ExchangeRight Fully Subscribes $39 Million DST Offering

ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its $39.1 million Net-Leased Portfolio 37 DST, a Delaware statutory offering that invests in necessity-based retail and healthcare properties.

Net-Leased Portfolio 37’s portfolio includes 11 single-tenant properties located in Alabama, Georgia, North Carolina, South Carolina, and Tennessee. Tenants include CVS, Dollar General, and Fresenius Medical Care, among others.

The offering launched with 7-year fixed-rate financing with an annual interest rate of 3.95 percent and a weighted-average lease term of 12.1 years.

“The tenants that we focus on across our 1031-eligible DST and income fund platforms have demonstrated resilience throughout the pandemic, frequently even seeing demand for their products and services increase due to their serving the essential needs of the public,” said Warren Thomas, a managing partner of ExchangeRight.

The company noted that Net-Leased Portfolio 37’s current cash flow to investors is 6.15 percent with annual targeted increases due to contractual rent increases included in the portfolio’s leases. The offering is designed for investors seeking to participate in a 1031 tax-deferred exchange as well as investors seeking a cash investment.

Last week, ExchangeRight fully subscribed its $44.5 million Net-Leased Portfolio 36 DST.

ExchangeRight and its affiliates’ platform has approximately $2.8 billion in assets under management and more than 700 properties totaling 14 million square feet located in 38 states. The company sources, syndicates, and manages long-term, net-leased assets backed by operators of essential businesses in the necessity-based retail and healthcare industries.

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