ExchangeRight Fully Subscribes Latest DST Offering

ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its Net-Leased Portfolio 42 DST Delaware statutory trust offering.

ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its Net-Leased Portfolio 42 Delaware statutory trust offering.

The offering launched in December 2020 and raised $36.5 million from accredited investors, which was deployed to purchase 14 net-leased properties in eight states for $77 million.

The assets are leased to seven national tenants that have remained open and operating throughout the pandemic, including Walmart Neighborhood Market, Dollar General, and CVS Pharmacy.

ExchangeRight said that the portfolio is structured to generate monthly cash flow to investors, starting at 6.32 percent annualized. The offering launched with 10-year financing with a fixed annual interest rate of 3.41 percent and interest-only payments for the loan term. The private placement offering launched in December 2020, according to a filing with the Securities and Exchange Commission.

“Our team pulled together at the end of December to deliver this portfolio in order to provide investors with a 1031-exchangable option for those who needed to complete an exchange by the end of 2020…,” said Warren Thomas, a managing partner of ExchangeRight. “More than a third of the offering’s income comes from Walmart Neighborhood Market, an essential business with a strong corporate credit rating of AA from Standard & Poor’s.”

ExchangeRight and its affiliates’ platform includes $3.2 billion in assets under management, comprised of 775 properties totaling approximately 13 million square feet and located throughout 39 states.

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