National Multifamily Portfolio III DST

Eastern half of the United States – Knightdale, NC, Maple Grove, MN and Shelton, CT

Beneficial Interests: $100,617,339

Offering Price: $218,042,339

  • Loan Proceeds: $117,425,000
  • Current Cash Flow: 5.00%
  • Loan-to-Offering Price Ratio: 53.85%
  • Minimum Investment[1031]: $100,000

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

East Raleigh Property, the Maple Grove Property, and the SW Connecticut Property

Built in 2009, on 17.75 acres, the East Raleigh Property consists of 304 one-, two- and three-bedroom units. Knightdale is a fast-growing neighborhood in the Raleigh-Durham-Chapel Hill metro area, with 25 percent population growth from 2010 to 2015. Comprised of three buildings providing 471 one- and two-bedroom units, the Maple Grove Property is only steps to the large Arbor Lakes retail area.

INVESTMENT HIGHLIGHTS

IPC believes that an investment in the Parent Trust offers the following benefits:
Diverse Portfolio with Value-Add Opportunity

• Portfolio dispersed across three states in the eastern half of the country
• Properties are located in affluent areas with above average household incomes, the lowest being more than $80,000 within a 1-mile radius
• Range of properties including one constructed in 2008, one constructed in 2009 and one new-build completed in 2015-2016
• Value-add potential with planned unit upgrades at the East Raleigh and SW Connecticut Properties to grow rental income
• Upgrades may include wood-style flooring, new appliance packages and new fixtures, hardware and lighting

Experienced Property Management

Inland management team with extensive experience in all aspects of acquiring, owning, managing and financing multifamily properties
• Acquired and managed more than 73,500 multifamily units throughout the United States as of 6/30/17

Long-Term, Fixed Rate,Amortizing Loans

• Each Property is or will be financed with a separate Loan with no cross-collateralization
• Bearing interest at a fixed rate or at rates that vary on a fixed schedule
• Each Loan has or will have a 10-year term (including extension periods)
• Each Operating Trust is or will be required to make payments of interest only during the first five years and principal and interest thereafter
• Principal amortizing on a fixed schedule (after year five)

Master Lease Structure

• Master Lease structure will allow Master Tenants to operate the respective Properties on behalf of the Operating Trusts
• Will enable actions to be taken that Operating Trusts would be unable to take, such as a restriction against re-leasing

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. For more information, see “Summary of the Offering” and “The Offering” in the Memorandum.

 

THE FINANCING

 Investors should note that with respect to the Loans to the Maple Grove Trust and the SW Connecticut Trust, the financing terms have not yet been finalized as of the date of the Memorandum, and remain subject to change.

These Loans are not, and are not expected to be, cross-collateralized or cross-defaulted, meaning a default under one of the Loans will allow the respective lender to recover against only the particular Property securing that Loan and will not trigger a default under any other Loan

 

PROPERTY OVERVIEW

The East Raleigh Property

Built in 2009, on 17.75 acres in Knightdale, North Carolina, the East Raleigh Property consists of 304 one-, two- and three-bedroom units. Unique unit features in select units, such as sunrooms, dining nooks and built-in desks, draw residents to this dynamic community. View at Legacy Oaks provides 546 parking spaces, including 32 attached garage spaces and 18 detached garage spaces. This apartment community offers residents close proximity to retail, entertainment and employment, including walkability to Duke Medical Plaza Knightdale, as well as expansive amenities and a serene setting.

The Maple Grove Property

Skye at Arbor Lakes is a newly constructed property at the heart of Maple Grove’s Central Park development.Comprised of three buildings providing 471 one- and two-bedroom units, the Maple Grove Property is only steps to the large Arbor Lakes retail area, which is home to over 240 businesses. A select number of the two-bedroom units have a large den that provides additional living space, almost like having a third bedroom.Residents have access to 960 parking spaces, primarily consisting of heated garage spaces, an important feature during winter in Minnesota. The Maple Grove Property’s amenities, combined with proximity to major Fortune 500 employers, help set Skye at Arbor Lakes apart from competition.

The SW Connecticut Property

Townhomes at Huntington is a 99-unit apartment community comprised of 86 townhouse-style homes and 13 garden-style apartment homes in Fairfield County, Connecticut. Constructed in 2008, the SW Connecticut Property sits on 7.1 acres with seven three- and four-story apartment buildings and one clubhouse. Residents have access to a total of 148 parking spaces, including 76 private garage spaces, 65 regular spaces and 7 handicap spaces. Townhomes at Huntington is a highly-amenitized property in Connecticut’s “Gold Coast”,running along the Long Island Sound.

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.