ExchangeRight Takes Delaware Statutory Trust Offering Full Cycle

ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has taken its Net-Leased Portfolio 7 Delaware statutory trust offering full cycle, representing its twenty-second full-cycle event on behalf of investors.

ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has taken its Net-Leased Portfolio 7 Delaware statutory trust offering full cycle, representing its twenty-second full-cycle event on behalf of investors.

According to a filing with the Securities and Exchange Commission, the private placement offering launched in late 2014 and sought to raise $14.3 million from accredited investors.

The proceeds were deployed to purchase a 151,700-square-foot portfolio of 16 net-leased properties located in seven states for $32.2 million. Tenants include Advanced Auto Parts, CVS Pharmacy, Dollar General, Family Dollar, NAPA Auto Parts, and O’Reilly Auto Parts.

ExchangeRight provided investors with the option to perform another 1031 exchange, receive cash, complete a tax-deferred 721 exchange, or a combination of these options.

The company reported that the offering generated a 157.2 percent return on sale, including cash flow, for investors who chose to cash out or complete a 1031 exchange with their proceeds.

For investors who chose to complete a tax-deferred 721 exchange into an acquiring real estate investment trust, the portfolio generated 170.8 percent to 171.6 percent total returns, including cash flow, based on an independent KPMG valuation of the acquiring portfolio as of December 31, 2021.

ExchangeRight said that it provided uninterrupted monthly distributions to its investors over the offering’s hold period, meeting projected cash flow targets throughout.

“We have once again enhanced investors’ returns, liquidity, and optionality with a full-cycle event through our net lease DST platform,” said Warren Thomas, a managing partner of ExchangeRight. “Our focus on primarily investment-grade tenants occupying net-leased properties continues to be an effective acquisition strategy for building portfolios designed to maintain and grow investor wealth. Our strategy has allowed us to provide strong returns that meet or exceed estimates across all 22 of our full-cycle offerings, empowering our investors with cash flows that are among the highest in the industry.”

ExchangeRight and its affiliates’ platform includes more than $4.6 billion in assets under management across 1,000 properties totaling 18 million square feet in 44 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.

For more ExchangeRight news, please visit their directory page.