Inland Mokena Senior Living DST Overview
Inland Mokena Senior Living DST is a Delaware statutory trust offering, sponsored by an affiliate of Inland Private Capital Corporation (IPC), that gives accredited investors fractional beneficial ownership of Clarendale of Mokena, a 156-unit seniors housing community located at 21536 Wolf Road in Mokena, Illinois, a suburb roughly 30 miles southwest of downtown Chicago within the Chicago-Naperville-Elgin metropolitan statistical area. Built in 2015, the property consists of a single three-story building of approximately 95,255 leasable square feet on 11.40 acres, and delivers a full continuum of care across 60 independent living units, 56 assisted living units and 40 memory care units. As of February 20, 2026, the community was 94.23% leased to residents. The Trust acquired the property on February 25, 2026 for a purchase price of $72,000,000 and is offering up to $86,840,527 of trust interests, representing 100% of the beneficial interests in the Trust, on an all-cash basis with no permanent financing encumbering the property. Day-to-day operations are handled by Life Care Services LLC (LCS), an unaffiliated third-party operator with more than 50 years of experience that manages 120 senior living communities across 28 states and serves more than 32,000 residents; an LCS affiliate is acquiring 2.0% of the interests alongside outside investors. The property is leased to an IPC-affiliated master tenant under a 120-month master lease, a structure designed to preserve the Trust's DST tax status while enabling active operation of the community. Distributions to investors are intended to be paid monthly. The offering is structured for investors completing a Section 1031 like-kind exchange (minimum investment of $100,000) as well as for cash investors (minimum $25,000), and interests are sold only to accredited investors under Rule 506(b) of Regulation D. The offering is best suited to 1031 exchangers seeking passive, professionally managed real estate exposure to the demographically driven seniors housing sector who can accept illiquidity, single-asset concentration and no control over management in exchange for the potential for monthly income and continued tax deferral.
Highlights
Location and Market. Clarendale of Mokena sits in a suburban location along the southern edge of Mokena, Illinois, approximately 30 miles southwest of the Chicago central business district within the Chicago-Naperville-Elgin, IL-IN metropolitan statistical area, one of the largest metros in the country with a population of roughly 9.2 million. The immediate neighborhood is anchored by established retail and commercial uses, including Mariano's, Office Depot, Kohl's and a range of restaurants, banks and services, along with recreational amenities such as area parks and the Hickory Creek Preserve. The surrounding trade area features an average household income of approximately $128,243 and a median household income of $92,735, with median household income projected to rise about 12.9% over the following five years. The Property benefits from suburban access along Wolf Road near the Old Plank Road Trail, placing it within an affluent, amenity-rich residential corridor that supports demand for private-pay seniors housing serving the greater Chicago southwest suburbs.
Property Quality, Amenities and Tenancy. Completed in 2015, Clarendale of Mokena is a purpose-built, three-story seniors housing community of approximately 95,255 leasable square feet situated on 11.40 acres, offering a full continuum of care through 60 independent living, 56 assisted living and 40 memory care units. Resident amenities include a cafe, a pub, a theatre room, a computer center, a salon, a game room, a fitness studio, a private dining room, and television and activity rooms, with services scaling by care level from flexible dining and housekeeping in independent living to three daily meals, 24-hour assistance and secured memory care environments. The building features full fire-sprinkler coverage and a monitored fire alarm and emergency response system, and a third-party property condition assessment concluded the property has been well maintained and is in overall good condition. As of February 20, 2026, the community was 94.23% leased to residents, and it is operated by Life Care Services, a nationally recognized senior living operator, supporting stabilized, income-producing performance across all three care segments.
Financing and Capital Structure. The Trust is offering up to $86,840,527 of interests entirely as equity, with no permanent debt encumbering the property and a Trust Agreement that prohibits the signatory trustee from placing new financing on the asset. This unleveraged, all-cash structure removes lender covenants, refinancing risk and balloon-maturity exposure, and preserves flexibility to hold or sell the property at a time intended to maximize value. The Trust funded its $72,000,000 acquisition through a capital contribution from the IPC-affiliated depositor, and established a reserve account with an initial contribution of $4,781,000 from offering proceeds, supplemented by annual reserve funding of up to $312,000 and a minimum balance of $100,000, to address capital expenditures over the hold. In connection with the acquisition, IPC (not the Trust) obtained a $35,587,200 bridge loan from First Merchants Bank that IPC is required to repay from offering proceeds as interests are sold; no investor is allocated any portion of that bridge liability, and the property remains free of permanent financing. For a debt-encumbered 1031 exchanger, the absence of leverage may require additional cash to fully cover replacement-property value and avoid taxable boot.
