PASADENA, Calif. - ExchangeRight has brought its North Austin Apartment Portfolio DST offering full cycle, generating total returns of over 128.9% including return of capital to the DST and its investors. This announcement marks ExchangeRight’s 16th full-cycle offering and is part of the company’s current plan to capitalize on selling into the multifamily market while buyer underwriting remains aggressive and valuations remain at record levels.
The portfolio achieved final annualized returns of 6.80% to investors, outperforming its original target of a 6.52% annualized return on investors’ capital for the period of ownership. ExchangeRight provided uninterrupted monthly distributions throughout the offering’s 4+ year hold period without reducing or delaying any distribution payments despite significant headwinds caused by substantial property tax increases, rising insurance costs due to the impact of Hurricane Harvey on insurance companies, and the potential effect of COVID-19 and resulting government policies on the rental market and economy.
“This successful full-cycle event represents our fifth sale in the multifamily sector since 2019,” said Warren Thomas, a managing partner of ExchangeRight. “We believe that selling assets at this time allowed us to take advantage of record cap rate valuations and best preserves investor capital while eliminating future risks which could erode investor value. Our team remains focused on sourcing, syndicating, and strategically managing investment opportunities focused on recession-resilient real estate to provide stable income to investors.”
ExchangeRight and its affiliates’ vertically integrated platform features over $3.2 billion in assets under management, diversified across more than 775 properties, over 13 million square feet, and throughout 39 states. More than 4,500 investors have trusted ExchangeRight to manage their capital. All 60 of the company’s current and past offerings have met or exceeded targeted cash flow distributions to investors since the company’s founding in 2012.
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 acquires and manages long-term, net-leased assets backed by investment-grade corporations that operate essential businesses successfully in the necessity-based retail and healthcare industries. Please visit www.exchangeright.com for more information.