ExchangeRight Fully Subscribes $25M, 5-Property Net-Leased DST
ExchangeRight has fully subscribed its $25 million Net-Leased All-Cash 15 DST, in what has already been a strong year for the firm’s Delaware statutory trust platform. The offering, which is now closed to new investors, expands the pipeline of assets slated for ExchangeRight’s Essential Income REIT, a strategy focused on necessity-based, net-leased real estate backed primarily by investment-grade tenants.
The portfolio consists of five long-term, net-leased properties tenanted by Hobby Lobby, Dollar Tree, NAPA Auto Parts, Dollar General, and Dollar General Market. Collectively spanning 103,367 square feet across Texas, Iowa, North Carolina, and Louisiana, the assets carry a weighted-average lease term of 13.4 years. Investors in the DST receive a 5.20% annualized monthly distribution, fully supported by in-place revenues.
A key feature of the offering is its flexible, tax-efficient exit strategy. Investors may choose between a 1031 exchange, a tax-deferred 721 exchange into the Essential Income REIT, a cash-out financing option, or a blended approach.
Following future financing, ExchangeRight plans to offer investors the opportunity to receive a tax-deferred lump-sum cash-out exceeding 20% of initial investment, with the remaining equity eligible for a tax-deferred 721 exchange into the REIT.
“We continue to design 100% equity offerings built for stability and long-term growth, guided by our investor-centric approach,” said Joshua Ungerecht, managing partner at ExchangeRight. “Our All-Cash DST portfolios are structured to meet investors’ needs while providing tax-deferred access and increasing diversification for our best-in-class REIT platform.”
The close of All-Cash 15 adds to a string of recent fully subscribed offerings, including the $28.85 million Essential Income 4 DST, $23.3 million Net-Leased All-Cash 14 DST, $41.4 million All-Cash 12, $62 million Portfolio 69, $111 million Portfolio 68, among others.
Based in Pasadena, ExchangeRight and its affiliates manage a vertically integrated platform with over $6.9 billion in assets under management across 1,400+ properties and 27 million square feet spanning 48 states,
Pictured: Tenants occupying properties in ExchangeRight’s Net-Leased All-Cash 15 DST.