Sponsor and Management. The offering is sponsored by an affiliate of Inland Private Capital Corporation (IPC), formed in 2001, which as of December 31, 2025 had sponsored 329 private placement programs and raised approximately $11 billion in equity from more than 29,000 investors. IPC is part of The Inland Real Estate Group of Companies, a Chicago-area organization with more than 50 years of real estate experience that, as of year-end 2025, had sponsored 851 programs (670 completed, including 155 Section 1031 exchange programs) and completed 19 full-cycle Section 1031 exchange programs in 2024 and 2025 alone; an affiliated acquisitions company has facilitated more than $56 billion of real estate purchases. Property operations are led by Life Care Services LLC, an experienced, unaffiliated third-party operator with more than 50 years in the sector that manages 120 senior living communities across 28 states and serves over 32,000 residents. Notably, an LCS affiliate is acquiring 2.0% of the interests in this offering, aligning the operator's economic interests with those of outside investors. Asset management is provided by an IPC affiliate for a fee of $12,000 per month ($144,000 annually) in the initial year.
Tax Treatment and Exit Optionality. Interests in the Trust are designed to qualify as replacement property for investors completing a Section 1031 like-kind exchange, allowing deferral of federal and state capital gains taxation on the sale of relinquished investment real estate; special tax counsel has provided an opinion that acquisition of an interest should be treated as a direct acquisition of real estate for Section 1031 purposes, though no IRS private letter ruling has been obtained and qualification depends on each investor's circumstances. The DST structure delivers passive, fractional ownership with intended monthly distributions and eliminates day-to-day management responsibility. On exit, the signatory trustee may pursue either a cash sale, which each investor can structure as a subsequent Section 1031 exchange to continue deferral, or a Section 721 contribution of the property to a REIT operating partnership (an UPREIT transaction) in exchange for OP units, with investors given the option to elect cash or OP units at then-current fair market value. Investors electing OP units in a 721 transaction would not be able to complete a further 1031 exchange thereafter. Tax-exempt entities such as IRAs and pension plans are not eligible to invest.
Analysis of Inland Mokena Senior Living DST
Insights
Inland Mokena Senior Living DST is best understood as a single-asset, unleveraged, operating-business real estate investment wrapped in a 1031-eligible DST, and it fits a specific investor: a 1031 exchanger who has largely paid off debt on the relinquished property, wants passive monthly income backed by a demographically supported sector, and can accept concentration and illiquidity. Because there is no permanent financing, the offering removes leverage risk but also removes the extra debt that leveraged DSTs use to help exchangers match relinquished-property value; investors carrying mortgage debt into the exchange may need to contribute additional cash to avoid taxable boot, so exchange math should be modeled carefully. The risk/return profile is driven less by classic real estate leverage and more by operating performance of a seniors housing community. Unlike a net-leased retail or industrial DST with a single credit tenant on a long lease, cash flow here depends on ongoing lease-up, resident turnover, private-pay affordability and the operator's ability to hold rate and control expenses across independent living, assisted living and memory care. The 94.23% occupancy at acquisition is a genuine strength, but seniors housing is labor-intensive and regulation-heavy, and the PPM candidly flags that seniors are increasingly delaying or forgoing moves to communities. What to watch: whether actual occupancy and revenue track the forecasted statement of cash flows; the master lease's tiered rent (2026 annualized base rent of about $1,663,246, with additional and supplemental rent tied to gross income breakpoints), which means investor distributions above base rent depend on the property clearing those breakpoints; the spread between the $86,840,527 offering and the $72,000,000 purchase price plus an 8.40% selling load and 2.50% acquisition fee, which raises the cost basis and the bar for exit appreciation; and reserve adequacy against identified immediate repairs (about $1.29 million) and long-term physical needs (about $4.03 million). Also monitor the Chicago MSA backdrop, where total population has been declining modestly even as the 80-plus cohort grows nationally, and the reliance on an IPC-affiliated master tenant capitalized by only a $787,000 demand note. Governance is typical DST: no investor control, limited trustee duties, and dependence on the sponsor for asset management and eventual disposition. The counterweight is a credible sponsor and a top-tier operator (LCS) with 2.0% co-investment, plus meaningful exit flexibility, including a cash sale that can roll into another 1031 exchange or a Section 721 UPREIT contribution for OP units (which, if elected, ends further 1031 eligibility). Compared with a stabilized net-lease DST, this offering trades a single-tenant credit lease for operating upside and operating risk; investors should size it as a concentrated, sector-specific allocation, weigh the fee load against realistic exit-cap assumptions, and confirm that projected distributions are supported by operations rather than by return of reserves or capital.
