ExchangeRight, a sponsor of diversified real estate DST and REIT investments, announced that the company brought its 33rd offering full-cycle.
The company’s Net Leased Portfolio 22 DST, comprised of 15 properties, was acquired by ExchangeRight Essential Income REIT for a total purchase price of $83.8 million following a five-year hold period. According to ExchangeRight, the sale provided total net annual returns to the DST investors ranging from 6.37% to 8.29%.
The company says the total return on sale including cash flow to investors ranged from 133.18% to 142.47% of initial capital investment.
The DST portfolio, totaling more than 231,000 square feet, is reportedly diversified across 10 states and nine tenants, including BioLife, CVS Pharmacy, Dollar General, Family Dollar, Old National Bank, Fresenius Medical Care, Pick ‘n Save, Tractor Supply, and Walgreens.
“This is ExchangeRight’s thirty-third full-cycle offering and the twenty-first net-leased portfolio that we have brought full cycle as part of our aggregation strategy, extending our track record of meeting or exceeding return projections for all completed ExchangeRight offerings since inception,” said Joshua Ungerecht, a managing partner of ExchangeRight. “We are pleased to have been able to protect investors’ capital, to have provided them with stable and secure income, and to deliver strong total returns consistent with our original projections in the face of challenging economic conditions throughout the hold period.”
ExchangeRight reports that its full-cycle net lease offerings have produced an average annual return on investment of 7.42% to 8.87% for 1031 and cash investors and 8.50% to 10.01% for 721 exchange investors.
ExchangeRight and its affiliates’ platform has more than $5.6 billion in assets under management that are diversified across more than 1,200 properties and over 23 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.