PASADENA, Calif. - ExchangeRight has brought another Net-Leased Portfolio DST full cycle in Q3 2021, generating annualized returns of 6.54% for investors who chose to cash out or complete a 1031 exchange with their proceeds. For investors who chose to complete a tax-deferred 721 exchange into the acquiring REIT, average annualized returns were equivalent to 7.99% based on an independent KPMG valuation of the acquiring portfolio. In conjunction with the closing, ExchangeRight provided the investors in each portfolio with the option to perform another 1031 exchange, receive cash, complete a tax-deferred 721 exchange, or any combination of these options.
ExchangeRight provided uninterrupted monthly distributions to investors without reducing or delaying any distribution payments throughout the offering’s four-year hold period. The portfolio was diversified across 16 net-leased properties backed primarily by investment-grade tenants successfully operating in essential industries, including Walgreens, Fresenius Medical Care, Family Dollar, and Hobby Lobby.
“We are pleased to have once again taken a DST portfolio full cycle that generated total returns above anticipated targets,” said Warren Thomas, a managing partner of ExchangeRight. “It is gratifying to take another step in our aggregated exit strategy with this full-cycle event, serving investors in Net-Leased Portfolio 15 by preserving their capital, delivering solid returns, and providing flexible exit options to maximize investor value into the future.”
ExchangeRight and its affiliates’ vertically integrated platform features over $4.3 billion in assets under management, diversified across more than 975 properties, over 18 million square feet, and throughout 42 states. More than 5,700 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.