Inland Student Housing Portfolio DST Overview
Inland Student Housing Portfolio DST is a Delaware statutory trust offering, sponsored by an affiliate of Inland Private Capital Corporation (IPC), that gives accredited investors fractional ownership of a three-property, purpose-built student housing portfolio serving three major universities. The Parent Trust owns 100% of the beneficial interests in three Operating Trusts, each holding a single community: Fuse at 720 Northwestern Avenue in West Lafayette, Indiana (serving Purdue University), The View on 10th at 1001 Speight Avenue in Waco, Texas (serving Baylor University), and The Flats at West Village at 852 West Main Street in Charlottesville, Virginia (serving the University of Virginia). Together the portfolio comprises 726 residential units and 1,829 beds across roughly 682,000 net rentable square feet, plus ground-floor retail at the Indiana and Virginia assets. The properties were acquired on September 26, 2025 from an unaffiliated seller for an aggregate purchase price of $274,500,000. Each community is a modern, amenity-rich building located off-campus but proximate to its university, featuring clubhouses, fitness centers, business centers with private study rooms, resort-style pools and hot tubs, and outdoor lounges. Day-to-day operations are handled by The Scion Group LLC, an established third-party student housing operator, under a master lease structure in which each property is leased to an IPC-affiliated master tenant. The offering serves as replacement property for investors completing a Section 1031 exchange, as well as for cash investors, and is sold only to accredited investors under Rule 506(b) of Regulation D. Total equity offered is $170,770,544, complemented by approximately $149,735,000 of fixed-rate, interest-only Freddie Mac financing. The DST format delivers passive, professionally managed ownership with monthly distribution potential, suiting 1031 exchangers and income-oriented accredited investors seeking sector and geographic exposure to student housing who do not require liquidity and can hold for a long-term horizon aligned with the loans' 2035 maturity.
Highlights
The portfolio is anchored to the enrollment demand of three well-established universities across three states. Fuse serves Purdue University in West Lafayette, Indiana; The View on 10th serves Baylor University in Waco, Texas; and The Flats at West Village serves the University of Virginia in Charlottesville. Each asset sits off-campus but in close proximity to its respective campus, positioning it to capture students seeking modern housing near school. Two of the three schools, Baylor University and the University of Virginia, require freshmen to live on campus, which channels upper-class demand toward nearby off-campus communities like these. Serving multiple large universities in different regions diversifies the portfolio's exposure to any single school's admissions, housing policy, or local market conditions, an advantage relative to a single-campus student housing investment.
The three communities are purpose-built, amenity-rich student housing assets. Fuse (Purdue) offers 229 units and 489 beds in a five-story building over a two-story underground garage, with a clubhouse, business center with private study rooms, fitness center, yoga and dance studio, an outdoor lounge with fire pits, and ground-floor retail. The View on 10th (Baylor) offers 257 units and 718 beds in a four-story building wrapped around a seven-level parking garage, with a clubhouse and lounge, coffee station, 24-hour fitness center, resort-style pool, and hot tub and cabana lounge. The Flats at West Village (UVA) offers 240 units and 622 beds in a nine-story building over a two-story underground garage, with a clubroom, 24-hour fitness center, pool and hot tub, and ground-floor retail. Combined, the portfolio totals 726 units and 1,829 beds and is operated by The Scion Group, an established national student housing manager, under long-term master leases.
Each property is financed with a separate first-mortgage loan from Walker & Dunlop under the Freddie Mac Capital Markets Execution Program: $47,986,000 on the Indiana property, $42,899,000 on the Texas property, and $58,850,000 on the Virginia property, for an aggregate original principal balance of approximately $149,735,000. All three loans carry a fixed interest rate of 5.12% per annum, a 10-year term, and require monthly interest-only payments through their common maturity date of October 1, 2035, when the full principal becomes due. The fixed-rate, interest-only structure locks in borrowing costs and preserves current cash flow by deferring amortization. Against the $274,500,000 aggregate purchase price, the financing represents roughly a 54.5% loan-to-value ratio, and each $100,000 Interest carries approximately $87,682 of associated debt, allowing 1031 investors to satisfy the requirement to replace debt from a relinquished property.
