IIPC believes that an investment in the Parent Trust offers the following benefits:
• Strong locations with properties dispersed throughout Denver metropolitan area
• Value-add potential with planned unit upgrades at the Denver Property and Thornton Property
• Denver’s median annual income of $73,2712 is higher than the average annual income in both
• Each Property is, or will be, financed with a separate Loan with no cross-collateralization
• Each Loan has or will have a 10-year term with fixed interest rates and amortizing principal
• Inland has extensive property management expertise
• Large multifamily presence in Colorado with approximately 4,920 units under management across the state, including the Properties
• Experience in all aspects of acquiring, owning, managing and financing multifamily properties
The market dynamics are anticipated to be sustainable throughout the hold period, providing the Property Manager the opportunity to maintain or increase occupancy and to increase rental rates at the Properties. In conjunction with rental growth, the operational strategy includes monitoring and controlling expenses, and utilizing reserves effectively. To maximize property performance, a state-of-the-art computerized revenue management program will be instituted to analyze market and submarket data and establish optimal unit pricing based on a number of factors including inventory, days on market, move-in date and location. In addition, the Property Manager intends to introduce, and/or monitor the recovery of, other income and fees, such as utility costs, trash removal fees, administrative fees, application fees and pet rent.
In an effort to retain residents, the Property Manager intends to implement a lease management system that targets the number of monthly lease expirations to approximately 10 percent of the Apartment Units. Programs will also be put in place to enhance the online rating scores on apartment rental sites as well as multiple search engines, which are critical in today’s technology-driven market.
Regular meetings are held between the Asset Managers and Property Managers to review performance, discuss new leasing activity, and improve tenant retention as well as other topics. The Property Manager also expects to host regular Resident functions to foster a sense of community, and help to increase tenant retention.
Additionally, an annual property tax review and appeal program will be put in place and annual property insurance reviews will be conducted. Finally, the Asset Managers will leverage economies of scale in order to provide the most cost-effective pricing structure on contractor and vendor services.
The Parent Trust is offering (the Offering) to sell to qualified, accredited investors pursuant to this Memorandum, 100 percent of the beneficial interests in the Parent Trust. The Offering is designed for accredited investors seeking to participate in a tax-deferred exchange as well as those seeking a quality, multiple-owner real estate investment. Only accredited investors may purchase interests in this Offering.