An investment in the National Multifamily Portfolio I DST may offer the following benefits:
• New “Class A” Multifamily Properties
Each Property is a newly constructed “Class A” property. The Charlotte Property, constructed in 2015-2016, features an extensive amenities package, including hardwood flooring, crown molding, granite countertops and walk-in closets in the apartment units; the Charlotte Property’s community includes an outdoor salt water pool, a sun deck, a fireside lounge and a wine tasting lounge. The Lakewood Property’s units, also built in 2015-2016, contain granite countertops, modern lighting, stainless steel appliances and balconies or patios, and the community amenities include an outdoor playground, a spa, a resort-style pool as well as cabanas, BBQ grills and an outdoor lounge. The Naples Property, built in 2015-2016, features apartment units with granite countertops, maple cabinetry and double vanities, as well as community amenities that include a gated entryway, state-of-the art clubhouse and resort-style pool and spa. The Vegas Property’s units, constructed in 2014-2015, include quartz countertops and stainless steel appliances; the community amenities include a resort-style pool with cabanas, a dog park, a playground, a media room and a community BBQ area.
• Diverse Geographic Markets
The Parent Trust’s portfolio of Properties includes four strong markets – Charlotte, Denver, Naples and Las Vegas.
• Experienced Property Management
Inland’s management team has experience in all aspects of acquiring, owning, managing and financing real estate, including multifamily properties. As of the date of this Memorandum, Inland had acquired and managed over 70,000 multifamily units throughout the United States. “Inland” is defined in the Memorandum.
• Separate Loans
Each Property has been, or will be, financed with a separate Loan (as defined herein). The Loans will not be cross-collateralized or cross-defaulted, meaning a default under one of the Loans will allow the applicable lender to recover against only the particular Property securing the particular Loan and will not trigger a default under the other Loans.
• Long-term, Fixed Rate, Amortizing Loans
Each Loan has, or is expected to have, a term of 10 years. Each Operating Trust will be required to make payments of interest only during the first five years of the term of its respective Loan, and principal and interest for the final five years of the Loan term, with principal amortizing on a 30-year schedule. Each Loan bears, or is expected to bear, interest at a fixed rate (in some cases, through the use of swap arrangements), with an average annual interest rate of 3.19% across the portfolio. Additionally, three of the four Loans contain no prepayment penalty.
• Master Lease Structure
The master lease structure used by the Operating Trusts will allow each master tenant (each, an affiliate of IPCC) to operate its respective Property on behalf of the Operating Trust and to enable actions to be taken with respect to the Property that the Operating Trust would be unable to take due to tax law-related restrictions, including, but not limited to, a restriction against re-leasing the Property. See “Summary of the Leases – Master Leases” in the Memorandum.