Chicagoland Supermarket Portfolio
This is a sample of a Delaware Statutory Trust offering, drawn from a past offering that is already fully subscribed and shown here for illustration. DSTs are illiquid private placements offered under Reg D to accredited investors only. The figures below are sourced from the sponsor’s Private Placement Memorandum. Year-one cash-flow, cap-rate, and DSCR figures are projections, not guarantees. Loss of principal is possible.
About this offering
Inland's Chicagoland Supermarket Portfolio is an all-cash investment into three Jewel-Osco supermarkets in the Chicago MSA. The sponsor intends to raise capital all-cash, then refinance the properties and return up to 70% of the original invested capital to investors tax-free.
Key metrics
- Year 1 Cash Flow
- 5.00%
- Year 1 Cap Rate
- 5.28%
- Investor Purchase Price
- $39.77M
- Year 1 DSCR
- —
- Hold Period DSCR
- —
Debt structure
- Loan Amount
- —
- Lender
- —
- Program
- —
- Interest Rate
- —
- LTV
- 0.00%
- Term
- —
- Interest Only
- —
- Amortization
- —
Specifications
- Occupancy
- 100.00%
Principal risks
- R01The cap rate on this investment is low (5.28%).
- R02The tenant, Jewel-Osco, has a right of first refusal on the properties. This could hinder a potential sale, may lead buyers not to make an offer, and may slow the sales process during negotiations.
- R03The tenant is not investment grade. The lease is guaranteed by Albertsons, which carries a Ba2 rating from Moody's, also non-investment grade.
- R04There is no master lease on the investment. In a DST, re-leasing is not allowed, so a master tenant is necessary should a tenant choose to vacate.
- R05Inland has proposed a cash-out refinance structure for this investment. Although not guaranteed, should Inland refinance and return capital, the IRS could disallow an investor's exchange, opening investors to significant risk of audit and IRS intervention.
Property imagery
Inland
According to the sponsor's website: "The Inland Real Estate Group of Companies, Inc. (“Inland”), is an industry leader and one of the nation's largest commercial real estate and finance organizations. As a business incubator, we specialize in creating, developing and supporting Inland member companies that provide commercial real estate-related services and alternative investment funds, including limited partnerships, institutional funds and non-listed and listed REITs."
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