ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its Net-Leased Portfolio 43 DST Delaware statutory trust offering.
The offering launched in February 2021 and raised $58.7 million from accredited investors, which was deployed to purchase 16 fully occupied net-leased properties located in 13 states for $96.9 million.
The properties are leased to nine tenants, including Whole Foods Market, Walgreens, Lowe’s, and Tractor Supply, which have remained open throughout the COVID-19 pandemic. ExchangeRight said that it selected these tenants as they historically perform well in all economic cycles due to their focus on necessity-based retail and medical services.
According to ExchangeRight, its Net-Leased Portfolio 43 DST is structured to generate monthly cash flow starting at 6.04 percent annualized. The offering launched with 10-year financing of less than 40 percent loan-to-offering-price, with a fixed annual interest rate of 3.25 percent and interest-only payments for the loan term.
“We are pleased to present another offering designed for capital preservation and stable monthly income that was fully subscribed at a record pace,” said Warren Thomas, a managing partner of ExchangeRight. “Like all of our past offerings, Net-Leased Portfolio 43 DST is leased to tenants that are well suited to provide 1031 exchange and cash investors with long-term reliable income whether national economic fundamentals are strong or weak, even through recessions or pandemics.”
ExchangeRight and its affiliates’ platform has more than $3.4 billion in assets under management across more than 800 properties, totaling approximately 14 million square feet.