Dave Bulger
Vice President
O (855) 378-3443|C (561) 715-3235
18 Formero Street, Rancho Mission Viejo, CA 92694
Investment underwriting report
Complete offering, sponsor, fee and comparative analysis
Prepared
August 26, 2026
Offering summary
Inland Zero Coupon Utility DST is a Delaware Statutory Trust offering sponsored by Inland Private Capital Corporation. The offering is backed by an office building portfolio located at 3525, 3535, and 4201 Colonnade Parkway in Birmingham, Alabama. The total offering price is $168,949,386, comprising $39,361,999 in equity and $129,587,387 in debt financing. Financing carries a fixed interest rate of 5.784% with an offering loan-to-value ratio of 76.7%. The property was acquired for $154,463,808 at an acquisition cap rate of 7.25%, syndicated at a 5.79% cap rate. Projected cash distributions are 5.3% in Year 1 with a full-term average projected income of 5.67%.
0.0% of the offering is closed
$39,361,999 still available
$39,361,999
$0
0.0% of offering$0
Pending subscription$39,361,999
Open for subscriptionThe sponsor is raising $39,361,999 in offering equity alongside $129,587,387 in debt financing to reach the total offering price of $168,949,386. The equity raise supports the purchase, front-end costs, dealer fees of $492,025, placement agent fees of $649,473, and organizational reserves of $500,000.
Sector
Office
Investment Category
DST
Projected First Year Cashflow
5.3%
Avg. 5.67% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$168,949,386
Offering Debt
$129,587,387
5.784%
LTV
76.7%
On acquisition price
Units / Tenants
—
3525 Colonnade Parkway, 3535 Colonnade Parkway and 4201 Colonnade Parkway, Birmingham, Alabama 35243
Property Age
—
The offering encompasses an office property located on Colonnade Parkway in Birmingham, Alabama, acquired for $154,463,808. Total offering capitalization is $168,949,386, supported by $129,587,387 in fixed-rate debt at 5.784% and $39,361,999 in offering equity. The acquisition cap rate of 7.25% syndicates down to an initial yield of 5.79%, with Year 1 cash flow projected at 5.3%.
Established Sponsor Track Record
$13,100,000,000 AUMInland brings more than 55 years of enterprise real estate experience and manages $13.1B in assets.
Fixed-Rate Debt Structure
5.784% FixedThe $129,587,387 debt carries a fixed interest rate of 5.784%, mitigating interest rate fluctuation risk.
Favorable Acquisition Cap Rate
7.25% Entry CapThe property was acquired at a 7.25% acquisition cap rate, yielding a 5.79% syndicated cap rate.
High Leverage Ratio
76.7% LTVDebt of $129,587,387 accounts for 76.7% of total capitalization, limiting structural cushion.
Substantial Acquisition Fee
$8,447,469 FeeThe sponsor collects an acquisition fee of $8,447,469 upfront, impacting overall equity efficiency.
Office Sector Focus
Office PropertySingle-sector exposure to office real estate located along Colonnade Parkway in Birmingham, Alabama.
The offering is structured by Inland Private Capital Corporation, an established sponsor managing $13,100,000,000 in assets with more than 55 years of enterprise real estate experience. The debt structure is fixed at 5.784%, insulating the master lease structure from interest rate volatility. In addition, the acquisition cap rate of 7.25% provides an initial operational yield baseline prior to syndication costs.
Offering Equity
23.3% of offering
Offering Debt
76.7% LTV on acq.
Acquisition Cost
92.7% of offering
Offering Expenses
2.0% of offering
Reserves
0.3% of offering
Unallocated / other uses
5.0% of offering
Total Offering
$168.95M
Equity $39.36M + debt $129.59M
Acquisition Cost
$156.70M
92.7% of offering to the property
Total Fees & Expenses
$3.31M
1.96% of offering
Reserves
$500K
0.3% of offering
Total capitalization of $168,949,386 is funded via $129,587,387 in debt proceeds and $39,361,999 in syndicated equity. Uses of proceeds include the $154,463,808 property acquisition price, an $8,447,469 acquisition fee, $3,306,408 in front-end offering and transaction expenses, and $500,000 allocated to reserves.
Tone reflects relative strength, not a rating
Leverage Exposure
Elevated debt profileWith an offering LTV of 76.7% on $129,587,387 of debt, the trust has higher leverage relative to typical conservative DST structures.
