Inland ALT Senior Living II DST Overview
Inland ALT Senior Living II DST is a Delaware statutory trust sponsored by Inland Private Capital Corporation (IPC) that offers accredited investors 100% of the beneficial interests in a trust owning Jackson Creek Senior Living, a 132-unit senior living community at 16601 Jackson Creek Parkway in Monument, Colorado, within the Colorado Springs metropolitan statistical area. Built in 2017, the community sits on 6.41 acres and comprises a single three-story residential building of approximately 72,435 leasable square feet, configured as 27 independent living units, 75 assisted living units (with 80 beds) and 30 memory care units, plus a separate garage building. As of January 26, 2026 the property was 89.4% leased to residents. The trust acquired the property on January 27, 2026 for $60,800,000 against a CBRE as-is appraised value of $62,800,000, and is offering the interests without any permanent financing encumbering the property, an all-cash, debt-free structure. The maximum offering amount is $70,771,625 of equity, with a $250,000 minimum investment, sold under Rule 506(b) of Regulation D. The property is master-leased to an IPC affiliate and operated day-to-day by Dial Senior Management, an experienced third-party senior-housing operator. The offering is designed principally for Section 1031 exchange investors seeking to defer capital gains by acquiring replacement property, and it carries an FMV Option under which the sponsor's operating partnership may later require investors to exchange their interests for OP units in an ALT REIT vehicle in a transaction intended to qualify under Code Section 721. It suits accredited investors who want passive, professionally managed, debt-free exposure to needs-based senior housing, can hold for a relatively long term, and do not need near-term liquidity.
Highlights
Jackson Creek Senior Living sits in Monument, Colorado, a suburban community within the fast-growing Colorado Springs metropolitan statistical area. According to the CBRE appraisal, the eight-mile trade area around the property has a population of 83,462 that has grown roughly 10.1% annually since 2020 and is projected to keep expanding by about 1.9% per year through 2029. Household incomes are notably high for a senior-housing market: average household income is $187,207 and median household income is $155,261, with median income projected to rise another 15.3% over five years. The surrounding neighborhood blends commercial and residential development along Jackson Creek Parkway with nearby golf courses, parks, conservation areas, retail, restaurants and multiple area hospitals, an affluent, amenity-rich and healthcare-accessible setting that supports durable demand for premium private-pay senior living.
Completed in 2017, the community is a modern, three-story building on 6.41 acres that offers a full continuum of care across 132 units, 27 independent living, 75 assisted living (with 80 beds) and 30 memory care, allowing residents to age in place as their needs change. The campus totals approximately 72,435 leasable square feet and includes a separate garage building with 16 individual garages available to residents for a fee, along with 123 total parking spaces. The property was 89.4% leased as of January 26, 2026, evidencing established, stabilized resident demand rather than a lease-up story. Day-to-day operations are handled by Dial Senior Management, a developer and operator since 1999 that runs 26 senior-housing communities and more than 3,400 units across Colorado, Illinois, Iowa, Kansas, Missouri and Nebraska; a Dial affiliate is also purchasing 1.0% of the interests alongside investors, aligning operator and investor interests.
The offering is structured entirely with equity: the trust acquired the property for $60,800,000 using a cash capital contribution and is offering the interests without any permanent financing encumbering the property. With zero leverage and an effective loan-to-value of 0%, investors face no mortgage debt, no lender covenants, no refinancing exposure and no balloon-maturity or interest-rate reset risk, a meaningful differentiator versus leveraged DSTs. Total offering proceeds are $70,771,625, of which $64,296,022 (90.85%) funds the property acquisition, closing costs and reserves, including a substantial $2,597,000 initial reserve account (with a $100,000 minimum balance and up to $132,000 in annual contributions). The remaining 9.15%, or $6,475,603, covers upfront selling commissions (5.0%), the dealer fee (1.25%), the placement agent fee (1.65%) and organization and offering expenses (1.25%). Because the property is unencumbered, the trust retains flexibility to hold without lender restrictions and, absent an FMV Option exercise, to time a future sale to maximize value.
