ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its $54.5 million Net-Leased Portfolio 38 DST offering, a Delaware statutory offering that invests in necessity-based retail and healthcare properties.
Net-Leased Portfolio 38 is invested in 13 single-tenant net-leased properties throughout eight states, including Texas, Mississippi, New Mexico, and Wisconsin. Tenants include CVS, Kroger, Dollar General, Walgreens, and Tractor Supply, and the properties have a weighted-average lease term of 12.9 years. The offering launched with 10-year fixed-rate financing with an annual interest rate of 4.05 percent.
“With Net-Leased Portfolio 38, we are once again sticking to our principles by focusing on national investment-grade tenants in recession-resilient industries in order to provide stability for investors even through economic uncertainty,” said Warren Thomas, a managing partner of ExchangeRight.
The offering is designed for investors seeking to participate in a 1031 tax-deferred exchange as well as investors seeking a cash investment.
The company said that Net-Leased Portfolio 38’s current cash flow to investors is 6.18 percent with annual targeted increases resulting from contractual rent increases written into the portfolio’s leases.
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.