PASADENA, Calif. -- ExchangeRight has fully subscribed its $119 million Net-Leased Portfolio 31 DST offering. The portfolio is designed to generate stable income and protect capital by focusing on investment-grade quality tenants in the necessity-based retail and healthcare industries. Certain tenants of the portfolio include Hy-Vee, Giant Eagle, Dollar General, and CVS.
“When we founded ExchangeRight, we decided to focus on recession-resilient tenants with investment-grade credit operating in necessity retail and healthcare services, and we could not have chosen a better asset class to protect the capital that investors have entrusted to us during the COVID-19 pandemic,” said Warren Thomas, a managing member of ExchangeRight. “While more cities order nonessential businesses to close, the tenants in ExchangeRight’s offerings continue to be among the only companies allowed to stay open across an ever-growing number of areas across the United States. A number of ExchangeRight tenants are experiencing record-breaking demand for their essential products and services—the basic necessities and healthcare services that we need as a country.”
Net-Leased Portfolio 31 is strategically diversified across 24 markets, 6 recession-resilient industries, and 25 properties across 10 states, including Georgia, Illinois, Florida, and Texas. The offering launched in December 2019 and closed with 10-year interest-only, non-recourse financing with a stated annual rate of 3.49% and a weighted-average lease term of 13.9 years.
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. ExchangeRight’s current cash flow to investors is 6.76% with annual targeted increases given the portfolio’s leases that have contractual rent increases.
ExchangeRight and its affiliates’ platform is diversified across more than 675 properties of over 14 million square feet located throughout 38 different states. More than 3,100 investors have trusted ExchangeRight to manage their capital. In 2019, investors entrusted ExchangeRight and its sister company, Telos Capital, to manage an additional $428 million in equity, representing 53% year-over-year growth. All of the company’s current and past offerings have met or exceeded targeted cash flow distributions to investors for 93 consecutive months to date.
About ExchangeRight Real Estate, LLC
ExchangeRight is a vertically integrated real estate investment firm with over $2.6 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.