IPC Alternative Real Estate Income Trust Inc. – a non-traded real estate investment trust sponsored by Inland – reported having invested $411 million in real estate with 35 properties in its portfolio split into majority healthcare (30), as well as self-storage (4) and student housing (1). The company reported an aggregate net asset value of approximately $140 million at the end of September 2024, a minimal decrease in value month-over-month.
The monthly net asset value per share for its classes of common stock, as of Sept. 30, 2024, were as follows.
Class T shares had a NAV per share of $23.9205 at the end of September, compared to $23.9421 the previous month, a decline of 0.09%.
Class S, D, and I shares had a NAV per share of $24.0496, compared to $24.0584 the previous month, a decline of approximately 0.04%.
As of Oct. 15, the REIT had not sold any Class S or Class D shares. Until it sells shares of Class S and Class D common stock, the transaction price for these classes was based on NAV per share of its Class I shares as of Sept. 30.
The REIT is currently offering on a continuous basis up to $1.25 billion in shares of common stock, consisting of up to $1 billion in shares in its primary offering and up to $250 million in shares pursuant to its distribution reinvestment plan. As of Oct. 15, the company had issued and sold 172,104 shares of common stock in the primary offering for total proceeds of $4.3 million, and 191 shares of common stock pursuant to its distribution reinvestment plan for a total value of $4,688. It intends to continue selling shares in the offering on a monthly basis.
The company is focused on alternative sectors designed to deliver stable, tax-advantaged distributions to investors. It had approximately 5.8 million shares outstanding at the end of September.
Over the summer, the REIT announced that Inland Private Capital Corporation, an affiliate of the company’s sponsor, had launched a program to sponsor a series of Delaware statutory trust private placements. The series consists of DST interests with option agreements for Class D, S, T, and I operating partnership units of the REIT.
The DST program is designed for, but not limited to, prospective investors seeking to defer the recognition of gain on the sale of other real property.
In connection with the DST program, IPC Alternative Real Estate Operating Partnership LP, which the company acts as general partner, will receive a fair market value purchase option with respect to each DST. The first private placement launched on June 27, 2024, for up to $77,202,071 in DST interests.
The launch of the DST program comes on the heels of other non-traded REITs that have successfully raised significant equity via the sponsorship of captive DST programs, including JLL Income Property Trust and Ares industrial Real Estate Income Trust. Earlier this month, Brookfield Real Estate Income Trust Inc. also initiated a 1031 exchange program.
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