfolio IV DST?

Top1031 lists Pharmacy Portfolio IV DST as historical. It is no longer raising money.

Where does Top1031 get the data for Pharmacy Portfolio IV 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 IV DST?

No. The offering was fully subscribed in 2012 and the Trust is closed to new investors. Inland Private Capital announced on July 14, 2022 that the pharmacy real estate had been sold, so there is no remaining property interest to acquire.[2]

What did "zero coupon" mean for this Trust?

The portfolio was highly leveraged and designed to produce no cash flow. Rent went almost entirely to debt service, so investors received no periodic distributions; the sponsor's offering summary said the return would instead come through repayment of loan principal and any proceeds on sale.[3]

What happened when the properties were sold?

Inland Private Capital announced on July 14, 2022 the sale of Pharmacy Portfolio IV DST together with Pharmacy Portfolio III DST — 12 pharmacy properties in 10 states — for a combined $80 million, and reported total returns over 265% for the two offerings collectively.[2] Top1031 reports sponsor-attributed results for Pharmacy Portfolio IV DST specifically of a 267.06% total return on original investment and a 15.08% average annual return.[4] Inland's own release does not allocate the $80 million or the headline return to Portfolio IV alone.[2]

Who was the tenant?

Each of the six buildings operated as a CVS Pharmacy store, leased to a state-level CVS affiliate such as Holiday CVS, L.L.C. in Florida or Nevada CVS Pharmacy, L.L.C., with CVS Caremark named as guarantor of the leases.[3]

Where were the six stores?

Lakeland, Florida; Athens, Georgia; New Orleans, Louisiana; Rockford, Illinois; Bismarck, North Dakota; and Las Vegas, Nevada.[3] Listed building sizes ranged from 11,945 to 14,755 square feet, each a one-story store with a drive-thru.[3]

How was the offering sold?

As beneficial interests in a Delaware Statutory Trust, offered under Rule 506(b) — a private placement to accredited investors without general advertising.[1] The initial Form D reported a first sale on January 23, 2012, and eight later amendments updated the record through September 4, 2012.[5]

Chapter 9

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