Illinois investor gets $61M for FoCo multifamily complex

FORT COLLINS — An affiliate of Inland Private Capital Corp. sold The Preserve at the Meadows for $61 million.

IPC’s affiliate is an asset manager for the firm. It sold the property for Ft. Collins Multifamily III DST, one of IPC’s 1031 investment programs, its press release said. The release said the deal brought a total return of 167%, based on original capital invested, and an average annualized return of 13%.

IPC investing often involves tax-oriented private placements and Opportunity Zone investing on deals with multiple owners. It has $9 billion in assets under management across property types in 43 states.

The buyer is JLLX The Preserve at the Meadows DST. Its formation filing on July 21 with the secretary of state shows a 333 W. Wacker Drive address in Chicago. The address is home to JLL Income Property Trust, affiliated with LaSalle Investment Management, a 40-year-old firm active in 15 countries and with $73 billion in assets under management.

JLL stands for commercial real estate firm Jones Lang LaSalle (NYSE: JLL), active in 80 countries with $17 billion in annual revenue. 

DST is a Delaware Statutory Trust, an investment vehicle for holding title to real estate, often for 1031 exchanges.

Colorado active

The complex is at 350 Riva Ridge Drive near West Horsetooth Road and South College Avenue, a half-mile walk from Trader Joe’s and less than a mile from Foothills mall.

The Preserve is 20 years old, on 12 acres. It’s 99% occupied, the seller said. A third of the apartments are one-bedroom, 60% two-bedroom, and the rest have three.

IPC bought it from the Bailey Co. in Denver for $46.1 million five years ago, at the time thought to be a record for non-student apartments in the city. In the six months prior IPC did three acquisitions of multifamily rentals in Fort Collins and Greeley totaling $119 million and north of 500 units. In 2017, it added the 140-unit Village Gardens Apartments in Fort Collins for $26.6 million, buying from JPK in Los Angeles. These were largely one- and two-bedroom unit communities and more than 95% leased.

It has previously bought Loveland layouts from McWhinney. IPC’s current Colorado apartment holdings include Miramont, Pinecone, and Village Gardens in Fort Collins, and Solaire in Brighton.

IPC has previously cited market familiarity, CSU-Fort Collins, and area employers for its local buying.

Brokers on the deal included three Walker & Dunlop (NYSE: WD) directors hired from CBRE’s Denver office in June to open WD’s Denver and Mountain West multifamily push, a brokerage press release said.

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