ExchangeRight Net-Leased All-Cash 18 DST
Limited Availability
Overview
ExchangeRight Net-Leased All-Cash 18 DST is a debt-free offering of net-leased real estate backed by historically recession-resilient tenants, with a 5.15% current cash flow from in-place lease revenue. The portfolio is focused on properties that are leased to national tenants successfully operating in necessity-based industries.
Net-Leased All-Cash 18’s exit strategy is intended to capitalize on ExchangeRight’s REIT platform and aggregation strategy by having the REIT platform acquire the DST interests and providing investors with the option to 1) complete another Section 1031 Exchange, 2) participate in a tax-deferred cash-out financing targeting 20% of their total investment value to be distributed as financing proceeds and an exchange of the remaining equity interests under Section 721 of the Code, 3) participate in a tax-deferred exchange of their DST interests for ownership in an operating partnership of a REIT under Section 721 of the Code, 4) take all of their cash out on a non-tax-deferred basis, or 5) any combination of the above options. This strategy is intended to maximize value for DST owners by taking advantage of ExchangeRight’s aggregated portfolio and providing investors electing to perform a 721 exchange with additional diversification by property, location, tenant, industry, lease term, and debt term.
Key Investment Features
Structure
Delaware Statutory Trust (DST)
Investment Sponsor
ExchangeRight
Property Type(s)
Retail, NNN
Location(s)
MI, GA, AL, TX, FL
Occupancy
100%
721 Exchange / UPREIT
Optional
Minimum Investment
$100,000
Investment Strategy
Buy & Hold
Year 1 Yield
5.15%
In-Place Loan
No Loan; All-Cash
Avg. Remaining Lease Term
12 Years
Cash Flow Forecast
Year 1
Year 2
Year 3
Year 4
5.15%
5.19%
5.22%
5.25%
Year 5
Year 6
Year 7
Year 8
5.30%
5.42%
5.46%
5.49%
Year 9
Year 10
5.52%
5.58%
Investment Highlights
All assets are located on established retail corridors with complementary big-box and service retailers
Newer construction single-tenant buildings (2017–2025)
Long-term net leases with a weighted-average remaining lease term of about 12 years
The portfolio targets necessity-based, recession-resilient retail and healthcare demand in growing suburban corridors
Exposure to multiple states and markets can help diversify regional economic and demand risk
Advantages
ExchangeRight was formed in 2012, has $5.6+ Billion of assets under management, invested in 1,200+ properties across 47 states
All of ExchangeRight’s full-cycle offerings have met or exceeded projected returns.
All of ExchangeRight’s active offerings are meeting or exceeding investor cash flow distributions.
Diversification across multiple states and good average lease duration of 12 years.
Weaknesses
Flatter distributions.
Only 2 different tenants
Can only have a small amount of appreciation before 721 conversions.