ExchangeRight Takes 22-Property DST Offering Full Cycle

ExchangeRight, a sponsor of securitized 1031 exchanges and other real estate offerings, has brought its $47.39 million Net-Leased Portfolio 9 DST full cycle on behalf of its investors by selling it to a real estate investment trust.

ExchangeRight, a sponsor of securitized 1031 exchanges and other real estate offerings, has brought its $47.39 million Net-Leased Portfolio 9 DST full cycle on behalf of its investors by selling it to an affiliated real estate investment trust.

The offering provided investors with total annual returns ranging from 7.25% to 8.27%, maintained uninterrupted monthly distributions and provided investors with multiple options at exit, according to ExchangeRight.

The portfolio consisted of 22 net-leased properties diversified across 235,289 square feet, nine states and eight national tenants with investment-grade credit or otherwise creditworthy financial metrics. The portfolio’s tenants included CVS Pharmacy, Dollar General, TCF National Bank and Advance Auto Parts, and all operate in necessity-based industries.

Upon sale, ExchangeRight provided portfolio investors the option to complete a tax-deferred 721 exchange, perform a 1031 exchange, receive cash, or a combination of these options. For investors who chose to complete a tax-deferred 721 exchange into the acquiring REIT, the total return on sale including cash flow to investors was equivalent to 153.10% to 158.71% of initial capital investment based on the current value of the REIT shares provided as a part of the transaction. For investors who chose to cash out or complete a 1031 exchange, the Net-Leased Portfolio 9 DST total return on sale including cash flow was 152.96 to 158.00 percent of initial capital investment.

“As we construct our net-leased portfolios, we look for financially strong tenants providing essential services that have a track record of recession-resilient performance,” said Joshua Ungerecht, a managing partner at ExchangeRight. “With this full-cycle event, we’re proud to have once again provided stable cash flow to investors throughout the entire hold period and to provide strategic exit options to maximize value for their future.”

ExchangeRight and its affiliates’ platform has more than $5.3 billion in assets under management that are diversified across more than 1,100 properties and over 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.

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