PASADENA, Calif. - ExchangeRight, one of the nation’s leading providers of diversified real estate DST and REIT investments, has announced that the company has successfully brought its 33rd offering full cycle on behalf of investors. Net-Leased Portfolio 22 DST, a diversified portfolio of 15 properties net-leased to historically recession-resilient tenants, was acquired by ExchangeRight’s Essential Income REIT after a five-year hold period. ExchangeRight provided investors multiple exit options at their sole discretion upon closing, with total net annual returns to investors ranging from 6.37% to 8.29%.
In connection with closing, ExchangeRight provided Net-Leased Portfolio 22 DST investors options to complete a tax-deferred 721 exchange into the REIT, perform another 1031 exchange, receive cash, or a combination of these options. The total return on sale including cash flow to investors ranged from 133.18% to 142.47% of initial capital investment. ExchangeRight’s full-cycle net lease offerings have produced an average annual return on investment of 7.42% to 8.87% for 1031 and cash investors and 8.50% to 10.01% for 721 exchange investors.
This offering consisted of 15 properties diversified across 231,654 square feet, 10 states, and 9 historically recession-resilient tenants, featuring BioLife, CVS Pharmacy, Dollar General, Family Dollar, Old National Bank, Fresenius Medical Care, Pick ‘n Save, Tractor Supply, and Walgreens. Rental income from the portfolio’s tenants fully supported consistent and increasing distributions to Net-Leased Portfolio 22 investors throughout the pandemic and recent economic volatility.
“This is ExchangeRight’s thirty-third full-cycle offering and the twenty-first net-leased portfolio that we have brought full cycle as part of our aggregation strategy, extending our track record of meeting or exceeding return projections for all completed ExchangeRight offerings since inception,” said Joshua Ungerecht, a managing partner of ExchangeRight. “We are pleased to have been able to protect investors’ capital, to have provided them with stable and secure income, and to deliver strong total returns consistent with our original projections in the face of challenging economic conditions throughout the hold period.”
ExchangeRight and its affiliates’ vertically integrated platform features more than $5.6 billion in assets under management that are diversified across over 1,200 properties, and 23 million square feet throughout 47 states. ExchangeRight pursues its passion to empower people to be secure, free, and generous by providing REIT, fund, and 1031 DST portfolios that target secure capital, stable income, and strategic exits. The company structures and manages net-leased portfolios of assets backed primarily by investment-grade corporations that successfully operate in the necessity-based retail and healthcare industries, as well as diversified value-add portfolios of inline and outparcel retail properties shadow-anchored by strong-performing grocery tenants. Past performance does not guarantee future results. Please visit www.exchangeright.com for more information.
About ExchangeRight’s Essential Income REIT
The Essential Income REIT, a Maryland statutory trust, is a self-administered real estate company, formed on January 11, 2019, focusing on investing in single-tenant, primarily investment-grade net-leased real estate. The REIT pays an annualized distribution rate on new investments of 6.36% for its Class I shares and 5.98% for Class A shares and has fully covered its dividend with Adjusted Funds from Operations since its inception and through its most recently reported period. The Company, through its operating partnership, ExchangeRight Income Fund Operating Partnership, LP, owned 352 properties in 34 states (collectively, the “Trust Properties”) as of August 31, 2023. The Trust Properties are occupied by 37 different national primarily investment-grade necessity-based retail tenants and are additionally diversified by industry, geographic region, and lease term. The Company has elected and is qualified to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. For more information, please visit the Class A website for broker-dealers, registered representatives, and their investors, or the Class I website for RIAs, advisors, family offices, institutions, and their investors. Past performance of the REIT and ExchangeRight does not guarantee future performance.
Senior Media Relations Officer