ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, recently completed two Delaware statutory trusts offerings.
ExchangeRight’s Net-Leased Portfolio 4 DST launched in October 2013 and sought to raise nearly $8.7 million in investor equity, while its Net-Leased Portfolio 14 DST launched in November 2016 and sought to raise $27.1 million, according to public documents filed with the Securities and Exchange Commission.
Together the portfolios were diversified across 28 properties that were net leased to Walgreens, Tractor Supply, Dollar General, and Fresenius Medical Care.
ExchangeRight provided the investors in each portfolio with the option to perform another 1031 exchange, receive cash, complete a tax-deferred 721 exchange, or any combination of these options.
ExchangeRight indicated that total returns for investors, including return of capital, ranged from 129 to 168 percent. Annual returns, according to the company, ranged from 6.77 to 7.73 percent 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 company reported that annual returns were the equivalent of 8.31 to 9.16 percent, based on an independent KPMG valuation of the acquiring portfolio.
ExchangeRight said that it provided uninterrupted monthly distributions to investors throughout the two offerings’ nearly five-year and eight-year hold periods without reducing or delaying payments.
“This marks our seventeenth and eighteenth successful full-cycle offerings and reflects ExchangeRight’s purpose of sourcing, syndicating, and managing best-in-class real estate portfolios to faithfully steward wealth,” said Joshua Ungerecht, a managing partner of ExchangeRight.
ExchangeRight and its affiliates’ platform has more than $3.4 billion in assets under management across more than 800 properties, 14 million square feet, and throughout 40 states. The company acquires and manages long-term, net-leased assets backed by tenants that operate essential businesses in the necessity-based retail and healthcare industries.