The portfolio consisted of 16 net leased properties covering 248,882 square feet in the Southeast and Midwest, with eight creditworthy domestic tenants including Dollar General, Tractor Supply, Walgreens and Verizon Wireless. Launched in 2017, the offering provided uninterrupted monthly distributions to investors starting at 6.84% and ending at 7.10%, not including return of capital.
At the time of the sale, ExchangeRight offered portfolio investors the option of performing another 1031 exchange, receiving cash, performing a tax-deferred 721 exchange, or a combination of these options. For investors who elected to complete a 721 exchange in the acquiring REIT, the total annual return from the sale, including cash flow, was 7.80% of the initial capital investment, based in part on a KPMG’s independent real estate valuation of the acquiring REIT at March 31, 2022. For investors who elected to cash out or make a 1031 exchange, the total annual return from the sale of the 17 DST Net Leased Portfolio was approximately 7.03% of the initial capital investment, including flows cash.
Warren Thomasone of ExchangeRight’s managing partners, said the successful exit and multiple investment options offered to each investor are hallmarks of the strength and optionality created by ExchangeRight’s aggregation strategy.
“We are honored to have protected investors’ capital through 25 successful full-cycle offerings so far,” said Thomas. “For every net leased portfolio we’ve taken full-cycle, we’re pleased to have provided investors with flexible tax-deferral exit options so they can achieve their individual investment goals even in the midst of a volatile economic climate.”
About ExchangeRight
ExchangeRight pursues its passion for enabling people to be safe, free and generous by providing portfolios of REITs, funds and 1031 DSTs that target safe capital, stable income and strategic exits. The company strategically syndicates portfolios of net leased assets backed primarily by high quality companies that operate successfully in the need-based retail and healthcare sectors, as well as value-added diversified portfolios of properties on-line and off-plot retail anchored by strong performing grocery tenants. Please visit www.exchangeright.com for more information.
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SOURCE Exchange Right
