PASADENA, Calif. - ExchangeRight has fully subscribed its $39.08 million Net-Leased Portfolio 37 DST, an offering designed to generate stable income and protect investor capital with its diversified portfolio of net-leased assets backed by national corporations that successfully operate essential businesses in the necessity-based retail and healthcare industries. The portfolio’s tenants include CVS, Dollar General, and Fresenius Medical Care, among others.
Net-Leased Portfolio 37 is invested in 11 single-tenant properties diversified across Alabama, Georgia, North Carolina, South Carolina, and Tennessee. The offering launched with 7-year fixed-rate financing with an annual interest rate of 3.95% and a weighted-average lease term of 12.1 years.
“The tenants that we focus on across our 1031-eligible DST and income fund platforms have demonstrated resilience throughout the pandemic, frequently even seeing demand for their products and services increase due to their serving the essential needs of the public,” said Warren Thomas, a managing partner of ExchangeRight. “The creditworthy tenants we strategically select for our portfolios have allowed us to protect investors’ capital and generate stable income even through times of economic volatility and uncertainty. Net-Leased Portfolio 37 adheres to our investment strategy of focusing on essential businesses, recession-resilient industries, and investment-grade or national credit tenants.”
The portfolio is designed for investors seeking to participate in a 1031 tax-deferred exchange as well as investors seeking diversified portfolios of net-leased real estate on a cash basis. Net-Leased Portfolio 37’s current cash flow to investors is 6.15% with annual targeted increases due to contractual rent increases included in the portfolio’s leases.
ExchangeRight and its affiliates’ vertically integrated platform has over $2.8 billion in assets under management, diversified across more than 700 properties of over 14 million square feet located throughout 38 different states. More than 3,500 investors have trusted ExchangeRight to manage their capital. All 56 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 mission 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 sources, syndicates, and strategically manages long-term, net-leased assets backed by investment-grade corporations that operate essential businesses successfully in the necessity-based retail and healthcare industries. For more information, visit www.exchangeright.com.