PASADENA, Calif. - ExchangeRight, one of the nation’s largest sponsors of securitized 1031-exchangeable real estate investments, has fully subscribed its $117.1 million Net-Leased Portfolio 28 DST offering. The offering launched in July 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 28 is fully occupied and comprises 23 single-tenant properties diversified across 22 markets and nine states. The portfolio’s eight national credit tenants include Walgreens, Dollar General, Kroger, and Fresenius Medical Care. ExchangeRight’s targeted initial cash flow to investors is 6.82% in the first year of ownership.
The portfolio closed with 10-year interest-only, non-recourse financing with a stated annual rate of 4.03% and a weighted-average lease term of 11.7 years. The offering is designed for investors seeking to participate in a 1031 tax-deferred exchange, as well as for investors who were seeking diversified portfolios of net-leased real estate on a cash basis.
“We are pleased with the successful capital raise on Net-Leased Portfolio 28, which was created to meet the needs facing investors at this period in the economic cycle,” said Warren Thomas, one of ExchangeRight’s managing members. “Net-Leased Portfolio 28 was created to provide 1031 and cash investors with stable cash flow and capital preservation designed to endure a recession and a long-term exit strategy to maximize their value and options upon an eventual sale.”
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 for 90 consecutive months to date.
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. The company strategically acquires and manages 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.