Inland Private Capital's ALT REIT: 88% Owned by Former DST Investors, $14.8M Raised in Three Years
Quick Answer
IPC Alternative Real Estate Income Trust ("ALT REIT", CIK 1959961) is the non-traded REIT that Inland Private Capital uses to absorb its DSTs through Section 721 exchanges, and on September 25, 2026 it filed a new S-11 to keep selling up to $1.25 billion of shares. Its own numbers show what a buyer or a DST holder would be joining. At August 31, 2026 the REIT and its operating partnership had a combined NAV of $140.5 million, and $123.3 million of it (87.8%) belonged to Class A units held by investors from eight medical-office DSTs rolled up in 2021; the public shareholders' classes add up to $17.2 million. In almost three years its public offering sold 612,168 shares for $14.8 million (to June 30, 2026). The portfolio carries $270.0 million of mortgage debt against $417.0 million of real estate, NAV per Class I share is $23.35, down from $24.89 in August 2023, and the gross distribution is $0.1042 a month (about 5.4% a year on NAV, our arithmetic).
Key Takeaways
- Most of this REIT is not the REIT. The company owned about 10.9% of its operating partnership at June 30, 2026; third parties held 89.1%. Of the $140.5 million August NAV, $123.3 million is Class A units issued in the September 2021 roll-up of eight Inland healthcare DSTs.
- The public offering has barely started. Declared effective September 28, 2023 for $1.25 billion, it had sold 612,168 shares for $14.8 million by June 30, 2026, about 1.2% of the registration. The new S-11 registers another $1.25 billion.
- The balance sheet grew by consolidation, not by fundraising. Total assets went from $11.3 million at December 31, 2025 to $444.0 million at June 30, 2026 because the company began consolidating the operating partnership on May 1, 2026.
- Leverage is high for a NAV REIT. Mortgage debt was $270.0 million at June 30, 2026; in the August NAV, $270.0 million of debt sits against $417.0 million of real estate. The company's own leverage ratio was 60.9%, against a target of about 60%.
- The sponsor lends to it. A revolving line from Inland Private Capital had $14 million drawn at June 30; on August 6, 2026 the limit was raised from $22.5 million to $40.0 million at 4.25% and the maturity moved to November 30, 2027.
- The DST pipeline is the plan. Inland Private Capital has sponsored three DSTs (one student housing, two senior living, over $259.5 million of property) in which the operating partnership holds a fair market value option to exchange investors into OP units at the 24th, 36th and 48th month.
CSV · 111 rows
IPC Alternative Real Estate Income Trust (ALT REIT): NAV, ownership, debt and offering, 2023-2026
111 rows from the September 25, 2026 S-11, the September 15, 2026 prospectus supplement, the June 30, 2026 10-Q, the 2025 10-K and the 2023 draft registration: monthly NAV per Class I share and Class A unit, the August 2026 NAV by component and class, offering proceeds, every mortgage loan, the sponsor's credit line, tenants, fees and repurchase limits; one accession number per row.
What ALT REIT is, and why a DST investor meets it
Inland Private Capital (IPC) is one of the largest sponsors of Delaware statutory trusts, the fractional-ownership vehicles that 1031 exchange investors buy into after selling a property. ALT REIT is the exit Inland built for those DSTs: a non-traded REIT with an UPREIT structure that can take a DST's property into its operating partnership and hand the DST's investors operating partnership units instead, tax-deferred under Section 721. It invests in "alternative" property types: medical outpatient buildings, self-storage and student housing, with senior living in the pipeline.
It started as a private fund. The entity was formed on June 17, 2021 as Inland Private Capital Alternative Assets Fund, LLC, and on September 2, 2021 its operating partnership acquired 30 medical outpatient properties through a roll-up of eight Inland DSTs (Texas Healthcare Portfolio, Healthcare Portfolio II, III, IV and VII, Indianapolis Medical Office, Arizona Healthcare and Arizona Healthcare II). Those DSTs' investors received operating partnership units, now called Class A units. The company converted to a Maryland corporation on June 12, 2023 and its public offering was declared effective on September 28, 2023.
If you are one of those Class A holders, or you own one of the newer IPC DSTs that carry an option into this REIT, or an advisor has offered you its shares, the rest of this page is the part of the filings that matters to you.