The offering is sponsored by an affiliate of Inland Private Capital Corporation (IPC), a subsidiary of Inland Real Estate Investment Corporation and part of The Inland Real Estate Group of Companies, which has been active in real estate for more than 50 years. As of September 30, 2025, IPC had sponsored 328 private placement programs and raised approximately $11 billion of equity from more than 28,500 investors. IPC received the 2006 and 2015 ACE Awards from the Alternative and Direct Investment Securities Association (ADISA), of which it is a founding member. Inland completed 19 full-cycle Section 1031 exchange programs in 2023 and 2024 alone, and affiliate Inland Real Estate Acquisitions has facilitated more than $50 billion of real estate purchases. Property-level operations are handled by The Scion Group, an experienced third-party student housing operator whose affiliate is also investing alongside outside investors by acquiring 2.0% of the Interests.
The offering is designed as replacement property for investors completing a Section 1031 exchange. Special tax counsel has provided its opinion that an investor's acquisition of an Interest should be treated as a direct acquisition of a real property interest for purposes of Section 1031, allowing exchangers to defer capital gains from the sale of relinquished property. The trust structure delivers passive ownership with monthly distribution potential and no landlord responsibilities, and the associated replacement debt of approximately $87,682 per $100,000 Interest helps investors meet the equal-or-greater-debt requirement of an exchange. For the eventual exit, the sponsor describes the potential for a Section 721 Contribution, in which the properties could be contributed to an operating partnership in exchange for OP Units on a tax-deferred basis, or a sale for cash that each investor may structure as a follow-on Section 1031 exchange, providing flexibility to continue deferring gains beyond the life of this program.
Analysis of Inland Student Housing Portfolio DST
Insights
For a 1031 exchanger, Inland Student Housing Portfolio DST offers a way to defer capital gains while trading active landlord duties for passive, professionally managed ownership of a diversified student housing portfolio backed by a large, experienced sponsor. The most attractive features are the three-property, three-university diversification (Purdue, Baylor, UVA), the fixed-rate 5.12% interest-only financing at a conservative roughly 54.5% loan-to-value, the approximately $87,682 of replacement debt per $100,000 Interest that helps satisfy exchange requirements, and Scion's operational track record plus its 2.0% co-investment. The risk/return profile is that of a leveraged, income-oriented real estate holding whose upside depends on maintaining high occupancy and rental rates through the properties' annual leasing cycles and on executing a profitable sale or refinance around the 2035 loan maturity. The single most important item to watch is the relationship between property performance and the master lease waterfall. Aggregate base rent of roughly $8.07 million barely clears the roughly $7.67 million of annual interest-only debt service, which means investor distributions materially depend on the master tenants paying additional and supplemental rent, and that in turn requires the properties' gross income to exceed the contractual breakpoints. Occupancy and rate assumptions therefore carry more weight here than the fixed base rent alone would suggest; underperformance versus pro forma would compress distributions quickly, and because the master tenants are thinly capitalized, there is limited cushion if operations fall short. Prospective investors should scrutinize the forecasted statement of cash flows, current occupancy and pre-leasing at each community, and any exposure to shifting university housing policies. On valuation and structure, the offering is capitalized at approximately $320.5 million (equity plus debt) against a $274.5 million purchase price, a premium of about $46 million driven by an 8.40% selling load, a 4.69% acquisition fee, and reserves. That load spread is typical of DST offerings but real: the properties must appreciate enough to recover these costs before investors realize a gain, which raises the importance of the exit cap rate at disposition. The interest-only, balloon structure amplifies both current cash flow and refinancing or sale risk at maturity. Compared with a stabilized net-lease DST, this offering carries more operational variability given the student housing cycle, but also more organic income growth potential if the assets outperform. It fits an accredited 1031 investor with a long horizon who values sponsor pedigree, sector diversification, and current income, understands the illiquidity and lack of control, and is comfortable that distributions and exit outcomes hinge on real operating performance rather than a fixed coupon. The available Section 721 UPREIT and follow-on 1031 exit options provide meaningful, though not guaranteed, tax-deferral flexibility at the end of the hold.
