Full cycle

Inland Private Capital Sold Zero Coupon Pharmacy III DST's Pharmacy Properties on July 14, 2022

The properties were sold alongside a second Inland pharmacy portfolio in a single closing, ending one of the sponsor's zero cash flow Delaware Statutory Trust (DST) programs.

Published Updated

Inland Private Capital sold the pharmacy properties held by Zero Coupon Pharmacy III DST on July 14, 2022. The sponsor described that disposition, together with the sale of a second pharmacy portfolio closed at the same time, as the first full cycle among its zero cash flow programs, in its announcement of the sales. The two portfolios together sold for $80 million, as reported by the sponsor in that announcement.

Item

Detail

Trust (marketing title on the filing)

Zero Coupon Pharmacy III DST

Title in the sponsor's announcement

Pharmacy Portfolio III DST

Sponsor

Inland Private Capital

Asset class

Other Real Estate

Structure

506(b)

Maximum offering amount

$4,871,587

Minimum investment

$25,000

Exit type

Property sold

Hold period, first Form D to disposition

8.7 years

Average annual return

16.37%, as reported by the sponsor in the announcement

Two figures for total return are on the record, and they do not agree. The sponsor's announcement puts total return at 278.10%, as reported by the sponsor in that release. AltsWire's coverage of the same transaction is titled to 265% in total returns, as reported by the sponsor and carried in that account. Top1031 relies on the announcement, the document the sponsor published under its own name, and reports both. Nothing in the record reconciles the difference, and the announcement does not state the basis for either of its return figures.

The one date the public record fixes for the offering's start is the Form D filed October 22, 2013 under CIK 1587853. The hold period above runs from that filing to the July 2022 sale.

The result was reported beyond the sponsor's own channel: IREI carried the sales on July 18, 2022. What none of the accounts do is allocate the sale price between the two portfolios, name the tenants of the properties this Trust held, or show the distribution terms the offering documents originally stated.

This is the 42nd full-cycle event Top1031 has recorded for Inland Private Capital.

Inland Private Capital Sold Zero Coupon Pharmacy III DST's Pharmacy Properties on July 14, 2022