Inland Self-Storage Portfolio XXII DST Overview
Inland Self-Storage Portfolio XXII DST is a Delaware statutory trust sponsored by an affiliate of Inland Private Capital Corporation (IPC) that offers accredited investors 100% of the beneficial interests in a seven-property, institutional-quality self-storage portfolio. The Trust owns the land and improvements at seven facilities located across Florida, North Carolina, and Tennessee: Fernandina Beach, Kissimmee, Lady Lake, Miami, and Pompano Beach, Florida; Greensboro, North Carolina; and Springfield, Tennessee. In the aggregate the portfolio contains approximately 4,880 storage units and 414 rentable parking spaces across roughly 568,000 square feet of leasable area, blending climate-controlled and non-climate-controlled units. The Trust acquired the properties on December 15, 2025 for an aggregate purchase price of $96,750,000 and operates them under the established Devon self-storage brand. As of December 22, 2025, the portfolio's average physical occupancy was approximately 89%. The offering is structured to raise a Maximum Offering Amount of $115,869,677 of DST interests on an all-cash, debt-free basis: the Trust Agreement prohibits the signatory trustee from placing any permanent financing on the properties, so investors take on no mortgage leverage or balloon-refinance risk. The properties are net leased to an IPC-affiliated master tenant under a master lease and managed day-to-day by Devon, one of the largest privately owned national self-storage operators. Interests are sold under Rule 506(b) of Regulation D to accredited investors, with a minimum purchase of $100,000 for Section 1031 exchange investors and $25,000 for cash investors. The offering is designed for 1031 exchangers and other accredited investors seeking passive, professionally managed exposure to self-storage real estate, current income potential, and the tax-deferral benefits of the DST structure, who can accept illiquidity and have no need for near-term access to their capital.
Highlights
The portfolio is geographically diversified across three states and several distinct sub-markets, with a concentration in high-growth Sun Belt locations. Five of the seven facilities are in Florida - Fernandina Beach, Kissimmee, Lady Lake, Miami, and Pompano Beach - which together represent roughly 78% of the aggregate purchase price, complemented by assets in Greensboro, North Carolina (an established Piedmont Triad market) and Springfield, Tennessee (within the greater Nashville region). These markets benefit from population in-migration, household formation, and the relocation and downsizing demographic trends that drive self-storage demand, with roughly one in five Americans turning to self-storage when home space runs short. The Miami and Pompano Beach assets occupy dense, supply-constrained South Florida infill locations, while the Lady Lake property serves one of the fastest-growing retirement corridors in the country.
The seven facilities comprise approximately 4,880 storage units and 414 rentable parking spaces across roughly 568,289 square feet of leasable area, operated under the established Devon self-storage brand. The portfolio blends climate-controlled and non-climate-controlled inventory - all units at Lady Lake are climate-controlled, and Fernandina Beach, Greensboro, Pompano Beach, and Springfield offer a combination of both - allowing the operator to serve multiple price points and tenant needs. Several properties also include income-producing commercial units (approximately 9,936 rentable square feet at Fernandina Beach, 8,171 at Greensboro, and 3,100 at Kissimmee). As of December 22, 2025, average physical occupancy was approximately 89%, and the assets benefit from Devon's technology-enabled platform, including online unit reservations, automated bill payment, managed lead tracking, and call-center support. The short-term, month-to-month nature of storage leases allows rents to be repriced frequently in response to market conditions.
A defining feature of this offering is that it is structured entirely without permanent debt. The Trust acquired the portfolio for $96,750,000 using a cash capital contribution from the depositor, and the Trust Agreement expressly prohibits the signatory trustee from encumbering the properties with new financing. As a result, investors bear no mortgage-level leverage, no balloon-maturity or refinancing risk, and no lender cash-management or foreclosure exposure - a meaningful risk reducer relative to leveraged DSTs. A short-term bridge loan of $79,528,500 obtained by the depositor from Parkway Bank and Trust Company (a six-month term maturing June 15, 2026) funds the acquisition at the depositor level and is repaid out of offering proceeds as interests are sold; no investor is allocated any portion of that bridge liability. The Maximum Offering Amount is $115,869,677, and the Trust funds an initial reserve of $5,686,280 for capital expenditures and unanticipated costs.
