Investors Fully Subscribe ExchangeRight Debt-Free All-Cash 7 DST Offering

ExchangeRight, a sponsor of Delaware statutory trust and non-traded real estate investment trust investment offerings, has fully subscribed its ExchangeRight Net-Leased All-Cash 7 DST. Launched in August 2024, the DST raised $24.8 million.

The portfolio of net-leased real estate backed by investment-grade companies operating in necessity retail and healthcare has been structured to provide investors with monthly distributions starting at an annualized rate of 5.2% currently covered 100% by in-place revenues from the offering. All-Cash 7 DST features three net-leased properties. Its tenants are BioLife, Tractor Supply, and Dollar Tree. The portfolio’s properties span ​​47,713 square feet and are located in Texas and Minnesota.

The DST’s exit strategy aims to provide investors a tax-deferred cash-out financing option, along with the potential to complete a 1031 exchange or complete a 721 exchange into ExchangeRight’s Essential Income REIT to participate in the company’s broader aggregation strategy.

“We continue to see growing demand for our all-cash offerings, which have allowed investors to participate in offerings without leverage that are designed with the same conservative investment strategy and historically recession-resilient tenants featured in our best-in-class REIT and levered net lease DSTs,” said Warren Thomas, a managing partner at ExchangeRight.

Additionally, the company said investors may choose to cash out or complete any combination of the above exit options. Pending successful future financing, ExchangeRight anticipates that investors may be able to receive a portion of their initial investment through a tax-deferred cash-out financing, with the possibility of a later 721 exchange of non-financed equity. There is no guarantee that the DST’s objectives will be achieved.

“The full subscription of All-Cash 7 DST adds another closed debt-free offering to our net lease platform, every closed offering of which has protected investor capital and maintained stable cash flow distributions meeting or exceeding projections since our inception,” added Thomas.

ExchangeRight and its affiliates’ vertically integrated platform features more than $6.3 billion in assets under management that are diversified across over 1,300 properties, and 25 million square feet throughout 47 states, as of Nov. 30, 2024.

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