Upfront Fee Load
Significant sponsor feesThe transaction includes an acquisition fee of $8,447,469 alongside $3,306,408 in total offering expenses.
Asset Sector Risk
Office property profileThe collateral consists solely of office buildings located in Birmingham, AL, subject to general office market dynamics.
Debt Terms
Fixed interest rateThe loan carries a fixed interest rate of 5.784%, eliminating variable benchmark rate exposure.
The offering carries an elevated loan-to-value ratio of 76.7%, creating substantial debt service obligations relative to total capitalization. Additionally, the asset is focused in the office sector, which may be exposed to broader corporate leasing headwinds. The transaction also features significant front-end compensation, including an $8,447,469 acquisition fee paid to the sponsor.
Syndicated Cap Rate
5.79%
NOI ÷ offering price
Upfront Load on Offering
1.96%
Total fees ÷ offering price
Load on Equity
8.40%
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
109.4%
Offering price ÷ acquisition price
Price per Unit
—
Offering price ÷ — units
Distribution rates as extracted from the offering materials.
The transaction includes an acquisition price of $154,463,808 and an offering price of $168,949,386, representing an appraisal-to-offering ratio of 95.88%. Total acquisition fees of $8,447,469 and total offering expenses of $3,306,408 create an initial load on the equity raise of $39,361,999. Cap rate compression moves from an entry yield of 7.25% to a syndicated cap rate of 5.79%.
Sponsor
Inland Private Capital Corporation has an operating history extending over 55 years in real estate development, syndication, and management. The sponsor oversees a national portfolio comprising $13,100,000,000 in assets under management across major real estate asset classes.
—
Properties owned or managed
$13,100,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
Office
Stated strategy
Inland Private Capital Corporation serves as the sponsor, backed by over 55 years of organizational operating history across various commercial real estate entities. The firm oversees $13,100,000,000 in assets under management across multiple asset classes. Sponsor compensation includes an acquisition fee of $8,447,469, an annual trust administration fee of $120, and a 1.0% refinancing fee on future loan balance refinancings.
More than 55 years of commercial real estate operating history
Substantial institutional scale with $13.1B in assets under management
Extensive experience structuring Delaware Statutory Trusts
Substantial upfront acquisition fee of $8,447,469
Imposes a 1.0% fee on future loan refinancings
The property
$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
$154,463,808
100.0% of portfolio
Financing consists of a $39,215,000 fixed-rate loan at 5.01% interest with a 46.93% LTV and a 2.06x debt service coverage ratio.
$129,587,387
—
5.784%
Fixed
—
—
76.7%
76.7%
The asset is acquired for $79,352,943 at a 5% acquisition cap rate, with total acquisition cost reported at $73,086,065 excluding certain capitalized reserves.
146 bps of spread between acquisition and syndicated cap rate.
$154,463,808
$168,949,386
—
—
—
—
7.25%
5.79%
—
95.88%
—
Uses of capital include the property purchase, $4,212,057 in improvement/lumped reserves, $1,116,013 in carry costs, and $3,392,775 in total offering expenses.
Total Fees & Expenses
$3,306,408
% of equity
8.40%
% of offering
1.96%
$500,000 including reserves (0.30% of offering)
Total fees & expenses
$3.31M
1.96% of offering
Offering expenses
$3.31M
1.96% of offering
Reserves held
$500K
0.30% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $8,447,469 | 21.46% | 5.00% |
| Title & Recording Costs | $1,351,427 | 3.43% | 0.80% |
| Reserves (Loan Proceeds) | $0 | 0.00% | 0.00% |
| Reserves (Lender Required) | $0 | 0.00% | 0.00% |
| Reserves (Master Tenant) | $500,000 | 1.27% | 0.30% |
| Reserves (Lumped) | $500,000 | 1.27% | 0.30% |
| Reserves (Improvements) | $500,000 | 1.27% | 0.30% |
| Loan & Lender Expenses | $88,130 | 0.22% | 0.05% |
| Finance Expenses | $88,130 | 0.22% | 0.05% |
| Total Acquisition Cost | $156,695,509 | 398.09% | 92.75% |
| Total Acq. Cost (Reserves) | $165,642,978 | 420.82% | 98.04% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Dealer Fee | $492,025 | 1.25% | 0.29% |
| Placement Agent Fee | $649,473 | 1.65% | 0.38% |
| O&O Expenses | $196,810 | 0.50% | 0.12% |
| Third Party DD | $30,057 | 0.08% | 0.02% |
| Total Offering Expenses | $3,306,408 | 8.40% | 1.96% |
| Total Fees / Expenses | $3,306,408 | 8.40% | 1.96% |
| Total Upfront Fees (Reserves) | $500,000 | 1.27% | 0.30% |
Disclosed fees include $510,025 in placement agent fees, $443,500 in BD marketing allowance, $221,750 in BD DD allowance, and $286,000 in O&O expenses.
