ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its Net-Leased Portfolio 53 Delaware statutory trust offering, the company’s largest 1031-eligible investment offering to date.
According to a filing with the Securities and Exchange Commission, the offering launched in December 2021 and raised $90.3 million from accredited investors. Proceeds from the offering were used to purchase a 1.6 million-square-foot portfolio of 25 properties across 18 states for $176.3 million. Tenants at the properties include Kroger, Dollar General, Walgreens, Dollar Tree, CVS, Schnucks, Sherwin-Williams, Webster Bank, WellMed, and Family Dollar.
The offering launched with a loan-to-value of 48.77 percent and non-recourse interest-only financing at a fixed rate of 3.45 percent.
Warren Thomas, a managing partner at ExchangeRight, said “the size of this portfolio has allowed more investors to benefit from the company’s investment strategy, which focuses on net-leased properties with tenants operating in recession-resilient industries.”
“Given the size of this offering, we were able to help significantly more investors, representatives, and advisors access another ExchangeRight portfolio designed to provide stable income through market cycles and economic volatility,” Thomas added.
ExchangeRight and its affiliates’ platform has more than $5.3 billion in assets under management, diversified across more than 1,100 properties totaling 21 million square feet in 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.