ExchangeRight, a sponsor of securitized 1031 exchanges and other real estate offerings, announced that it has taken its 31st offering full cycle out of a total of 83 offerings launched on behalf of investors.
Net-Leased Portfolio 10 DST, a $45.7 million diversified portfolio of properties net-leased to recession-resilient tenants, reportedly paid stable and increasing distributions throughout its entire hold and was ultimately acquired by an affiliated REIT.
According to ExchangeRight, the offering provided investors with total annual returns ranging from 7.26% to 8.24%.
The portfolio consisted of 22 net-leased properties diversified across 205,675 square feet, nine states, and 10 national tenants with investment-grade credit or otherwise creditworthy financial metrics. The portfolio’s tenants included CVS, Dollar Tree, PNC Bank, NAPA Auto Parts and Tractor Supply.
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 affiliated REIT, the total return on sale including cash flow to investors was equivalent to 152.85% to 156.87% 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 10 DST total return on sale including cash flow was 151.80% to 157.63% of initial capital investment.
“We are pleased to announce this 31st full-cycle event as we celebrate our 125th consecutive month since our inception of meeting or exceeding distributions to investors,” said Joshua Ungerecht, a managing partner at ExchangeRight. “We founded ExchangeRight to protect investors and provide stable income through market cycles and particularly recessions and economic crises. We are proud of how this offering demonstrates that commitment and of how we were able to exceed projected returns for this portfolio due to its resilient design.”
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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