The offering is sponsored by an affiliate of Inland Private Capital Corporation (IPC), a leading sponsor of 1031-eligible DST and private placement programs. As of September 30, 2025, IPC had sponsored 328 private placement programs and raised approximately $11 billion in equity from more than 28,500 investors. IPC is a subsidiary of Inland Real Estate Investment Corporation and part of The Inland Real Estate Group of Companies, one of the nation's largest commercial real estate and finance organizations, which has been creating and supporting real estate-related companies for more than 55 years. Day-to-day operations are handled by Devon, an IPC affiliate and one of the largest privately owned national self-storage developers and operators, which as of the memorandum date operated 207 storage properties across 31 states representing more than $1.8 billion in aggregate market value. This vertically integrated sponsor-operator relationship pairs institutional asset management with storage-specific operating expertise.
The DST is designed to qualify as replacement property for a Section 1031 exchange, allowing investors to defer capital gains and depreciation-recapture taxes by exchanging relinquished real estate into fractional beneficial interests in the Trust. Because the offering carries no permanent debt, investors are not required to replace debt to avoid taxable boot, though 1031 investors whose relinquished property was leveraged may need to contribute more cash to satisfy the equal-or-greater-value requirement. The minimum investment is $100,000 for Section 1031 investors and $25,000 for cash investors. On exit, the sponsor may pursue a sale for cash - which each investor can structure as a follow-on 1031 exchange - or, alternatively, a Section 721 contribution of the properties to an operating partnership (such as an Inland-affiliated REIT's UPREIT) in exchange for OP units, providing an optional path to a tax-deferred roll-up. Whether that Section 721 optionality is offered remains in the signatory trustee's sole discretion.
Analysis of Inland Self-Storage Portfolio XXII DST
Insights
For a 1031 exchanger, Inland Self-Storage Portfolio XXII is best read as a debt-free, bond-like income vehicle rather than a growth play - a deal whose entire risk-return character is set by the decision to carry no permanent leverage. The absence of a mortgage removes the single largest source of DST capital loss - a maturity default or a forced refinancing into a soft market - and simplifies the exchange because there is no debt to replace. The trade-off is deployment efficiency: an all-cash structure requires more equity to satisfy the equal-or-greater-value rule, so an investor exiting a highly leveraged relinquished property may be unable to fully deploy proceeds without generating boot elsewhere. It therefore fits a lower-leverage or debt-averse exchanger, or one pairing it with a leveraged DST to hit a target debt-replacement ratio, far better than a high-basis, high-debt exchanger. On relative value, the numbers are fair rather than generous. The roughly 4.25% starting distribution and 4.51% ten-year average essentially meet the self-storage market's income and peak-yield benchmarks, while the projected growth screens above average - unsurprising, since the yield is engineered to climb from 4.25% toward 5.0% by year ten off month-to-month rent increases. Two cautions on that headline: the Year-1 payout ratio of about 1.07x means the first-year distribution is not fully covered by property NOI and leans on the $5,686,280 reserve, so early income should be read as forecast rather than earned; and the load is heavy. Total offering costs of 8.40% plus a 2.50% acquisition fee - roughly 10.9% all-in - price the $115,869,677 raise about 20% above the $96,750,000 purchase price, an implicit hurdle the portfolio must clear through income and appreciation before an investor is made whole. That is the cost of preserving the deferral and buying diversification; it is not cheap. The crux is occupancy and rate versus the Exhibit D forecast. Month-to-month storage leases cut both ways: rents reprice quickly in strong markets but erode fast when new supply arrives or demand softens, and the sector has low barriers to entry. The roughly 89% occupancy at acquisition is stabilized but not full, leaving modest upside and real dependence on Devon's revenue-management execution. The other variable to watch is Florida catastrophe exposure - about 78% of value sits in hurricane-susceptible, partially flood-zoned coastal markets, so insurance cost and availability and a single bad storm season feed directly into the uncontrollable costs that reduce rent payable to the Trust under the master lease. Net: this suits an accredited 1031 investor who wants capital preservation, passive current income, and the downside protection of a no-debt structure, and who accepts a market-rate yield, a heavy load, illiquidity, sponsor control, and single-sector, Florida-weighted storage risk. Investors needing meaningful debt replacement, above-market current yield, or genuine asset-type diversification should look elsewhere or blend this with a leveraged sleeve. The base-case exit is a cash sale that rolls into another 1031, with an optional - and discretionary - Section 721 UPREIT contribution into an Inland-affiliated REIT for those wanting diversified OP units.
