Inland Private Capital Corporation ("IPC") announced on August 31, 2017 the sale of Mustang Park and Domaine Apartments, the two properties held by Dallas MSA Multifamily DST, per its announcement. The Delaware Statutory Trust (DST) was offered under Regulation D, and its first Form D is the earliest date the record fixes for the program. The record carries no acquisition date for either property.
What the offering disclosed at the outset, and what IPC reported at the end:
Item | Record |
|---|---|
Trust | Dallas MSA Multifamily DST |
Issuer on the Form D | Dallas MSA Multifamily Exchange |
First Form D | November 5, 2013 |
Exemption | 506(b) |
Offering amount | $40,298,164 |
Minimum investment | $25,000 |
Gross sale price | $86 million, as reported by the sponsor in its announcement |
Total return to investors | 125.65%, as reported by the sponsor in the same release |
Average annual return | 6.58%, as reported by the sponsor in that release |
The two sets of figures answer different questions. The Form D speaks to the size of the raise and the price of entry, and it classifies the offering's industry as other real estate. How IPC calculated the return figures it reported is not in the record. The terms an investor actually weighed sat in the private placement memorandum, which is not filed with the Commission.
The hold Top1031 carries, 3.8 years, runs from the first Form D to the sale date. Baker 1031's Market Data Center lists the program at a marginally longer hold, and it carries two measures the announcement does not use at all: an internal rate of return and an equity multiple. Top1031's own record carries no equity multiple for the Trust, and nothing in the record states what start date the third-party listing uses.
The record carries a gross sale price, and it does not name a buyer. Nor does it show how much of the offering ceiling investors subscribed, or what a single unit received at closing.