Assets with Cash Flow and Profit Are in Sell Column

CARROLLTON, TX—A seller determined this was the right time to dispose of two multifamily properties in Texas after a successful hold period. Strong job and population growth continuing to fuel renter demand and absorption throughout the broader Dallas MSA provided the fundamentals for the right buyer.

Inland Private Capital Corporation/IPC sold the properties for a gross sale price of $86 million. IPC, through its subsidiary which serves as asset manager, facilitated the sale of the properties on behalf of one of its 1031 investment programs.

The larger of the two properties was constructed in 2009. Mustang Park Apartments is a 289-unit multifamily property located at 4645 Plano Pkwy. in Carrollton, TX. The property is comprised of 12 three-story buildings with 182 one-bedroom units, 98 two-bedroom units and nine three-bedroom units. Community amenities include a clubhouse, fitness center, business center and swimming pool.

Domaine Apartments is situated on approximately 28 acres of land located at 6400 Windcrest Dr. in Plano, TX. It consists of 29 buildings with 122 one-bedroom units, 112 two-bedroom units and 36 three-bedroom units. Community amenities include a clubhouse, business center, tanning room, fitness center and swimming pool.

“The Dallas MSA Multifamily DST was another successful full-cycle transaction on our multifamily investment platform for IPC's investors,” said Keith Lampi, president and chief operating officer of IPC. “We purchased the properties in 2013, and they provided stable cash flow during the hold period and a profit on sale, which are both key objectives of IPC-sponsored programs.”

The sale resulted in a total return to the investors of 125.65% (calculated based on the aggregate amount of original capital invested in the property). In addition, the sale resulted in a 6.58% average annual return (calculated using the cash flow from the property's operations, the proceeds from the sale, and the duration of the hold period to determine an annualized rate of return, inclusive of all fees and expenses).

“This was a profit-taking opportunity for our investors. Throughout the hold period, both assets maintained stable occupancy and generated consistent cash flow,” Lampi tells GlobeSt.com. “A sale at this time also provided liquidity to our investor base.”