The offering is sponsored by Inland Private Capital Corporation, part of The Inland Real Estate Group, which has been active in real estate for more than 55 years. Formed in 2001, IPC had sponsored 328 private placement programs as of September 30, 2025, raising approximately $11 billion of equity from more than 28,500 investors across 947 properties totaling over 83 million square feet, including 16 senior living properties, with 399 assets sold to date. This is IPC's second dedicated senior-living DST in the series. Asset management is handled by an IPC affiliate for a fee of 0.20% of the acquisition price ($121,600 annually), while property-level operations are run by Dial Senior Management, an unaffiliated operator with more than two decades of senior-housing experience. IPC also recently appointed Matthew Fries, formerly head of investment products at Cetera Financial Group, as its chief executive officer, president and chairman, effective February 2026.
The interests are designed as replacement property for investors completing a Section 1031 exchange, allowing deferral of federal and state capital gains taxes on the sale of relinquished investment real estate. Special tax counsel has opined that an investor's acquisition of an interest should be treated as a direct acquisition of the property for Section 1031 purposes, though no IRS private letter ruling has been sought and qualification depends on each investor's specific circumstances. The offering also features an FMV Option: during defined windows tied to the 24-, 36- and 48-month anniversaries of the offering's close, the sponsor's operating partnership may require investors to exchange their interests for Class T OP units in an ALT REIT vehicle, in a transaction intended to qualify as a tax-deferred exchange under Code Section 721. This potential UPREIT exit could offer future diversification, ongoing income and estate-planning flexibility, but it is exercisable at the sponsor's option, not the investor's, and the fair market value paid may be less than the amount invested.
Analysis of Inland ALT Senior Living II DST
Insights
In portfolio terms this is a debt-free, needs-based income sleeve that behaves like a bond-proxy: a place to park 1031 proceeds in stabilized private-pay senior housing and collect a modest, unlevered coupon rather than run a levered total-return bet. The all-cash structure (0% LTV) is the whole point - it strips out the refinancing, covenant and balloon-maturity risk that has forced workouts across leveraged DSTs, and lets the trust hold through a cycle and time its exit rather than a loan maturity. The trade for that safety is yield. The asset throws off a roughly 7.4% cap-rate-equivalent, but investors see a Year-1 distribution near 4.8%, climbing toward 5.6% by the back of the ten-year hold and averaging about 5.1%; the ~2.5-point gap is where the 9.15% load, ongoing fees, reserves and the IPC master-tenant spread go. That load sits at the heavy end of the DST range, and on the benchmark screens the deal earns its keep only on income: average yield roughly meets the senior-housing peer average, while both peak yield and growth screen below it - so the investor is buying a debt-free balance sheet, not a cheap or high-upside deal. One point the marketing will not volunteer: even with no mortgage, the Year-1 payout runs slightly above property NOI (payout ratio about 1.03), so the first year's distribution leans modestly on the funded reserve rather than being fully earned by operations - ordinary for a stabilizing asset, but the headline rate is not yet self-covering.
The outcome hinges on census. At 89.4% leased the property is stabilized but not full, and senior-housing margins are acutely sensitive to occupancy, labor cost and care-revenue mix; a few hundred basis points of census slippage among affluent private-pay residents - whose ability to pay is tethered to the local housing market - would erode the operating growth those later-year 5%-plus yields assume. Watch occupancy and rent traction against the roughly 3% growth assumption. The FMV/721 option cuts both ways: it offers a possible UPREIT path to diversification and a basis step-up at death, but it is exercisable at the sponsor's discretion at the 24-, 36- and 48-month marks and at a value that could sit below cost, so the investor cedes control of both timing and price. Inland/IPC brings genuine depth (328 programs, about $11 billion raised) and a realized full-cycle record of 77 exits averaging roughly an 8% annual return and a 1.52x equity multiple over about 6.9-year holds - solid rather than spectacular, and a reminder that the ten-year hold projected here runs longer than the sponsor's own average and that some prior programs still missed projections.
Verdict: this fits a conservative, long-horizon 1031 exchanger who wants debt-free, professionally managed exposure to demographic-driven demand, treats it as one sleeve of a diversified replacement-property basket, and can live with illiquidity, single-asset/single-operator/single-market concentration and a heavy fee load. It is the wrong deal for anyone reaching for yield, wanting leverage to amplify returns, needing near-term liquidity, expecting a distribution fully covered by in-place NOI on day one, or unwilling to underwrite senior-housing operating and regulatory risk.
