ExchangeRight Fully Subscribes $82.3 Million DST Offering

ExchangeRight, a Pasadena, Calif.-based sponsor of Delaware statutory trust and non-traded real estate investment trust investment offerings, has fully subscribed its Net-Leased Portfolio 65 DST – structured to provide monthly distributions with a current annualized rate of 5%.

At nearly $82.3 million, the DST offering features more than 415,000 square feet of space for tenants operating in necessity-based industries.

“We remain committed to working with representatives and advisers to provide offerings that are structured to preserve their clients’ capital and provide them with stable, passive income, even through economic volatility,” said Joshua Ungerecht, a managing partner at ExchangeRight.

The DST was launched Oct. 30, 2023, with an approximate 40.2% loan-to-value and non-recourse interest-only financing at a fixed rate of approximately 5.8% over a five-year term. The offering contains 13 properties diversified across 10 states and five historically recession-resilient tenants, including FedEx, Tractor Supply, Dollar General, Dollar Tree, and Family Dollar.

“As increasingly more investors are continuing to transition from active to passive real estate investments, we are pleased to help meet that need with a 1031-compatible offering designed to protect investors from economic volatility and recession. Like all our net-leased offerings since inception, Net-Leased Portfolio 65 has delivered the stable monthly cash flow that investors need on time, every month, meeting or exceeding projected distributions,” added Ungerecht.

Earlier this month, the company fully subscribed its ExchangeRight All-Cash 3 DST, nearly $16.4 million offering. In May 2024, it fully subscribed its $6.3 million ExchangeRight All-Cash DST, a debt-free portfolio of net-leased real estate backed by investment-grade companies operating in necessity-based retail industries. And in April, it fully subscribed Net-Leased Portfolio 64 DST, an $89.2 million private placement offering.

ExchangeRight reports that the company and its affiliates’ platform has more than $6 billion in assets under management that are diversified across more than 1,200 properties and over 24 million square feet across 47 states, as of July 31, 2024. The company invests in net-leased properties in the “necessity-based” retail and healthcare industries, as well as value-add inline and outparcel retail spaces shadow-anchored by grocery tenants.

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