Advantages
This offering pairs a tax-advantaged structure with institutional-quality assets and an experienced sponsor. It is purpose-built to serve as Section 1031 replacement property, letting accredited exchangers defer capital gains while stepping into fully passive, professionally managed real estate with monthly distribution potential and no day-to-day management burden. The portfolio is diversified across three properties, three states, and three major universities (Purdue, Baylor, and the University of Virginia), reducing reliance on any single campus or local market, an advantage over single-asset student housing DSTs. The assets are modern, amenity-rich communities totaling 726 units and 1,829 beds, operated by The Scion Group, an established national student housing manager whose affiliate is co-investing by taking 2.0% of the Interests, aligning the operator with investors. Financing is attractive on a relative basis: fixed at 5.12% for a 10-year term, interest-only, which locks in rate certainty and maximizes current cash flow, at a conservative aggregate loan-to-value of roughly 54.5% of purchase price. Each $100,000 Interest carries about $87,682 of replacement debt, helping 1031 investors satisfy the debt-replacement requirement. The sponsor, an affiliate of Inland Private Capital, brings deep experience: 328 sponsored programs, roughly $11 billion of equity raised, more than 28,500 investors, and 19 full-cycle 1031 programs completed in 2023 and 2024 alone. The offering also contemplates flexible exit paths, including a potential Section 721 UPREIT contribution for OP Units or a cash sale investors can roll into a follow-on 1031 exchange, extending tax deferral. Reserve accounts are established at each property to help fund capital expenditures.
Concerns
The Interests are speculative, illiquid, and involve a high degree of risk; there is no public market, transfer is restricted, and investors should be prepared to hold for years and to lose their entire investment. As DST beneficiaries, investors have no control over management or operation of the properties, cannot vote on day-to-day matters, and rely entirely on the trustees and the sponsor, whose duties and authority are limited. The portfolio is concentrated in a single property type, student housing, which carries sector-specific risks: an annual leasing cycle, a short lease-up window, seasonal cash flows, and sensitivity to changing university admissions and on-campus housing policies. A drop in enrollment or a policy change at Purdue, Baylor, or UVA could reduce demand and occupancy. Income flows through a master lease structure to IPC-affiliated master tenants that are thinly capitalized, funded solely by demand notes from IPC, which is not obligated to contribute additional capital; a master tenant default would adversely affect distributions. Aggregate base rent (about $8.07 million) only modestly exceeds annual interest-only debt service (roughly $7.67 million), so investor cash flow depends heavily on the properties generating additional rent above contractual breakpoints. The properties carry approximately $149.7 million of debt that is interest-only with a balloon due at the October 1, 2035 maturity; if the trusts cannot sell or refinance by then, they may be unable to repay and could be forced into a transfer distribution, and prepayment (yield-maintenance) provisions may constrain the exit. Fees and load are significant: an 8.40% offering load, a 4.69% acquisition fee, ongoing asset-management fees, a 3.0% disposition fee, and other costs mean the total capitalization exceeds the properties' purchase price by roughly $46 million, so investors must overcome that premium to profit. The property manager is subject to conflicts of interest, reserves may prove insufficient, and the anticipated Section 1031 tax treatment is not guaranteed; the tax opinion is limited in scope and an acquisition may fail to qualify.
Inland Student Housing Portfolio DST — Complete Offering Data
Offering & Structure
Investment NameInland Student Housing Portfolio DST
SponsorInland
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusRejected
Last Updated2026-07-13
Size & Availability
Total Offering$320,505,544
Equity$170,770,544
Debt$149,735,000
Available Equity$170,770,544 (100% of equity)
Minimum Investment$100,000
Total Load13.09%
Initial Reserves9.73%
Property
Property TypeStudent Housing
StrategyCore
LocationIN, TX, VA
Market TierTier 3
Income & Projections
Average Yield4.43%
Projected Yields (Y1–Y10)Y1 4.25% · Y2 4.25% · Y3 4.25% · Y4 4.25% · Y5 4.25% · Y6 4.29% · Y7 4.42% · Y8 4.58% · Y9 4.76% · Y10 4.97%
Tax-Adjusted Yield7.08%
Cap Rate Equivalent8.24%
Year 1 NOI$16,739,331
Y1 Payout Ratio1.25
Financing
In-Place LTV46.72% LTV
LenderWalker & Dunlop / Freddie Mac
Loan TypeFixed
Interest Rate5.12% fixed
Loan Term10 years
I/O Period10 years
AmortizationN/A
Y1 DSCRNot Disclosed
Exit
Estimated Hold Period10 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income4.43% vs 5.12% market — Below Average
Growth16.94% vs 23.72% market — Below Average
Peak4.97% vs 5.79% 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.
