PASADENA, Calif. - ExchangeRight, one of the nation’s leading providers of diversified real estate DST and REIT investments, has announced the completion of its 26th successful full-cycle event through the sale of its $62.18 million Net-Leased Portfolio 18 DST to an acquiring REIT. The sale provided investors total annual returns including cash flow ranging from 6.67 to 6.98 percent while maintaining uninterrupted monthly distributions and meeting cash flow projections.
The portfolio consisted of 17 net-leased properties covering 268,041 square feet and featured national creditworthy tenants including CVS, Tractor Supply, Dollar General, and Fresenius Medical Care. Launched in 2017, the offering provided uninterrupted monthly distributions to investors averaging 6.65 percent even through the height of the COVID crisis and economic lockdowns.
Upon sale, ExchangeRight provided portfolio investors the option to complete a tax-deferred 721 exchange, perform a 1031 exchange, receive cash, or a combination of these options. For investors who chose to complete a tax-deferred 721 exchange into the acquiring REIT, the total return on sale including cash flow was equivalent to 132.74 percent of initial capital investment based in part on KPMG’s independent valuation of the acquiring portfolio’s real estate combined with its other assets and liabilities as of June 30, 2022. For investors who chose to cash out or complete a 1031 exchange, the Net-Leased Portfolio 18 DST total return on sale including cash flow was approximately 131.30 percent of initial capital investment.
Joshua Ungerecht, one of the managing partners at ExchangeRight, said the optionality created by ExchangeRight’s aggregation strategy allows for successful exit and multiple investment options.
"This accomplishment is another testament to the stability of our offerings," Ungerecht said. "Our strategy continues to preserve investor capital and produce income despite changes in the market. We are committed to empowering investors to accomplish their financial goals and giving them opportunities to customize their exits each time we take an offering full-cycle."
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. With assets under management in excess of $5.3 billion, 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