ExchangeRight’s Latest Full-Cycle Event Achieves 157-163% Returns for Investors Including Return of Capital
January 6, 2022 | ExchangeRight
ExchangeRight brought its $23 million Net-Leased Portfolio 5 DST full cycle on behalf of its investors. In connection with the closing, ExchangeRight provided the investors in the portfolio with the option to perform another 1031 exchange, receive cash, complete a tax-deferred 721 exchange, or a combination of these options.
Net-Leased Portfolio 5 generated 157.08% total returns including return of capital for investors who chose to cash out or complete a 1031 exchange with their proceeds. For investors who chose to complete a tax-deferred 721 exchange into the acquiring REIT, the portfolio generated 163.48% total returns including return of capital for investors based on an independent KPMG valuation of the acquiring portfolio as of June 30, 2021.
Net-Leased Portfolio 5 provided uninterrupted monthly distributions to its investors over the offering’s entire hold period, meeting projected cash flow targets throughout. The portfolio was diversified across 7 states and featured 14 properties spanning 118,624-square-feet, with net leases backed by Advance Auto Parts, AutoZone, Dollar General, Dollar Tree, Family Dollar, Sherwin-Williams, and The Christ Hospital.
“We are pleased to advance our long-term aggregated exit strategy with another DST that was focused on essential businesses and that was designed to protect and grow investor wealth,” said Warren Thomas, a managing partner of ExchangeRight. “We have once again expanded our platform, which allows us to enhance value for our investors and further strengthen our position to execute a public market exit in the future. We are deeply grateful to the investors, representatives, and advisors who engage with our platform and join us in celebrating this achievement.”
ExchangeRight and its affiliates’ vertically integrated platform features over $4.5 billion in assets under management, diversified across over 1,000 properties, over 18 million square feet, and throughout 43 states. More than 6,100 investors have trusted ExchangeRight to manage their capital. All of the company’s current and past offerings have met or exceeded targeted cash flow distributions to investors since the company’s founding.
About ExchangeRight
ExchangeRight pursues its passion to empower people to be secure, free, and generous by providing REIT, fund, and 1031 DST portfolios that target secure capital, stable income, and strategic exits. The company strategically syndicates net-leased portfolios of assets backed primarily by investment-grade corporations that successfully operate in the necessity-based retail and healthcare industries, as well as diversified value-add portfolios of inline and outparcel retail spaces shadow-anchored by strong-performing grocery tenants. Please visit www.exchangeright.com for more information.
Media Contact
Lindsey Thompson
lthompson@exchangeright.com
(626) 696-2919
