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Offering Summary

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Inland Zero Coupon Utility DST

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Inland Zero Coupon Utility DST is an office-focused DST offering based in Birmingham, Alabama. Total offering capitalization is $168,949,386, comprising $39,361,999 in equity and $129,587,387 in debt. Projected investor cash flow begins at 5.3% in Year 1 with a full-term average of 5.67%.

Capital structure

Offering Equity$30.36M50.6% · $121,449 / unit
Offering Debt$29.64M

Offering price

$60.0M

Price / unit

$240,000

Units

250

Property age

12 yrs

Projected distribution rate

Avg 6.75%
Yr 1Term avg.
Yr 1 5.30%Term avg. 5.67%

Year-one distribution of 6.25% stepping to 7.20% by year seven.

The property

Multi-building office portfolio in Birmingham, Alabama

$154,463,808 acquisition price

Inland Zero Coupon Utility DST

office building

3525 Colonnade Parkway, 3535 Colonnade Parkway and 4201 Colonnade Parkway, Birmingham, Alabama 35243

3525 Colonnade Parkway, 3535 Colonnade Parkway and 4201 Colonnade Parkway, Birmingham, Alabama 35243

office building

$154,463,808

100.0% of portfolio

Seller
—
Property manager
Inland Private Capital Corporation
Sponsor

Inland Private Capital Corporation

Asset Type

Office building

Location

3525 Colonnade Parkway, 3535 Colonnade Parkway and 4201 Colonnade Parkway, Birmingham, Alabama 35243

Units

—

Property Age

—

Offering Price

$168,949,386

Offering Debt

$129,587,387

Offering Equity

$39,361,999

Offering LTV

76.7%

Income % (Yr. 1)

5.3%

Avg. Income (Full Term)

5.67%

Minimum Cash Investment

—

Minimum 1031 Investment

—

Strengths

  • Established institutional sponsor with $13.1B in AUM
  • 5.3% Year 1 projected income and 5.67% full-term average

Concerns

  • High 76.7% offering LTV
  • Single-sector office asset concentration