Full cycle

Zero Coupon Pharmacy IV DST Sold on July 14, 2022 in a Combined Two-Portfolio Pharmacy Deal

Inland Private Capital announced the sale under the name Pharmacy Portfolio IV DST, a marketing title the Trust's own filing record does not carry.

Published Updated

Inland Private Capital announced the sale of the pharmacy properties held by Zero Coupon Pharmacy IV DST together with the portfolio of a companion trust. Both were Delaware Statutory Trust (DST) programs structured as zero cash flow. The two portfolios sold for a combined $80 million, as reported by the sponsor in its July 14, 2022 announcement and by Institutional Real Estate, Inc. on July 18, 2022.

The Trust produced a 267.06% total return on original investment, as reported by the sponsor in the same announcement. The price attributable to the Zero Coupon Pharmacy IV DST properties alone is not broken out.

Item

On the record

Sponsor

Inland Private Capital

Trust, as filed

Zero Coupon Pharmacy IV DST

Name used in the sponsor's announcement

Pharmacy Portfolio IV DST

Asset class, as filed

Other Real Estate

Exemption

506(b)

First Form D

March 27, 2014

Offering amount, first Form D

$9,921,950

Minimum investment

$25,000

Exit type

Property sold

Exit date

July 14, 2022

Hold, first Form D to sale

8.3 years

Average annual return

15.08%, as reported by the sponsor in its July 14, 2022 announcement

The announcement does not date the acquisitions or the start of the offering, so the period over which its stated returns were earned is not established there. The hold above runs from the Trust's first Form D, the primary document filed under its own CIK.

The filing record for CIK 1603337 carries that Form D and no performance figures. Nothing in it states what the offering originally disclosed about distributions, debt terms, or hold. The sponsor's result therefore stands without the Trust's own terms beside it.

One wrinkle in the coverage: ConnectCRE published its report on the transaction under a URL carrying a whole-number total return lower than the figure in the sponsor's announcement. Top1031 states the sponsor's number, because the sponsor is the party that reported it and the announcement is the primary document. No source in the record reconciles the two.

The sponsor's announcement presents these as the first of its zero coupon offerings to be monetized. This one enters the record on a sponsor announcement, trade coverage, and a Form D.