Advantages
All-cash, debt-free structure. The property carries no permanent financing, eliminating refinancing risk, balloon maturities and lender covenants, and giving the Trust flexibility to hold or sell to maximize value; no investor bears any portion of the separate bridge loan made to IPC. Stabilized, high-demand asset. Clarendale of Mokena is a purpose-built 2015 community that was 94.23% leased as of February 20, 2026, offering a full continuum of care (independent living, assisted living and memory care) in an affluent Chicago suburb, positioned to benefit from the aging U.S. population and rising life expectancy. Experienced, aligned operator. Day-to-day operations are run by Life Care Services, an unaffiliated national operator with 50-plus years of experience across 120 communities in 28 states and more than 32,000 residents; an LCS affiliate is investing in 2.0% of the interests, aligning operator incentives with investors. Institutional sponsor. IPC and the broader Inland organization bring more than 50 years of experience, 329 IPC private placement programs, roughly $11 billion of equity raised, and a record of full-cycle Section 1031 programs. Tax efficiency and passive income. Interests are structured for Section 1031 exchange eligibility with intended monthly distributions, a funded reserve account of $4,781,000, and exit optionality that includes a cash sale (eligible for a follow-on 1031 exchange) or a Section 721 UPREIT contribution.
Concerns
Illiquidity and no control. There is no public market for the interests, they are subject to transfer restrictions, and investors may not realize a return for years, if at all; investors have no control over management of the Trust or operation of the property and the trustees have limited duties and authority. Single-asset concentration. The investment is not diversified as to asset type, geographic location or tenant mix; performance depends entirely on one senior living community in one submarket. Sector-specific risk. Senior living is heavily regulated, exposes the Trust, master tenant and property manager to litigation and government proceedings, and is sensitive to the economy, the housing market, unemployment, consumer confidence and demographic shifts; seniors increasingly delay or forgo moves to communities, which can pressure occupancy, rents and cash flow. Reliance on the master tenant and residents. The Trust depends on an IPC-affiliated master tenant (capitalized by only a $787,000 demand note) for rent, and the master tenant depends on residents; any default adversely affects the Trust. Bridge loan exposure. If IPC defaults on its $35,587,200 bridge loan, the Trust would be required to record a mortgage against the property. Fees and pricing above cost. The $86,840,527 offering exceeds the $72,000,000 purchase price and includes selling commissions and expenses of 8.40%, a 2.50% acquisition fee, ongoing asset and property management fees, and a disposition fee up to 3.0%, so the property must appreciate meaningfully for investors to recover these loads. Related-party and other risks. The property was purchased as-is from an affiliate of the property manager with recourse capped at $1,000,000, reserves may prove insufficient, distributions are not guaranteed, tax treatment could change, and certain prior IPC programs have experienced material adverse developments such as tenant issues, vacancies, rent reductions and missed distribution projections.
Inland Mokena Senior Living DST — Complete Offering Data
Offering & Structure
Investment NameInland Mokena Senior Living DST
SponsorInland
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusRejected
Last Updated2026-07-13
Size & Availability
Total Offering$86,840,527
Equity$86,840,527
DebtAll-Cash
Available Equity$86,840,527 (100% of equity)
Minimum Investment$100,000
Total Load10.90%
Initial Reserves5.51%
Property
Property TypeSenior Living
StrategyCore
LocationIL
Market TierTier 1
Income & Projections
Average Yield4.66%
Projected Yields (Y1–Y10)Y1 4.50% · Y2 4.50% · Y3 4.50% · Y4 4.50% · Y5 4.60% · Y6 4.62% · Y7 4.65% · Y8 4.78% · Y9 4.90% · Y10 5.03%
Tax-Adjusted Yield6.39%
Cap Rate Equivalent7.09%
Year 1 NOI$4,324,108
Y1 Payout Ratio1.11
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period10 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income4.66% vs 5.05% market — Meets Average
Growth11.78% vs 41.07% market — Below Average
Peak5.03% 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.
