ExchangeRight Fully Subscribes $117.1 Million DST Offering of 23 Single-Tenant Properties

ExchangeRight, a private real estate firm and sponsor of securitized 1031 exchange offerings, has fully subscribed its $117.1 Net-Leased Portfolio 28 DST offering.

ExchangeRight, a private real estate firm and sponsor of securitized 1031 exchange offerings, has fully subscribed its $117.1 million Net-Leased Portfolio 28 DST offering. The Delaware statutory trust offering launched in July 2019 and invests in properties with long-term net leases in the retail and healthcare sectors.

The offering was designed for investors seeking to participate in a 1031 tax-deferred exchange, as well as those seeking to invest in a portfolio of net-leased real estate on a cash basis. ExchangeRight’s targeted initial cash flow to investors is 6.82 percent in the first year of ownership.

Net-Leased Portfolio 28 is comprised 23 fully occupied single-tenant properties located across 22 markets in nine states. The portfolio has eight national “credit tenants,” including lease guarantees from Kroger, Dollar General, Walgreens, and Fresenius Medical Care.

The portfolio closed with 10-year interest-only, non-recourse financing with a stated annual rate of 4.03 percent and a weighted-average lease term of 11.7 years.

“We are pleased with the successful capital raise on Net-Leased Portfolio 28, which was created to meet the needs facing investors at this period in the economic cycle,” said Warren Thomas, one of ExchangeRight’s managing members.

ExchangeRight is a privately held firm based in Pasadena, California, and together with its affiliates, oversees more than 600 properties located in 38 states that total more than 14 million square feet. The company sponsors real estate investment trusts and 1031 exchange investment offerings, and more than 2,700 investors have participated in their programs.

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