ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its $115.1 million Net-Leased Portfolio 29 DST offering. The Delaware statutory trust offering was designed for investors seeking to participate in a 1031 tax-deferred exchange, as well as those seeking a real estate investment on a cash basis.
The portfolio is comprised of 24 single-tenant properties with long-term net leases to tenants operating in the necessity retail and healthcare industries, including CVS, Dollar General, Pick ‘n Save (Kroger guaranty), AutoZone, HyVee Grocery, and Tractor Supply.
The offering launched in September 2019 and closed with 10-year interest-only, non-recourse financing with a stated annual rate of 3.84 percent and a weighted-average lease term of 12.8 years. ExchangeRight said that its targeted initial cash flow to investors is 6.82 percent in the first year of ownership.
“2020 is off to a great start with our closing out this portfolio,” said Warren Thomas, one of ExchangeRight’s managing members. “The swift capital raise of Net-Leased Portfolio 29 is another demonstration of the demand we continue to experience for our recession-resilient offerings that are designed to provide investors with stable cash flow and capital preservation in a volatile market.”
Based in Pasadena, California, ExchangeRight and its affiliates have more than $2.4 billion in assets under management. The company’s platform is comprised of 650+ properties totaling more than 13 million square feet, and in 2019, the firm’s total equity raised was $372 million, representing 67 percent year-over-year growth.