PASADENA, Calif. - ExchangeRight has fully subscribed its $44.5 million Net-Leased Portfolio 36 DST offering. The portfolio is designed to protect investor capital and generate stable income from properties whose leases are guaranteed by Kroger, a tenant with an investment-grade credit rating that operates essential grocery businesses that have remained open throughout the COVID-19 crisis. The offering launched on July 1 with fixed-rate financing with an annual rate of 3.75% and a weighted-average lease term of 10.2 years.
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. ExchangeRight’s current monthly distribution to investors is 6.18% with targeted annual growth resulting from contractual rent increases written into the portfolio’s leases.
“Kroger is a financially stable national corporation that we focus on across our 1031-eligible DST and REIT platforms given it is an essential grocery store with an investment-grade backing,” said Warren Thomas, a managing partner of ExchangeRight. “We have collected 100% of our net-leased managed property rents throughout the economic turmoil caused by the COVID-19 pandemic, which also includes a number of other Kroger-backed properties. In addition to their success as a business, we have been pleased with the way they have responded to the needs of the public during this difficult time for our country.”
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.