ExchangeRight Takes Twenty-Third Portfolio Full Cycle

March 23, 2022 at 09:00 AM EDT

ExchangeRight, one of the nation’s leaders in diversified real estate investments and strategies, announced that it has completed its 23rd full-cycle event with the sale of its Net-Leased Portfolio 16 DST, providing investors with total returns on sale including cash flow ranging from 134 to 143 percent while maintaining uninterrupted monthly distributions and meeting cash flow projections.

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Tenants of Properties in ExchangeRight's Full Cycle Net-Leased Portfolio 16 DST (Photo: Business Wire)

The portfolio was made up of 19 net-leased properties tenanted by Dollar General, Walgreens, Advance Auto Parts and Tractor Supply, as well as other essential businesses. The retail properties spanned 261,872 square feet across nine states.

ExchangeRight provided investors in the portfolio the option to perform another 1031 exchange, receive cash, complete a tax-deferred 721 exchange, or a combination of these options. For investors who chose to complete a tax-deferred 721 exchange into the acquiring REIT, the total return on sale including cash flow was equivalent to approximately 143 percent of initial capital investment based on an independent KPMG valuation of the acquiring portfolio as of December 31, 2021. For investors who chose to cash out or complete a 1031 exchange with their proceeds, including cash flow the Net-Leased Portfolio 16 DST total return on sale was approximately 134 percent of initial capital investment.

“Once again, we have enhanced investors’ returns, liquidity and optionality with another successful full-cycle event,” said Warren Thomas, a managing partner of ExchangeRight. “Our strategy of acquiring primarily investment-grade tenants occupying net-leased properties continues to be a successful way to build portfolios that maintain and grow investor wealth. This approach has provided returns that meet or exceed projections, empowering our investors with cash flows among the highest in the industry.”

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.