PASADENA, Calif. - ExchangeRight, one of the nation’s leading providers of diversified real estate DST and REIT investments, has announced the completion of its 25th successful full-cycle event through the sale of its $68.40 million Net-Leased Portfolio 17 DST to an acquiring net-leased REIT. The sale provided investors with total annual returns including cash flow ranging from 7.03 to 7.80 percent while maintaining uninterrupted monthly distributions and meeting cash flow projections.
The portfolio consisted of 16 net-leased properties covering 248,882 square feet across the Southeast and Midwest, featuring eight national creditworthy tenants including Dollar General, Tractor Supply, Walgreens, and Verizon Wireless. Launched in 2017, the offering provided uninterrupted monthly distributions to investors beginning at 6.84 percent and ending at 7.10 percent, not including return of capital.
Upon sale, ExchangeRight provided portfolio investors the option to perform another 1031 exchange, receive cash, complete a tax-deferred 721 exchange, or a combination of these options. For investors who chose to complete a 721 exchange into the acquiring REIT, the total annual return on sale including cash flow was equivalent to 7.80 percent of initial capital investment based in part on an independent real estate valuation from KPMG of the acquiring REIT as of March 31, 2022. For investors who chose to cash out or complete a 1031 exchange, the Net-Leased Portfolio 17 DST total annual return on sale was approximately 7.03 percent of initial capital investment including cash flow.
Warren Thomas, one of the managing partners at ExchangeRight, said the successful exit and multiple investment options provided to each investor are hallmarks of the strength and optionality created by ExchangeRight’s aggregation strategy.
“We are honored to have protected investor capital through 25 successful full-cycle offerings so far,” Thomas said. “For each net-leased portfolio that we have taken full cycle, we are 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.”
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 strategically syndicates 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. Please visit www.exchangeright.com for more information.
Senior Media Relations Officer