ExchangeRight Fully Subscribes $63.3M Net-Leased DST

ExchangeRight has fully subscribed Net-Leased Portfolio 74 DST, a $63.34 million offering holding 11 single-tenant retail properties across nine states. The offering provides monthly distributions at a current annualized rate of 5%, supported by in-place lease revenue.

The portfolio spans 11 markets in California, Iowa, Michigan, Mississippi, Nebraska, North Carolina, Ohio, Pennsylvania and Texas. Its properties are leased to national retailers including Tractor Supply Co., Dollar General, Dollar General Market and CVS Pharmacy, with a weighted-average remaining lease term of 16.3 years. The portfolio includes $26.75 million in non-recourse debt at a 42.23% loan-to-value ratio.

ExchangeRight designed the DST for a potential future acquisition by its Essential Income REIT. Targeted exit alternatives include a tax-deferred Section 721 exchange into the REIT, another Section 1031 exchange, a cash sale or a combination. Those outcomes are not guaranteed.

“Net-Leased Portfolio 74 continues our disciplined approach to building diversified portfolios of necessity-based real estate,” managing partner Joshua Ungerecht said.

The closing follows six other recently subscribed offerings. Pasadena, California-based ExchangeRight managed more than $7.7 billion across over 1,400 properties totaling 30 million square feet in 47 states as of July 31.

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