PASADENA, Calif. — ExchangeRight has announced the full subscription of Net-Leased All-Cash 17 DST, adding to the growing acquisition pipeline for ExchangeRight’s Essential Income REIT. The $41.9 million portfolio of net-leased real estate, backed by historically recession-resilient tenants operating in necessity-based industries, provides investors with monthly distributions at a current rate of 5.15% covered entirely by in-place lease revenue. Net-Leased All-Cash 17 DST is a closed offering and is not accepting new investors.
The offering consists of six long-term net-leased properties tenanted by Sprouts Farmers Market, Tractor Supply Company, Hobby Lobby, WellMed, and Dollar Tree, with an initial weighted-average lease term of 14.1 years. The portfolio’s properties span 148,408 square feet across Texas, Illinois, and Ohio.
The Net-Leased All-Cash 17 DST exit strategy is structured to provide investors with a tax-deferred cash-out financing option, along with the potential to complete a 1031 exchange, a 721 exchange into the Essential Income REIT, cash out, or any combination of these options at exit. Pending successful future financing, the company intends to provide investors with the option to receive a tax-deferred lump sum payment of 20%+ of their initial investment through a cash-out financing, and a tax-deferred 721 exchange of the approximately 80% non-financed equity into the Essential Income REIT. There is no guarantee that the DST’s objectives, including its exit strategies, will be achieved.
“Our aggregation strategy is designed to leverage the synergies between our DST and REIT platforms to maximize value for our investors,” said Warren Thomas, managing partner at ExchangeRight. “By focusing on necessity-based retail and healthcare properties with primarily investment-grade tenants, All-Cash 17 DST investors can benefit from capital preservation and stable cash flow during the offering’s hold period. By later aggregating these rigorously selected properties into the more broadly diversified Essential Income REIT, we intend to provide reduced risk for DST investors as well as enhanced diversification, scale, and value for our REIT investors.”
Past performance is not a guarantee of future results.
