PASADENA, Calif. - ExchangeRight, one of the nation’s largest sponsors of securitized 1031-exchangeable real estate investments, has fully subscribed its $94 million Net-Leased Portfolio 27 DST offering. The offering launched in May 2019 and is invested in properties with long-term net leases backed by investment-grade tenants operating successfully in necessity retail and healthcare.
Net-Leased Portfolio 27 is fully occupied and comprises 18 single-tenant properties diversified across nine states throughout the Northeast, Midwest, and Southern regions. The properties are backed by companies exhibiting investment-grade metrics including Walgreens, Hy-Vee, BioLife, and Dollar General. ExchangeRight’s targeted initial cash flow to investors is 6.34% in the first year of ownership.
The portfolio closed with 10-year, interest-only, non-recourse financing with a stated annual rate of 4.34% and a weighted-average lease term of approximately 14.4 years. The offering was designed for investors seeking to participate in 1031 tax-deferred exchanges, as well as for investors seeking diversified portfolios of net-leased real estate on a cash basis.
“In addition to completing the capital raise for Net-Leased Portfolio 27, we saw record demand for our net-leased offerings during the third quarter, with investors now trusting us to steward over $2.3 billion of assets under management,” said Warren Thomas, a managing member of ExchangeRight. “Given where we are in the current economic cycle, investors have been eager to participate in our offerings, which have been designed to preserve capital and to pay attractive dividends that are both recession-resilient and can be largely tax-deferred.”
ExchangeRight and its affiliates’ platform is diversified across more than 600 properties of over 14 million square feet located throughout 38 different states. More than 2,700 investors have trusted ExchangeRight to manage their capital. All of the company’s current and past offerings have met or exceeded targeted investor cash flow distributions.
About ExchangeRight Real Estate, LLC
ExchangeRight is a privately held firm based in Pasadena, California. Together with its affiliates, it has over $2.3 billion in assets under management. ExchangeRight pursues its mission to empower people to be secure, free, and generous by providing income funds and 1031-exchangeable investment offerings that target secure capital, stable income, and strategic exits by strategically acquiring and managing long-term, net-leased assets backed by investment-grade corporations that operate successfully in the necessity-based retail and healthcare industries. For more information, visit www.exchangeright.com.