Full cycle

Medical Office Portfolio DST reached full cycle in August 2018 when Inland Private Capital sold all four buildings

Three Illinois buildings leased to one orthopedic practice and a fourth in Massachusetts sold together, 3. 9 years after the Delaware Statutory Trust (DST) filed its first Form D.

Published Updated

Inland Private Capital (IPC) sold the four medical office buildings held by Medical Office Portfolio DST for a combined $45.7 million, as reported by the sponsor in REJournals' and AltsWire's accounts of its announcement. The closing was August 15, 2018.

Barrington Orthopedic Specialists leased the three Illinois buildings, in Bartlett, Elk Grove Village, and Schaumburg. Jordan Physician Associates leased the fourth, in Massachusetts. One practice stood behind three of the four rent rolls. The coverage does not name the Massachusetts municipality, and it gives no building sizes or acquisition dates.

The sale produced a 142.1% total return, as reported by the sponsor in REJournals' and AltsWire's reports. The annualized return was 10.76%, as reported by the sponsor in the same REJournals and AltsWire accounts. Those are the only performance figures on the record for this offering.

Field

Record

Trust

Medical Office Portfolio DST

Sponsor

Inland Private Capital

Exemption

506(b)

First Form D filed

September 23, 2014

Offering amount, as filed

$16,543,467

Minimum investment

$25,000

Form D industry classification

Other Real Estate

Exit type

Property sold

The two records of the hold do not agree. IPC's account describes a roughly 4-year hold, per REJournals and AltsWire; the span from the Trust's first Form D to the closing is 3.9 years. Top1031 relies on the filing-date span because both of its endpoints are documented, and notes that the sponsor's annualized figure is measured over the sponsor's hold period rather than over that span.

The offering amount above covers investor equity only. What the Trust paid for the four buildings does not appear in the sale coverage, and a Form D discloses no loan terms, so the sale price cannot be set against an acquisition cost from the public record. The filing carries no distribution terms. An executive summary for the offering remains publicly posted at 1031 Gateway alongside the Form D.