National Multifamily Portfolio I DST

Charlotte, North Carolina| Lakewood, Colorado| Naples, Florida| Las Vegas, Nevada

Beneficial Interests: $120,096,882

Offering Price: $244,772,917

  • Loan Proceeds: $124,676,035
  • Current Cash Flow: 5.00%
  • Loan-to-Offering Price Ratio: 50.94%
  • Minimum Investment[1031]: $100,000

National Multifamily Portfolio I DST, a newly formed Delaware statutory trust (DST), also known as the Parent Trust, and an affiliate of Inland Private Capital Corporation (IPCC), is offering (the Offering) to sell to certain qualified, accredited investors (Investors), pursuant to a Private Placement Memorandum dated September 7, 2016 (the Memorandum), 100% of the beneficial interests (Interests) in the Parent Trust.

The Charlotte, Lakewood, Naples and Vegas Property

The Parent Trust owns, or will acquire, 100% of the beneficial interests in Charlotte Northlake Multifamily DST, or the Charlotte Trust; 100% of the beneficial interests in Lakewood Multifamily DST, or the Lakewood Trust; 100% of the beneficial interests in Naples Multifamily II DST, or the Naples Trust; and 99.5% of the beneficial interests in Las Vegas Multifamily DST, or the Vegas Trust. 

INVESTMENT HIGHLIGHTS

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.

THE OFFERING

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. See “Summary of the Offering” and “The Offering” in the Memorandum.

THE FINANCING

The Operating Trusts funded, or will fund, the purchase of the Properties with a combination of cash and financing. The material terms of the loans (collectively, the Loans) are as follows. Investors should note that with respect to the Charlotte Loan, the financing terms had not yet been finalized as of the date of the Memorandum, and the interest rate has been estimated and remains subject to change.

All notes have, or will have, a 10-year term, maturing in 2026. Each Operating Trust is required to make monthly payments. For the initial 5 years of the term of each Loan, each Operating Trust is required to make monthly, interest-only payments. For the final 5 years of the term of each Loan, the respective Operating Trust will be required to make monthly payments of principal and interest, with principal amortizing on a 30-year schedule, in a fixed amount.

The Loans will not be cross-collateralized or cross-defaulted. Each Loan is or will be secured by a mortgage or deed of trust on the respective Property, and each Operating Trust will be responsible for repayment of its respective Loan. Each Loan will be nonrecourse to the Investors. Accordingly, the Investors will have no personal liability in connection with the Loans.

PROPERTY OVERVIEW

The Charlotte Property
Vanguard Northlake Apartments

Comprised of an ideal mix of one-bedroom, two-bedroom, and three-bedroom apartment homes, Vanguard Northlake provides an attractive multifamily option for renters in the area. This 204-unit, Class A multifamily residence, in a dynamic setting with an extensive amenities package, was recently built in 2015 and 2016. Vanguard Northlake has a high renter profile primarily comprised of white collar workers who make the short commute to either Uptown Charlotte or the University Research Park for work.

The Naples Property
Orchid Run Apartments

The Naples Property is comprised of five separate residential buildings situated on nearly 22 acres. With 293,244 rentable square feet, the Orchid Run Apartments have a best-in-class amenity package. There is an array of spacious one-bedroom, two-bedroom and three-bedroom floor plans to choose from, with a total of 282 apartment units. 604 parking spaces are available to residents, including 507 surface spaces, 59 attached garage spots and 38 detached garage spots. The mission-style architecture is complemented with well-maintained landscaping and decorative fountains.

The Lakewood Property
WestLink at Oak Station Apartments

The WestLink at Oak Station Apartments are located in Lakewood, Colorado, less than ten miles to the west of downtown Denver and the fifth most populous city in the State of Colorado. The residential community is comprised of seven, three-story buildings and a luxury clubhouse. With 244 rentable units on more than nine acres of land, residents have eight floor plans and a variety of garage options to choose from at the WestLink at Oak Station Apartments.

The Vegas Property
The Wyatt Apartments

Built in 2014-2015, The Wyatt Apartments is a 308-unit, garden-style apartment community that offers a well-rounded unit mix of six floor plans with one-bedroom, two-bedrooms and three-bedrooms. There are a total of 26 buildings on more than 14 acres. The two-story buildings feature stucco exteriors and pitched rooftops. 572 parking spaces are available to residents, comprised of 302 carports, six attached garages, and 35 detached garages.

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.