ExchangeRight Fully Subscribes $71 Million DST Portfolio

ExchangeRight, a sponsor of securitized 1031 exchanges and other real estate offerings, announced that it fully subscribed its Net-Leased Portfolio 58 DST, a $71.13 million offering.

The portfolio includes 317,101 square feet of grocery, “necessity-based retail,” banking and pharmacy tenants. According to ExchangeRight, the portfolio was structured to provide investors with monthly distributions starting at an annualized rate of 5%.

The DST was launched with a 43% loan-to-value and non-recourse interest-only financing at a fixed rate of 5% percent over a 10-year term. The offering contains 25 properties in 25 markets across 14 states and eight tenants including Dollar General, CVS Pharmacy, Aldi, Family Dollar, Huntington Bank, Hobby Lobby, Dollar Tree and Walgreens.

“We are happy to have provided investors with the opportunity to invest in this ExchangeRight offering designed for recession resilience,” said Joshua Ungerecht, a managing partner at ExchangeRight. “The properties selected for this portfolio are tenanted by creditworthy businesses that remained open and operating during challenging economic environments, including throughout the COVID-19 pandemic.”

ExchangeRight and its affiliates’ platform has more than $5.3 billion in assets under management that are diversified across more than 1,100 properties and over 21 million square feet throughout 47 states. The company invests in net-leased properties in the necessity-based retail and healthcare industries, as well as value-add inline and outparcel retail spaces shadow-anchored by grocery tenants.

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