ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its Net-Leased Portfolio 35 DST, a Delaware statutory offering that invests in necessity-based retail and healthcare properties.
Net-Leased Portfolio 35 is invested in single-tenant properties diversified across Illinois, Iowa, Missouri, and South Dakota. ExchangeRight said that its offering launched with 10-year fixed-rate financing with an annual interest rate of 3.93 percent and a weighted-average lease term of 11.6 years.
According to a document filed with the Securities and Exchange Commission in June 2020, the private placement sought to raise $11.3 million in investor equity.
“The tenants that we focus on across our 1031-eligible DST and income fund platforms operate essential businesses that have remained open and profitable throughout the year despite the economic turmoil that has impacted so many,” said Warren Thomas, a managing partner of ExchangeRight.
The portfolio is designed for investors seeking to participate in a 1031 tax-deferred exchange as well as investors seeking a cash investment. The company noted that Net-Leased Portfolio 35’s current cash flow to investors is 6.01 percent with annual targeted increases due to contractual rent increases included in the portfolio’s leases.
In late August, ExchangeRight fully subscribed its $18.7 million Net-Leased Portfolio 34 DST, an all-equity DST offering that also invests in necessity-based retail and healthcare properties.
ExchangeRight and its affiliates’ platform includes more than 700 properties totaling 14 million square feet located in 38 states. The company has more than $2.8 billion in assets under management.