PASADENA, Calif. — ExchangeRight, one of the nation’s leading providers of diversified real estate DST and REIT investments, has announced that investors have fully subscribed its ExchangeRight All-Cash 3 DST, a debt-free portfolio of net-leased real estate backed by investment-grade companies operating in necessity-based retail industries. The $16.36 million offering has been structured to provide investors with monthly distributions starting at an annualized rate of 5.15% covered 100% by in-place revenues from the portfolio.
All-Cash 3 DST features net-leased properties tenanted by Daybreak Market, Dollar General, and Dollar Tree. The portfolio’s properties together span 26,511 square feet and are located in Florida and Texas, both non-income-tax states.
ExchangeRight All-Cash 3 DST’s exit strategy aims to provide investors with a tax-deferred cash-out refinance option in addition to the ability to complete a 1031 exchange, 721 exchange, cash out, or a combination of these options. Predicated upon successful future financing of the properties, ExchangeRight anticipates that investors will have the option to receive a portion of their initial investment using a tax-deferred cash-out refinance, with the potential to complete a tax-deferred 721 exchange of non-refinanced equity in a later transaction with an acquiring REIT. There is no guarantee that the DST’s exit strategy objectives will be achieved.
Warren Thomas, managing partner at ExchangeRight, shared that ExchangeRight continues to see sustained demand for the company’s All-Cash DSTs and moderate loan-to-value net-leased DSTs, all of which have been able to produce monthly cash flow at rates meeting or exceeding projections. Past performance is no guarantee of future results.
“Our commitment to protecting investors first and foremost is what makes us distinctive in the 1031/DST marketplace,” said Thomas. “Like all the offerings in our net lease platform, All-Cash 3 DST is designed with conservative underwriting and a focus on long-term net-leased properties backed primarily by investment-grade and historically recession-resilient tenants. This investor-centric strategy has helped us maintain our perfect track record of every offering paying monthly investor cash flow at or above original underwriting.” The past performance of ExchangeRight’s offerings, tenants, and cash flow is no guarantee of future results.
About ExchangeRight
ExchangeRight and its affiliates’ vertically integrated platform features more than $6 billion in assets under management that are diversified across over 1,200 properties, and 24 million square feet throughout 47 states, as of June 30, 2024. ExchangeRight pursues its passion to empower people to be secure, free, and generous by providing REIT, fund, and 1031 DST portfolios to accredited investors that target secure capital, stable income, and strategic exits. All of ExchangeRight’s offerings have historically met or exceeded investor projections since ExchangeRight’s inception. On behalf of more than 8,300 investors nationwide, the company structures and manages net-leased portfolios of assets backed primarily by investment-grade corporations that have successfully operated in the necessity-based retail and healthcare industries, as well as diversified value-add portfolios of inline and outparcel retail properties adjacent to strong-performing grocery tenants. Past performance does not guarantee future results. Please visit www.exchangeright.com for more information.
Media Contact
Lindsey Thompson
Senior Media Relations Officer
lthompson@exchangeright.com
(626) 773-3448