Inland Private Capital Corporation (IPC) experienced tremendous growth in 2018. Historically, real estate has been a resilient asset class against the backdrop of market volatility and rising inflation, and this held true in 2018. On the political front, The Tax Cuts and Jobs Act (TCJA) preserved section 1031 like-kind exchange which allowed investment property owners to continue to defer taxes using 1031 exchanges.
Raised more than $749 million in investor capital, 24% growth over 2017 and 43% growth over 2016.
Brought 14 offerings to market, representing a total offering price of more than $1.6 billion, with a focus on larger, multi-asset offerings to accommodate demand among high net-worth investors, while integrating diversification and cost efficiencies.
Grew Assets Under Management (AUM) to $7.3 billion, a national footprint spanning 43 states and various sectors.
Further diversified AUM by investing in the hospitality sector in addition to multifamily and healthcare related assets, and took steps to further increase our self-storage investment activity.
Successfully expanded two existing credit facilities, allowing an increase in acquisition/inventory capacity and funding future plans for growth and offering diversity.
IPC’s active asset management strategy aims to sell properties at the optimal time to produce greater return potential. We closed $148 million in sales in 2018 generating more than 8% weighted Average Rate of Return (ARR).*
We are also heavily invested in the “back office” of our business by increasing the size of our asset management team to expand our closing capacity and to provide sophisticated investor and advisor reporting – all of which demonstrate our unwavering commitment to providing best-in-class service to our investors and financial advisors.
In 2019, we are excited to explore bringing new products to market, that may include non-1031 Reg D products and Qualified Opportunity Zones (QOZ) funds. Created by the TCJA to spur economic development, QOZs are economically-challenged communities where new investments, under certain conditions, may be eligible for preferential tax treatment. Additionally, the multifamily sector will continue to be a strong acquisition focus, along with opportunities in self-storage, healthcare and hospitality.
The entire IPC team looks forward to a great year ahead and values the support of our partners.