ExchangeRight, a sponsor of securitized 1031 exchanges and other real estate offerings, has fully subscribed its Net-Leased Portfolio 54 Delaware statutory trust offering, representing the firm’s largest offering to date.
According to a filing with the Securities and Exchange Commission, the private placement offering launched February 2022 and sought to raise nearly $91.2 million from accredited investors. Proceeds from the offering were used to purchase a 514,000-square-foot portfolio of 36 net-leased properties for $179 million.
The portfolio is diversified across 21 states and includes grocery, discount retail, medical, banking, and pharmacy businesses, which are leased to 14 tenants including Market 32, CVS, Dollar General, Walgreens, Tractor Supply, and Family Dollar.
The DST launched with a loan-to-value of 49.09 percent and non-recourse interest-only financing at a fixed rate of 3.50 percent amortized over a 10-year term. The offering is structured to generate investor distributions starting at an annualized rate of 5.50 percent, the company said.
“With this portfolio, we are pleased to add a diverse group of new companies to the expanding list of recession-resilient tenants of ExchangeRight’s assets under management,” said Joshua Ungerecht, a managing partner. “The selection of tenants and diversification of the offering is designed to produce stable income and capital preservation over the long term. We are honored to serve investors by helping them protect their wealth and achieve stable income, especially through trying economic conditions.”
ExchangeRight and its affiliates’ platform has more than $5.3 billion in assets under management that are diversified across over 1,100 properties and more than 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.