ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has taken its Delaware statutory trust offering, Net-Leased Portfolio 13 DST, full cycle.
According to documents filed with the Securities and Exchange Commission, the Regulation D offering launched in August 2016 and had a target raise of $25.8 million.
Each DST investor had the option to perform another 1031 exchange, receive cash, or complete a tax-deferred 721 exchange, or any combination of these options.
According to ExchangeRight, total returns topped more than 130 percent, including return of capital for investors who chose to cash out or complete a 1031 exchange. Total returns equaled 141 percent including return of capital for investors who chose to complete a tax-deferred 721 exchange into the acquiring REIT, based on an independent valuation performed by KPMG of the acquiring REIT portfolio, the company added.
The DST portfolio’s average annualized rate of return for cash and 1031 exchange investors was 7.31 percent, more than 10 percent higher than the company’s initial projections, ExchangeRight said. For 721 investors, the average annualized returns were equivalent to 9.88 percent, or 48 percent higher than initial projections.
“This is ExchangeRight’s fifteenth full cycle offering and the sixth net-leased portfolio that we have brought full cycle as part of our aggregated exit strategy, adding to our track record of providing total returns that have been at or in excess of investor return projections,” said Warren Thomas, a managing partner.
ExchangeRight and its affiliates’ platform has more than $3.1 billion in assets under management, comprised of 750 properties totaling in excess of 13 million square feet in 38 states. The company offers REIT, fund, and 1031 DST portfolios that target secure capital, stable income, and strategic exits. The company sources, syndicates, and manages long-term, net-leased assets backed by corporations that operate essential businesses in the necessity-based retail and healthcare industries.