PASADENA, Calif. - ExchangeRight has brought its sixth and final multifamily offering full cycle, generating total returns of 154.48% including return of capital to the DST and its investors. These returns represent a 14.35% annualized return on investors’ capital, which is over 2.4 times higher than the company’s original target of 5.96% annual returns. ExchangeRight provided uninterrupted monthly distributions at or in excess of the company’s projections throughout the offering’s hold period.
The El Paso Apartment Portfolio was a two-property Class B value-add apartment offering totaling 393 units located in El Paso, Texas. With the sale ExchangeRight capitalized on value-add measures that it implemented to increase net operating income, exiting while buyer underwriting is aggressive and valuations remain at record levels. ExchangeRight executed its value-add strategy throughout the hold period by renovating units and increasing management efficiencies at the properties to achieve strong occupancy rates.
“We are pleased to have completed another successful multifamily exit event during this particular market cycle,” said Warren Thomas, a managing partner of ExchangeRight. “Profitably exiting the multifamily market at this opportunistic moment demonstrates our commitment to maximize value for investors and preserve their capital at both the time of acquisition and disposition.”
“When we initially became active in the multifamily market in 2015, we were able to acquire properties in the 6%-7% cap rate range,” said Joshua Ungerecht, a managing partner of ExchangeRight. “What we’re seeing in today’s market is that many multifamily properties are trading from the high 3% to the low 5% cap rate range. That is not an attractive market to buy in, but it’s a phenomenal market to sell in. Exiting at this time is the best way to serve our investors and to protect and grow their wealth.”
ExchangeRight and its affiliates’ vertically integrated platform features over $4.4 billion in assets under management diversified across 1,000 properties, over 18 million square feet, and throughout 42 states. More than 5,800 investors have trusted ExchangeRight to manage their capital. All of the company’s current and past offerings have met or exceeded targeted cash flow distributions to investors since the company’s founding.
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 spaces shadow-anchored by strong-performing grocery tenants. Please visit www.exchangeright.com for more information.