ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its $119 million Net-Leased Portfolio 31 Delaware statutory trust offering.
The portfolio is 100 percent occupied and includes 25 single-tenant necessity retail and healthcare properties located in 10 states, including Georgia, Illinois, Florida, and Texas. Tenants include Hy-Vee, Giant Eagle, Dollar General, and CVS. The offering launched in December 2019 and closed with 10-year interest-only, non-recourse financing with a stated annual rate of 3.49 percent and a weighted-average lease term of 13.9 years.
“While more cities order nonessential businesses to close, the tenants in ExchangeRight’s offerings continue to be among the only companies allowed to stay open across an ever-growing number of areas across the United States,” said Warren Thomas, a managing member of ExchangeRight. “A number of ExchangeRight tenants are experiencing record-breaking demand for their essential products and services—the basic necessities and healthcare services that we need as a country.”
The portfolio is 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. ExchangeRight’s current cash flow to investors is 6.76 percent with annual targeted increases given the portfolio’s leases that have contractual rent increases, the company said.
ExchangeRight is a real estate investment firm with more than 675 properties totaling 14 million square feet and located throughout 38 states. The company sponsors real estate investment trusts and 1031-exchange investment offerings and has more than $2.6 billion in assets under management.