ExchangeRight Takes 34th Offering Full Cycle

ExchangeRight announced the completion of its 34th full-cycle event with the acquisition of Net-Leased Portfolio 28 DST’s 23-property portfolio by the company’s Essential Income REIT.

This is the 22nd net-leased portfolio ExchangeRight has brought full cycle on behalf of investors as part of the company’s aggregation strategy, extending its track record of meeting or exceeding return projections for all completed ExchangeRight offerings since inception.

In connection with closing, ExchangeRight provided investors multiple exit options, with total net annual returns to investors ranging from 6.96% to 9.02%, representing 134.57% to 147.67% total returns including return of capital.

Net-Leased Portfolio 28 DST investors were able to elect to complete a tax-deferred 721 exchange into the REIT, perform another 1031 exchange, receive cash on a non-tax-deferred basis, or any combination of these options.

ExchangeRight’s full-cycle net lease offerings have produced an average annual return on investment of 7.40% to 8.87% for 1031 and cash investors and 8.43% to 10.01% for 721 exchange investors.

The acquired portfolio’s 23 properties are diversified across 22 markets spanning 482,287 square feet in nine states, and are occupied by Tractor Supply, Dollar General, Pick ‘n Save, and Hobby Lobby.

“This is another example of how, by beginning with the end in mind, we have been able to benefit the investors in both ExchangeRight’s DST platform and REIT platform with the premium generated by the aggregation of high-quality net-leased assets,” said Joshua Ungerecht, a managing partner at ExchangeRight.

Pasadena-based ExchangeRight and its affiliates’ vertically integrated platform features over $6.3 billion in assets under management diversified across more than 1,300 properties, and 25 million square feet throughout 47 states, as of October 31, 2024.