Who owns what: the August 31, 2026 NAV
The REIT's monthly NAV is reported for the company and the operating partnership together. This is how it splits.
| Class | Shares / units (thousands) | NAV | NAV per share / unit | Share of total NAV |
|---|---|---|---|---|
| Class A units (2021 DST roll-up) | 5,204 | $123.3M | $23.6863 | 87.8% |
| Class I shares/units | 487 | $11.4M | $23.3520 | 8.1% |
| Class T shares/units | 164 | $3.8M | $23.4153 | 2.7% |
| Class X-1 shares/units | 53 | $1.2M | $23.2727 | 0.9% |
| Class D shares/units | 32 | $0.7M | $23.3851 | 0.5% |
| Total | 5,940 | $140.5M | 100% |
Source: prospectus supplement of September 15, 2026 (accession 0001193125-26-391805). Share of NAV is our arithmetic.
Two things follow. First, a new investor buying Class T, S, D or I shares today is buying into a company that owned about 10.9% of the operating partnership at June 30, 2026 (10-Q); the filing says that share "will grow" as offering proceeds are contributed. Second, the Class A holders are the fund's real owners, and they have been leaving slowly: 5,815,959 Class A units were outstanding after a unit split on July 31, 2023, and about 5.2 million at August 31, 2026, roughly 10.5% fewer (our arithmetic from rounded figures). In the first half of 2026 Class A holders asked to redeem 134,978 units, about $3.2 million, and the company accepted all of it, in cash.
The Class A units pay a lower management fee (0.50% of NAV a year, against 1.25% for the public classes), which is why their NAV per unit is slightly higher.
The public offering, three years in
| Class T | Class D | Class I | Total | |
|---|---|---|---|---|
| Shares sold in the public offering | 204,138 | 31,294 | 376,736 | 612,168 |
| Gross proceeds, primary offering | $4.87M | $0.72M | $8.92M | $14.51M |
| Total with reinvested distributions | $4.98M | $0.75M | $9.08M | $14.80M |
Source: Form 10-Q for the quarter ended June 30, 2026, use of proceeds, accession 0001959961-26-000013. No Class S shares had been sold.
A continuous offering can run three years under Rule 415 before it needs a new registration statement, and the prospectus says the company intends to keep offering shares "by filing a new registration statement prior to the end of the three-year period." The September 25, 2026 S-11 (filing) is that filing: up to $1.0 billion in the primary offering and $250 million through the distribution reinvestment plan, in Classes T, S, D and I. Against the first registration, the company has raised about 1.2% of what it registered (our arithmetic). Since 2025 it has also sold Class I, X-1 and X-2 shares privately to accredited investors under Regulation D.
What the operating partnership owes
The June 30, 2026 balance sheet is the first one with the operating partnership consolidated: total assets of $444.0 million, against $11.3 million at December 31, 2025. The debt that came with it:
| Loan | Balance at June 30, 2026 | Rate | Matures |
|---|---|---|---|
| CONA mortgage loan (Capital One) | $95.0M | 4.99% (with swaps) | Oct 29, 2027 |
| BMO mortgage loan | $122.7M | 4.95% (with swaps) | Sept 30, 2028 |
| Parkway UL mortgage loan | $27.8M | 5.94% | March 28, 2029 |
| Parkway Storage mortgage loan | $24.6M | 5.80% | April 25, 2029 |
| Total mortgage debt | $270.0M | ||
| Revolving line from Inland Private Capital (related party) | $14.0M drawn | 4.25% | Nov 30, 2027 (after the Aug 6, 2026 amendment) |
Sources: Form 10-Q, note 6, accession 0001959961-26-000013; Form S-11, accession 0001193125-26-402468.
In the August NAV, real estate is valued at $417.0 million and debt at $270.0 million. Debt is therefore about 65% of property value on that basis (our arithmetic; the company's own ratio, which nets cash and uses the greater of fair value and cost, was 60.9% at June 30 against a target of about 60%). The practical meaning for a unitholder: a 10% fall in the appraised value of the properties would take about $41.7 million, or 30%, off NAV (our arithmetic, all else equal). The appraisals behind the August NAV use a 7.53% discount rate and 6.32% exit cap rate for healthcare, 8.42% and 6.92% for self-storage, and 8.00% and 6.75% for student housing.
