ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its $97.4 million Net-Leased Portfolio 39 Delaware statutory trust offering.
The offering, according to the company, is designed to generate cash flows to investors, starting at 6.21 percent annualized.
Net-Leased Portfolio 39’s portfolio includes 18 single-tenant net-leased properties located in 10 states and leased to necessity retail and healthcare tenants that have remained open and operating throughout the COVID-19 crisis. Tenants include Kroger, Walgreens, Dollar General, BioLife, Giant Eagle, Dollar Tree, and Tractor Supply.
The offering launched with 10-year financing with a fixed annual interest rate of 4.02 percent, ExchangeRight noted.
“As with each of our DST offerings, our exit strategy is structured to provide investors with flexible exit options once it is taken full cycle, allowing each investor to perform another 1031 exchange, cash out, or complete a tax-deferred 721 exchange into a REIT,” said Warren Thomas, a managing partner of ExchangeRight.
ExchangeRight and its affiliates’ platform has more than $2.9 billion in assets under management, comprised of more than 700 properties totaling 13 million square feet located in 38 states.