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ExchangeRight Fully Subscribes $110 Million DST Offering

ExchangeRight Fully Subscribes $110 Million DST Offering.1031 Exchange, alternative investments, Delaware statutory trust, DST, ExchangeRight, ExchangeRight Essential Income REIT, ExchangeRight Real Estate, retail

ExchangeRight, a sponsor of diversified real estate DST and REIT investments, announced that the company has fully subscribed its Net-Leased Portfolio 62 DST, a $110.12 million offering.

The company says the portfolio totals 428,605 square feet net-leased to grocery, pharmacy, medical and other necessity-based national tenants operating essential businesses.

It has been structured to provide investors with monthly distributions starting at an annualized rate of 5.00%.

The offering contains 17 properties across 17 markets, 10 states, and eight historically “recession-resilient” tenants, including FedEx, Dollar General, Pick ‘n Save, BioLife, Food Lion, Fresenius Medical Care, CVS Pharmacy and Family Dollar.

ExchangeRight says the portfolio was launched with a weighted-average lease term of 9.7 years and a 44.04% loan-to-value utilizing five-year non-recourse interest-only financing.

“During this heightened economic uncertainty, we are pleased to have provided the investors, representatives, and advisors who turn to ExchangeRight’s historically recession-resilient investment strategy another offering to protect their hard-earned wealth,” said Warren Thomas, a managing partner at ExchangeRight. “Net-Leased Portfolio 62 is designed to deliver security for investors’ capital, generate stable income, and also provide investors access to our long-term aggregation strategy through multiple exit options, including another 1031 exchange, cash out option, or a tax-deferred exchange into a REIT. In this way, this offering was not just structured to be a safe haven for the current economic moment, but to provide unparalleled exit optionality for investors to choose what is best for their investment and estate planning needs over the long run.”

Just last week, The DI Wire reported that the company had fully subscribed its Net-Leased Portfolio 61 DST, which raised more than $109 million.

ExchangeRight and its affiliates’ platform has more than $5.6 billion in assets under management that are diversified across more than 1,200 properties and over 23 million square feet throughout 47 states. The company invests in net-leased properties in the necessity-based retail and healthcare industries, as well as value-add inline and outparcel retail spaces shadow-anchored by grocery tenants.

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