PASADENA, Calif. - ExchangeRight has fully subscribed its $77 million Net-Leased Portfolio 42 DST offering leased exclusively to tenants operating essential businesses. The offering’s assets are leased to seven national creditworthy tenants that have remained open and operating throughout the pandemic, including Walmart Neighborhood Market, Dollar General, and CVS Pharmacy. The portfolio is diversified across 14 net-leased properties located in eight different states.
Net-Leased Portfolio 42 DST is structured to generate stable monthly cash flow starting at 6.32% annualized. The offering launched with 10-year financing with a fixed annual interest rate of 3.41% and interest-only payments for the entire loan term.
“Our team pulled together at the end of December to deliver this portfolio in order to provide investors with a 1031-exchangable option for those who needed to complete an exchange by the end of 2020,” said Warren Thomas, a managing partner of ExchangeRight. “Like all of the assets in our net-leased portfolios, the properties in the portfolio are backed primarily by investment-grade companies that demonstrate recession-resilience due to their successful operations in essential industries. More than a third of the offering’s income comes from Walmart Neighborhood Market, an essential business with a strong corporate credit rating of AA from Standard & Poor’s.”
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 different states. More than 4,300 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.