$8,447,469
21.46%
$492,025
1.25%
$3,306,408
2.14%
The investment targets an average full-term income yield of 5.19% underpinned by master tenant and lender escrows totaling over $744,700.
$120
$2,025
A
of fee equal to 1.0% of the principal amount of the new loan
An
annual management fee equal to $120, payable from the Reserve Account, in an amount equal to $10 per month
Standing
35 of 57
Blended percentile across 10 extracted metrics.
Pricing
84th pct
Leverage
8th pct
Cost
60th pct
Ongoing
0th pct
Structure
6th pct
Pricing
Leverage
Cost
Ongoing
Structure
Bar spans the cohort minimum (Min) to maximum (Max), labelled beneath with the cohort median (Med). Shaded band is the 25th–75th percentile, the tick is the median, and the dot is this offering.
Acquisition cap rate
94th pct7.25%median 5.50%
Year 1 distribution
95th pct5.30%median 4.51%
Acquisition LTV
5th pct76.70%median 46.50%
Interest rate
16th pct5.78%median 5.11%
Total upfront load
100th pct1.96%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 7.25% | 5.50% | 5.00% – 6.00% | +1.75% | 94th |
| Syndicated cap ratePricing | 5.79% | 5.49% | 4.84% – 5.83% | +0.30% | 62nd |
| Year 1 distributionPricing | 5.30% | 4.51% | 4.40% – 5.00% | +0.79% | 95th |
| Avg. distribution (term)Pricing | 5.67% | 5.05% | 4.75% – 5.31% | +0.62% | 84th |
| Acquisition LTVLeverage | 76.70% | 46.50% | 18.89% – 49.80% | +30.20% | 5th |
| Offering LTVLeverage | 76.70% | 46.09% | 2.67% – 49.53% | +30.61% | 2nd |
| Interest rateLeverage | 5.78% | 5.11% | 5.00% – 5.35% | +0.67% | 16th |
| Total upfront loadCost | 1.96% | 7.50% | 5.00% – 9.50% | −5.54% | 100th |
| ReservesCost | 1.27% | 5.54% | 1.76% – 9.03% | −4.27% | 19th |
| Equity share of capitalStructure | 23.30% | 100.00% | 52.93% – 100.00% | −76.70% | 6th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| MCG Gainesville FL BTR DST | Madison Capital Group | — | — | 1.74x | — | 10 yrs | 88% |
| BREX Briggs MF DST | Brookfield Real Estate Exchange LLC | — | — | — | 3.72% | — | 77% |
| MDRR XXV Tesla DST 1 | MDRR Sponsor TRS, LLC | 6.00% | 47.32% | 2.32x | 3.69% | 5 yrs | 75% |
| CF Biscayne Multifamily DST | Cantor Fitzgerald Investors, LLC | — | 52.30% | — | 3.90% | — | 75% |
| BREX Net Lease Data Center I DST | Brookfield Real Estate Exchange LLC | — | — | — | 4.51% | 2 yrs | 74% |
| NexPoint Life Sciences III DST | NexPoint Real Estate Advisors IV, L.P. | 5.83% | 50.52% | 1.03x | 4.63% | 9 yrs | 73% |
| Net-Leased Portfolio 76 DST | ExchangeRight Real Estate, LLC | — | 43.32% | 1.35x | 4.08% | 14.7 yrs | 72% |
| BR Amira DST | Bluerock Value Exchange | 5.64% | 46.17% | 1.80x | 5.06% | 10 yrs | 70% |
Match score is a normalised distance across the full extracted metric set — asset type, pricing, leverage, cost and structure all weighted equally.
Figures on this page are generated from automated extraction of offering documents and may contain errors or omissions. Verify every metric against the sponsor's offering materials before relying on it for an investment decision.