Advantages
This offering pairs a needs-based, largely private-pay asset class with a conservative capital structure. The property is debt-free, eliminating mortgage covenants, refinancing risk and the balloon-maturity exposure that has pressured many leveraged DSTs; the trust can therefore hold through market cycles and time a sale to maximize value. Jackson Creek Senior Living is a modern 2017-vintage community offering a full continuum of care (independent living, assisted living and memory care) in an affluent, high-growth Colorado Springs submarket where median household income exceeds $155,000 and the surrounding population has been expanding roughly 10% per year. Occupancy was already 89.4% at acquisition, so investors are buying stabilized, in-place cash flow rather than a development or lease-up bet. Operations are run by Dial Senior Management, an operator with more than 25 years of experience and over 3,400 units, and Dial is investing alongside investors by purchasing 1.0% of the interests, an alignment of interests. The purchase price of $60.8 million sits below the $62.8 million appraised value, and a meaningful $2,597,000 reserve is funded upfront to address capital needs. Forecasted distributions begin at a 4.50% annualized cash-on-cash rate and are projected to rise over the hold. The trust is sponsored by IPC, a 20-plus-year, multi-billion-dollar 1031/DST program sponsor, and the structure delivers passive, professionally managed exposure well suited to 1031 exchangers, with an optional Section 721 UPREIT exit that could provide future diversification and estate-planning benefits.
Concerns
Investors should weigh material, PPM-disclosed risks. The interests are illiquid with no public market, are subject to transfer restrictions, and investors may not realize a return for years, if at all, and could lose their entire investment. Investors have no control over the trust or the property; the trustees have limited duties and authority, and DST tax rules prevent the trust from re-leasing or actively managing, so performance depends heavily on the IPC-affiliated Master Tenant and on Dial as operator, and any default or operating shortfall directly harms investors. The investment is undiversified: a single senior-living property in one submarket, with concentrated asset-type, geographic and tenant exposure. Senior housing carries unique risks, including heavy licensure and healthcare regulation (Medicaid/Medicare-related rules, resident-rights, abuse-and-neglect and anti-kickback laws), litigation and government-proceeding exposure, and sensitivity to economic downturns, housing softness, unemployment and demographic shifts that can erode occupancy and revenue. Distributions are projections only, are not guaranteed, and the Trust Reserve Account may prove insufficient to cover capital expenditures. The fee load is significant: roughly 9.15% of the offering (about $6.48 million) goes to upfront commissions, placement, dealer and offering expenses, plus ongoing asset-management, property-management, incentive and trust fees, and a master-tenant income structure under which certain rent spreads (about $84,500 to $85,400 per year) and 25% of gross income above a supplemental breakpoint accrue to the IPC-affiliated master tenant rather than to investors. The FMV Option means investors may be forced to exchange their interests for OP units at a fair market value that could be less than the amount invested, with no investor control over timing or price. Finally, Section 1031 qualification is supported only by a should-level tax opinion rather than an IRS ruling, and IPC discloses that some prior programs underperformed projections or required foreclosure-related workouts.
Inland ALT Senior Living II DST — Complete Offering Data
Offering & Structure
Investment NameInland ALT Senior Living II DST
SponsorInland
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusRejected
Last Updated2026-07-13
Size & Availability
Total Offering$70,771,625
Equity$70,771,625
DebtAll-Cash
Available Equity$70,771,625 (100% of equity)
Minimum Investment$250,000
Total Load9.15%
Initial Reserves3.67%
Property
Property TypeSenior Living
StrategyCore
LocationCO
Market TierTier 3
Income & Projections
Average Yield5.15%
Projected Yields (Y1–Y10)Y1 4.81% · Y2 4.81% · Y3 4.84% · Y4 4.95% · Y5 5.05% · Y6 5.17% · Y7 5.28% · Y8 5.40% · Y9 5.52% · Y10 5.64%
Tax-Adjusted Yield11.65%
Cap Rate Equivalent7.41%
Year 1 NOI$3,501,263
Y1 Payout Ratio1.03
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period10 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income5.15% vs 5.05% market — Meets Average
Growth17.26% vs 41.07% market — Below Average
Peak5.64% vs 6.45% market — Below Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
