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Inland Private Nets 149% Return with Illinois Retail Property Sale

Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges, sold Freedom Commons located in Naperville, Illinois on behalf of one of its 1031 investment programs. The sale price was not disclosed.

Constructed between 2007 and 2013, Freedom Commons is an 81,760-square-foot retail center with a variety of restaurant and service tenants, including AthletiCo Physical Therapy, Maggiano’s Little Italy, Morton’s the Steakhouse, Old Town Pour House and others. The property is located in Naperville, an affluent suburb approximately 33 miles west of Chicago.

“The positive leasing activity during the first quarter of the year, combined with the 10-year extension of the Maggiano’s Little Italy lease, was instrumental in positioning this asset for a successful disposition,” said Rahul Sehgal, chief investment officer of IPCC. “This was another positive full-cycle transaction for IPCC that resulted in substantial returns for our investors.”

The property was originally purchased in 2013, and coupled with cash flow generated during the holding period, the sale resulted in a total return to the investors of 149 percent (calculated based on the aggregate amount of original capital invested in the property). In addition, the sale resulted in a 15.59 percent 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).

In other Inland Private news, The DI Wire reported yesterday that the company sold a FedEx Ground facility located in Zionsville, Indiana, that resulted in a 123 percent total return to investors.

Inland Private Capital Corporation offers replacement properties for 1031 tax deferred exchanges, as well as opportunities for accredited investors who are seeking a real estate investment. As of July 31, 2016, IPCC had sponsored 191 private placement programs. The 191 private placement programs include 488 properties, comprised of more than 29 million square feet of gross leasable area for a total offering price of more than of $5.9 billion.