ExchangeRight, a sponsor of diversified real estate DST and REIT investments, has announced that it has fully subscribed its Net-Leased Portfolio 59 DST.
The $98.3 million offering is comprised of a 261,644-square-foot portfolio net leased to grocery, pharmacy, medical and other necessity-based national tenants operating “essential” businesses.
ExchangeRight says the portfolio has been structured to provide investors with monthly distributions starting at an annualized rate of 4.80%.
The offering contains 15 properties in 15 markets diversified across 11 states and seven tenants, including Mariano’s, Walgreens, CVS Pharmacy, Dollar General, Dollar Tree, Tractor Supply and Fresenius Medical Care. The company says Net-Leased Portfolio 59 was launched with a weighted-average lease term of 11.4 years and a 36.61% loan-to-value utilizing 5-year non-recourse interest-only financing.
“Now is the time when investors need stable, passive income,” Warren Thomas, a managing partner at ExchangeRight, said. “We created NLP 59 using our consistent investment strategy that has historically delivered its projected cash flow returns month after month without delay, even through times of unprecedented economic volatility. We developed this investment focus because we are passionate about empowering people to be secure, free, and generous. This offering was another chance for us to provide investors with the potential for the steady cash flow and capital preservation they are seeking while strategically positioning them for an aggregated exit that we believe could provide enhanced long-term value.”
ExchangeRight and its affiliates’ platform has more than $5.6 billion in assets under management that are diversified across more than 1,200 properties and over 22 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.