Inland: ALT Senior Living DST
Coming Soon
Overview
The Trust owns a senior housing community located in Ann Arbor, Michigan MSA. The property comprises 100 independent living units, 28 assisted living units, and 24 memory care units. Building amenities include an entry lobby and concierge reception area, an office area, a great room and library, a lounge area, restrooms, an activity room, a main dining room with two private dining rooms, a kitchen which serves the dining areas, a loading dock, a fitness center, an indoor swimming pool with locker rooms, beauty salon, resident storage and laundry rooms.
Key Investment Features
Structure
Delaware Statutory Trust (DST)
Investment Sponsor
Inland
Property Type(s)
Senior Living
Location(s)
MI
Occupancy
98.70%
721 Exchange / UPREIT
Required
Minimum Investment
$250,000
Investment Strategy
Some Value Add
Year 1 Yield
4.50%
In-Place Loan
No Loan; All-Cash
Avg. Remaining Lease Term
N/A
Cash Flow Forecast
Year 1
Year 2
Year 3
Year 4
4.50%
4.50%
4.50%
4.50%
Year 5
Year 6
Year 7
Year 8
4.59%
4.70%
4.82%
4.94%
Year 9
Year 10
5.07%
5.20%
Investment Highlights
Value Add: Immediate repairs for paving, curbing and parking; loading areas, docks and flatwork; landscaping and appurtenances; site amenities; exterior finishes; exterior windows; roofing systems; HVAC systems; electrical systems; vertical transportation systems; life safety and fire protection; security and other systems; interior building components; code compliance; accessibility to disabled persons; and visual microbial growth survey estimated at $490,514.
Inland: 50+ years old, $12.2B AUM, top DST sponsor, over 300 sponsored RE programs
Demand for senior housing is primarily driven by people over the age 65. According to projections provided by the United States Census Bureau, the population age 65 and older is expected to nearly double between 2020 and 2060.
Ann Arbor is home to the University of Michigan, making it a hub for numerous jobs in healthcare, technology, research, and innovation.
Advantages
Sponsor has a strong track record.
Inland is a top sponsor with long DST track record
Property is newer and located in a solid MSA supported by Univ of Michigan
Weaknesses
COVID impacted the senior housing sector due to higher mortality risks, stricter regulations, increased liability, labor shortages and publicity.
Because this is a MANDATORY UPREIT DST, the limited size and track record of Inland's REIT here is a greater concern than with other Inland DSTs.