The first maturity is the $95.0 million CONA loan in October 2027. The sponsor's line was also enlarged and extended in August. Neither is a problem in the filings today; both are what the NAV depends on.
What it owns and who pays the rent
At June 30, 2026: 30 medical outpatient properties (746,601 square feet, 97.7% leased), four self-storage properties (88.8% leased) and one student housing property with 406 beds (86.7% leased), in 12 states. Two more self-storage properties were bought on September 17, 2026. In the first half of 2026, medical outpatient produced 74.3% of revenue, student housing 14.2% and self-storage 11.5%.
The medical side is concentrated. Ironwood Cancer & Research Centers, an oncology practice in the Phoenix area, has 8 leases and 23.9% of healthcare base rent; Memorial Hermann Health System has 15.2%. Three tenants each exceed 10% of healthcare rent or space, per the S-11. The weighted-average remaining lease term on the healthcare portfolio was about 7.2 years.
Those 30 buildings are the 2021 roll-up properties, and they come with a constraint: the operating partnership agreed until September 2028 to indemnify the former DST investors against the tax consequences of a taxable sale of those properties. That protects the Class A holders and limits what the REIT can sell before then.
Fees and the exit
| Item | Terms (S-11 of Sept 25, 2026) |
|---|---|
| Management fee | 1.25% of NAV a year (Classes T, S, D, I); 1.00% (X-1); 0.75% (X-2); 0.50% (Class A units) |
| Performance participation | 12.5% of total return above a 5% hurdle, with high-water mark and catch-up; the sponsor's affiliate waived it for fiscal 2026 on Aug 31, 2026 after accruing $0.9M at June 30 |
| Upfront commissions | Class T up to 3.0% + 0.5% dealer manager fee; Class S up to 3.5%; Class D up to 1.5%; Class I none |
| Ongoing distribution fee | 0.85% a year (T and S); 0.25% (D); none (I) |
| Share repurchases | Monthly, capped at 2% of aggregate NAV a month and 5% a quarter; 5% early repurchase deduction on shares held under a year; the board may modify or suspend the plan |
| OP unit redemptions | After two years, holders may ask the operating partnership to redeem units for cash or shares, at the company's discretion |
The distribution has been $0.1042 per share a month, gross ($0.6252 in the first half of 2026, per the 10-Q), about 5.4% a year on the $23.35 Class I NAV (our arithmetic), less distribution fees on Classes T and D. NAV per Class I share has moved from $24.8858 in August 2023 to $23.0883 at December 2025 and $23.3520 at August 2026 (−6.2% over three years); Class A units from $24.9014 to $23.6863 (−4.9%).
If you own an IPC DST with an option into this REIT
Since June 27, 2024 Inland Private Capital has run a "DST Program" in which each new DST gives ALT REIT's operating partnership a fair market value purchase option: "the option, but not the obligation," to require the DST's investors to exchange their interests for Class T, S, D or I operating partnership units (or, in limited cases, cash), exercisable in three three-month windows beginning 24, 36 and 48 months after the DST's final closing. As of the S-11, three such DSTs exist, owning one student housing property and two senior living facilities with a combined purchase price of over $259.5 million. That is more than the $140.5 million of NAV the whole REIT reports today, which is why the exercise of those options, if it comes, would reshape the REIT more than any year of its public offering has.
What that means in practice, from the filings:
- The timing is the REIT's, not yours. Our survey of 14 REITs running DST programs found the same one-sided wording across sponsors.
- After the exchange, your exit is the REIT's. You would hold operating partnership units whose liquidity depends on the unit redemption terms and the REIT's cash, in a REIT whose public offering has raised $14.8 million in three years and which accepted every Class A redemption request in the first half of 2026 and paid it in cash.
- The price is an appraisal on both sides. The sponsor's affiliate advises the REIT and sponsored the DST. The August 2026 NAV assumptions above are the ones the REIT uses today.
- Fees change. A DST investor who becomes a Class I unitholder pays the 1.25% management fee and is inside the 12.5% performance participation (waived for 2026); the 2021 roll-up holders got Class A units at 0.50%.
For the fees you paid to get into the DST in the first place, see our analysis of 141 DST Form D filings.
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All figures are from the filings cited, read on EDGAR on September 26, 2026. Percentages of NAV, the change in Class A units, debt as a share of property value, the NAV sensitivity and the distribution yield are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.
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