Advantages
Debt-free capital structure: with no permanent mortgage, there is no leverage risk, no balloon-refinance risk, and no lender foreclosure or cash-sweep exposure - a materially lower-risk profile than leveraged DSTs - and because there is no debt to replace, the 1031 mechanics are simpler. Diversification within a single offering: seven separate self-storage facilities across three states (Florida, North Carolina, Tennessee) and multiple sub-markets reduce the single-asset and single-location dependence of a one-property DST. Attractive asset class: self-storage has historically shown resilience through economic downturns, relatively low capital-expenditure intensity, and pricing flexibility from short-term, month-to-month leases that reprice quickly. Experienced, vertically integrated sponsor and operator: IPC has sponsored 328 programs and raised roughly $11 billion from more than 28,500 investors, while Devon operates 207 facilities across 31 states, providing deep storage-specific operating expertise and technology. Current-income orientation with reserves: the Trust targets regular distributions from net cash flow and is funded with a substantial initial reserve of $5,686,280 for capital needs. Tax efficiency: the interests qualify as Section 1031 replacement property, with an optional Section 721 UPREIT exit path and depreciation available to shelter income. In-place cash flow: approximately 89% average physical occupancy at acquisition reflects a stabilized, operating portfolio rather than a development or lease-up bet.
Concerns
Illiquidity: there is no public market for the interests, they are subject to legal transfer and resale restrictions, and investors must be prepared to hold for an indefinite, relatively long-term period and could lose their entire investment. No control: investors have no voting rights or authority over management, property operations, or the timing of a sale; the signatory trustee and IPC affiliates control all decisions, and the trustees owe only limited duties. Single-sector and undiversified by type: the portfolio is entirely self-storage and is not diversified as to asset type or tenant mix, so a sector-wide downturn, new-supply oversubscription, or a decline in storage demand would affect the whole portfolio. Geographic concentration: five of the seven assets (roughly 78% of purchase-price value) are in Florida, and several - Fernandina Beach, Kissimmee, Lady Lake, Miami, and Pompano Beach - sit in hurricane-susceptible regions, with portions of the Miami and Pompano Beach sites in FEMA flood zone AH. Master-tenant dependence: the Trust depends on an IPC-affiliated master tenant for rent, which in turn depends on month-to-month space tenants; a master-tenant or tenant default would adversely affect distributions. Fees and load: offering costs total 8.40% of the raise ($9,733,053, including 5.00% selling commissions, 1.25% dealer fee, 1.65% placement-agent fee, and 0.50% organization and offering expenses), plus a 2.50% acquisition fee and ongoing asset-management and disposition fees, so the $115,869,677 offering is well above the $96,750,000 property purchase price. Conflicts of interest: the sponsor, master tenant, property manager, and placement agent are all IPC affiliates. Distribution and value risk: distributions are not guaranteed, can be supported by reserves, and are exposed to occupancy and expense volatility (uncontrollable-cost overruns reduce rent payable to the Trust), while real estate values can decline; zoning nonconformity at the Miami and Pompano Beach sites limits rebuilding after a major casualty. Tax risk: Section 1031 qualification is not guaranteed, and future legislative or regulatory change could reduce or eliminate the tax deferral or the Section 721 optionality.
Inland Self-Storage Portfolio XXII DST — Complete Offering Data
Offering & Structure
Investment NameInland Self-Storage Portfolio XXII DST
SponsorInland
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusRejected
Last Updated2026-07-13
Size & Availability
Total Offering$115,869,677
Equity$115,869,677
DebtAll-Cash
Available Equity$115,869,677 (100% of equity)
Minimum Investment$100,000
Total Load10.90%
Initial Reserves4.91%
Property
Property TypeSelf-Storage
StrategyCore
LocationFL, NC, TN
Market TierTier 3
Income & Projections
Average Yield4.51%
Projected Yields (Y1–Y10)Y1 4.25% · Y2 4.25% · Y3 4.25% · Y4 4.28% · Y5 4.39% · Y6 4.50% · Y7 4.61% · Y8 4.72% · Y9 4.84% · Y10 4.97%
Tax-Adjusted Yield5.39%
Cap Rate Equivalent6.84%
Year 1 NOI$5,283,083
Y1 Payout Ratio1.07
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period10 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income4.51% vs 4.50% market — Meets Average
Growth16.94% vs 14.89% market — Above Average
Peak4.97% vs 4.85% market — Meets 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.
