ExchangeRight Net-Leased Portfolio 73 DST
Limited Availability
Overview
ExchangeRight Net-Leased Portfolio 73 is a diversified portfolio of properties with net leases backed by historically recession-resilient tenants, with a 5.00% 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 Portfolio 73’s exit strategy is intended to capitalize on ExchangeRight’s REIT platform and aggregation strategy by having the REIT platform acquire the DST interests. The strategy prioritizes capital preservation, stable monthly income, and ongoing tax deferral to investors through the Section 721 tax-deferred exchange. In addition to the primary goals noted above, the Sponsor targets to provide individual Owners with the following exit options: (1) complete a Section 721 Exchange into the Essential Income REIT, (2) complete a Section 1031 Exchange, (3) cash out (not tax-deferred); or (4) any combination of the above exit options. This strategy is intended to capitalize on ExchangeRight’s aggregated portfolio by providing additional diversification by property, location, tenant, industry, lease term, and debt term to investors.
Key Investment Features
Structure
Delaware Statutory Trust (DST)
Investment Sponsor
ExchangeRight
Property Type(s)
Retail, NNN
Location(s)
CO, WI, NY, KY, ID, NJ
Occupancy
100%
721 Exchange / UPREIT
Optional
Minimum Investment
$100,000
Investment Strategy
Buy & Hold
Year 1 Yield
5.00%
In-Place Loan
43.84% LTV
Avg. Remaining Lease Term
13.8 Years
Cash Flow Forecast
Year 1
Year 2
Year 3
Year 4
5.00%
5.04%
5.06%
5.12%
Year 5
Year 6
Year 7
Year 8
5.18%
Sold
Sold
Sold
Year 9
Year 10
Sold
Sold
Investment Highlights
Each site is positioned along a primary commercial corridor with strong visibility and convenient regional access.
The properties are modern or well-maintained, single-tenant buildings designed to meet national tenant prototype standards.
All assets offer ample on-site parking, functional layouts, and building configurations that support long-term tenant operations and re-tenanting flexibility.
The portfolio is located in a mix of stable and steadily growing regional markets supported by diversified local economies.
Limited new retail construction in several submarkets supports strong occupancy and sustained performance for essential-goods and service-based tenants.
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.
Weaknesses
Flatter distributions.
Mostly small markets, unimpressive demographics overall.
Can only have a small amount of appreciation before 721 conversions.