ExchangeRight has fully subscribed its $119 million Delaware statutory trust offering, Net-Leased Portfolio 32 DST, in two months after its February launch, which the company claims is its most accelerated capital raise to date.
The portfolio invests in the necessity-based retail and healthcare industries, and tenants include CVS, Walgreens, Dollar General, and BioLife Plasma Services.
Net-Leased Portfolio 32 closed with 10-year interest-only, non-recourse financing with a stated annual rate of 3.45 percent and a weighted-average lease term of 12 years. The company said that the offering is diversified across 26 markets, six industries, and 27 properties across 12 states, including Arizona, Florida, Georgia, Michigan, and Texas.
“Despite the economic downturn and volatility caused by the COVID-19 pandemic, several of the investment-grade tenants in our portfolios are experiencing record-breaking demand for their essential goods and services,” said Warren Thomas, a managing partner of ExchangeRight.
Net-Leased Portfolio 32 is designed for investors seeking to participate in a 1031 tax-deferred exchange, as well as investors seeking a real estate investment on a cash basis. ExchangeRight said that the current cash flow to investors is 6.65 percent with annual targeted increases given the portfolio’s leases that have contractual rent increases.
ExchangeRight and its affiliates’ platform includes more than 675 properties totaling 14 million square feet located in 38 states. The company has more than $2.6 billion in assets under management.