IPC Alternative REIT NAV Declines Slightly – Investigation into Risks of Inland Non-Traded REITs
The White Law Group is investigating potential securities claims and potential IPC Alternative REIT lawsuits involving non-traded real estate investment trusts (REITs) such as IPC Alternative Real Estate Income Trust Inc., a fund sponsored by Inland.
According to a recent SEC filing, the REIT reported a total net asset value (NAV) of approximately $139.1 million at the end of August 2025, reflecting a 0.5% month-over-month decline. The NAV per share also dipped slightly across multiple share classes:
-
Class T shares: $23.3219 (down 0.71% from $23.4882)
-
Class D shares: $23.2822 (down 0.68% from $23.441)
-
Class S, I, X-1, X-2 shares: $23.2592 (down 0.68% from $23.4187)
While a half-percent dip may not seem alarming, even modest NAV declines can raise questions for investors, particularly in the context of non-traded REITs, which carry unique risks.
Inland’s History with Non-Traded REITs
Inland has sponsored numerous non-traded REITs over the past two decades, including:
-
Inland American Real Estate Trust (later renamed InvenTrust Properties), one of the largest non-traded REITs ever sold, which traded on secondary markets at steep discounts to its original offering price.
-
Inland Western Real Estate Trust (later renamed Retail Properties of America, Inc.), which also struggled with valuation declines before eventually listing publicly.
-
Inland Real Estate Income Trust, which faced similar challenges with liquidity and performance.
Many of these offerings left investors frustrated with poor returns and illiquidity, leading to a significant number of Inland REIT complaints. Redemption programs were often suspended, and investors who needed liquidity frequently had to sell shares on the secondary market at significant discounts—sometimes pennies on the dollar. This history highlights why Inland’s newer offerings, such as IPC Alternative REIT, deserve close scrutiny.
Understanding Non-Traded REIT Risks
Non-traded REITs like IPC Alternative REIT are often marketed as income-generating, tax-advantaged investments. However, investors should be aware of several risks:
-
Illiquidity: Shares cannot be easily sold on an exchange. Redemption programs, if available, are limited and may be suspended at any time.
-
Valuation Issues: Unlike publicly traded REITs, pricing may lag behind actual market conditions, which can obscure underlying problems.
-
High Fees: Non-traded REITs often come with steep upfront commissions (often 7–10%) and ongoing management fees, reducing investor returns.
-
Distribution Concerns: Distributions may not always come from profits. In some cases, they are funded by borrowings or even return of investor capital.
-
Broker Misconduct: Some financial advisors may recommend non-traded REITs like Inland’s offerings without fully explaining the risks, or in cases where the investment is unsuitable for the client’s needs.
Why Investors File Complaints
The White Law Group is continuing to investigate claims that brokers may have improperly sold Inland-sponsored REITs, such as IPC Alternative REIT, to retail investors. Many clients report that they were unaware of the illiquid nature of these investments or the possibility of loss of principal.
Options for Investors
If you have invested in IPC Alternative REIT or another Inland-sponsored non-traded REIT and have concerns about your losses, you may be able to recover damages through FINRA arbitration. Brokerage firms that recommended these products may be liable for investor losses, which could form the basis of an IPC Alternative REIT lawsuit.
Frequently Asked Questions (FAQs)
1. Can I sell my IPC Alternative REIT shares?
Because IPC Alternative REIT is a non-traded REIT, its shares do not trade on an exchange. Redemption programs, if offered, are often limited and may be suspended, making it very difficult for investors to sell their shares. Many investors turn to the secondary market, where shares may trade at steep discounts.
2. Why are there so many Inland REIT complaints?
Inland’s prior non-traded REITs, such as Inland American and Inland Income Trust, became notorious for limiting redemptions and delivering disappointing returns. Investors who needed to exit often had to sell for far less than the original purchase price, leading to widespread Inland REIT complaints.
3. Are non-traded REITs like IPC Alternative a safe investment?
Non-traded REITs are considered high-risk and illiquid investments. While they are often marketed as steady income products, their performance has historically been inconsistent, and many investors report losses.
4. What is an IPC Alternative REIT lawsuit?
An IPC Alternative REIT lawsuit generally refers to a claim filed through FINRA arbitration by investors seeking to recover losses from their financial advisor or brokerage firm. These claims are based on allegations of unsuitable recommendations, misrepresentation, or failure to disclose risks.
5. How do I know if I have a claim?
If you invested in IPC Alternative REIT or another Inland-sponsored REIT and were not fully informed of the risks—or if you’ve suffered significant losses—you should speak with a securities attorney to evaluate your options.
Free Consultation with Securities Attorneys
If you are concerned about your investment in IPC Alternative REIT or another Inland non-traded REIT, The White Law Group may be able to help. Our attorneys represent investors in REIT lawsuits and complaints against brokerage firms and financial advisors nationwide.
For a free consultation, call (888) 637-5510.
Last modified: September 16, 2025
