Modesto Retail Center DST

3601, 3801 and 3919 Pelandale Avenue, Modesto, California 95356

Beneficial Interests: $23,574,746

Offering Price: $47,224,746

  • Loan Proceeds: $23,650,000
  • Loan to Offering Price Ratio: 50.08%
  • Current Cash Flow: 5.35%
  • Minimum Investment[1031]: $100,000

Modesto Retail Center DST, a newly formedDelaware statutory trust (the “Trust”) and an affiliate of Inland Private Capital Corporation (“IPCC”), is hereby offering (he “Offering”) to sell to certain qualified, accredited Investors (the “Investors”) pursuant to this Private Placement Memorandum (the “Memorandum”) up to 99% of the beneficial interests (the “Interests”) in the Trust.

Northpointe Shopping Center Property

The Trust owns the real estate located at 3601, 3801 and 3919 Pelandale Avenue, Modesto, California 95356 (the “Property”) located in a shopping center known as “Northpointe Shopping Center” (the “Shopping Center”). The Property contains a total of eleven single-story, commercial buildings, which includes four single tenant ground leased buildings.

INVESTMENT HIGHLIGHTS

THE FINANCING 
The Property is financed with a loan, in the principal amount of $23,650,000 (the “Loan”), from Parkway Bank and Trust Company (the “Lender”).The maturity date of the Loan is February 25, 2021 (the “Maturity Date”). Interest on the principal balance of the Loan will accrue at a fixed rate of 4.20%. Under the loan documents, the initial payment was due on March 26, 2014.The Trust is required under the Loan Documents to make monthly, interest-only payments until February 26, 2019.On each payment date beginning on March 26, 2019 the Trust will be required to make monthly payments of principal and interest.The Trust may prepay the principal amount of the Loan, in whole or part, prior to the Maturity Date without premium or penalty, so long as the Trust provides the Lender thirty days’prior written notice of such prepayment.

THE LOCATIONS

The Property is in the northwestern portion of the City of Modesto and is considered a suburban location. The City of Modesto is located about 30 miles south of Stockton, and 75 miles south of Sacramento The area surrounding the Property is a somewhat newer area of development in the northern portion of Modesto.Commercial uses are found along the main traffic corridors including Pelandale Avenue and Standiford Avenue and comprise a fairly balanced mix of retail, office and service type uses. There is a residential community just south of Pelandale Avenue and residential uses to the northwest in the Town of Salida. There are some service commercial and light industrial uses as well as agricultural land to the north of the Property.

THE OFFERING

The Offering is designed for accredited investors seeking to participate in a tax-deferred exchange as well as accredited investors seeking a quality multiple owner real estate investment. See “Summary of the Offering” and “The Offering.”

PROPERTY OVERVIEW

The Trust owns the real estate located at 3601, 3801 and 3919 Pelandale Avenue, Modesto, California 95356 (the “Property”) located in a shopping center known as “Northpointe Shopping Center” (the “Shopping Center”). TheProperty contains a total of eleven single-story, commercial buildings, which includes four single tenant ground leased buildings. As of the date of this Memorandum, the four ground leased buildings are leased to Save Mart, Tahoe Joe’s, Bank of the West and JPMorgan Chase Bank and owned by such tenants. The remaining seven buildings are leased to twenty-four Retail Tenants, including Bed, Bath & Beyond (with a sublease to Cost Plus), Pier 1 Imports,AutoZone, Aaron Brothers, Verizon Wireless, Starbucks, the Vitamin Shoppe, Catherines, Jamba Juice, Panda Express,Rabobank, N.A. and Comcast (among other Retail Tenants described on the following pages), although Rabobank, N.A.has not yet taken possession and has not started to pay rent under its lease, and one vacant tenant suite. The Shopping Center is shadow anchored by Costco and Lowes stores and contains three undeveloped parcels, but the Trust does not own the Costco parcel, the Lowes parcel or the three undeveloped parcels.

ABOUT INLAND REAL ESTATE GROUP OF COMPANIES, INC. 

The Inland Real Estate Group of Companies, Inc. (Inland) is one of the nation’s largest commercial real estate and finance groups, representing nearly 50 years of expertise and integrity in the industry. As a business incubator, Inland specializes in creating, developing and supporting member companies that provide real estaterelated investment funds – including limited partnerships, institutional funds and nonlisted real estate investment trusts (REITs) – and real estate services for both third parties and Inland-member companies.

In March 2001, Inland Private Capital Corporation was formed to provide replacement properties for investors wishing to complete a tax-deferred exchange under Section 1031 of the Internal Revenue Code of 1986, as amended, as well as investors seeking a quality, multiple-owner real estate investment. The programs sponsored by IPC offer securities to accredited investors on a private placement basis.