PASADENA, Calif. - ExchangeRight has fully subscribed its $54.52 million Net-Leased Portfolio 38 DST offering. The offering is 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 have leases backed by CVS, Kroger, Dollar General, Walgreens, and Tractor Supply.
Net-Leased Portfolio 38 is invested in 13 single-tenant net-leased properties strategically diversified across locations with material population centers throughout 8 states, including Texas, Mississippi, New Mexico, and Wisconsin. The properties have a weighted-average lease term of 12.9 years. The offering launched with 10-year fixed-rate financing with an annual interest rate of 4.05%.
“The demand for our DST offerings remains high given our consistency and offering stability amid the market volatility caused by the pandemic,” said Warren Thomas, a managing partner of ExchangeRight. “So far this year, we have been entrusted to steward over $264 million in DST equity, which ranks ExchangeRight as the 2nd largest sponsor in the 1031 DST market according to Mountain Dell Consulting. With Net-Leased Portfolio 38, we are once again sticking to our principles by focusing on national investment-grade tenants in recession-resilient industries in order to provide stability for investors even through economic uncertainty.”
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 38’s current cash flow to investors is 6.18% with annual targeted increases resulting from contractual rent increases written into 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.