Net-Leased Portfolio 11 DST

Consistently Delivering Diversified portfolios of long-term

TOTAL OFFERING PRICE: $46,837,000

Equity Offering Amount : $21,825,000

  • Non-Recourse Debt: $25,012,000
  • offering loan to value (ltv): 53.40%
  • minimum purchase – 1031: $100,000
  • minimum purchase – cash: $25,000

ExchangeRight Net-Leased Portfolio 11 DST is a portfolio of seventeen single-tenant, long-term netleased retail assets that are 100% occupied by Advance Auto Parts, CVS/pharmacy, Dollar General, Family Dollar, Hobby Lobby, NAPA Auto Parts, Sherwin Williams, and Walgreens.

Consistently Delivering Diversified portfolios of long-term

Projected cash f lows and total yield are ultimately derived from, and dependent upon, the net lease payments of the tenants or their parent company guarantors.

highlights

ExchangeRight Net-Leased Portfolio 11 DST is a portfolio of seventeen single-tenant, long-term netleased retail assets that are 100% occupied by Advance Auto Parts, CVS/pharmacy, Dollar General, Family Dollar, Hobby Lobby, NAPA Auto Parts, Sherwin Williams, and Walgreens.

The portfolio comprises high-quality tenants, and has been diversified according to the following sector allocation (based on Year 1 net operating income):

  • 29% pharmacy (Walgreens, CVS/pharmacy)
  • 27% dollar stores (2/3 Dollar General,1/3 Family Dollar)
  • 22% auto stores (NAPA Auto Parts,Advance Auto Parts)
  • 22% other (Hobby Lobby, Sherwin-Williams)

property Details

CVS/pharmacy

CVS Health (NYSE: CVS) is a health care retailer based in the United States. It operates over 7,000 pharmacy and drug stores, and was ranked 12th on the Fortune 500 list in 2014. CVS Health consists of four divisions, which include CVS/pharmacy, CVS/caremark, CVS/specialty, and CVS/minuteclinic. CVS/pharmacy generates over 68% of CVS Health’s total revenue, with 7,458 retail pharmacy locations across 42 different states. CVS/caremark offers prescription benefit management services to over 2,000 health plans, and generates a net revenue of ~$37 billion. CVS/minuteclinic is the largest walk-in medical clinic in America. It operates in 570 locations across 26 different jurisdictions. CVS carries many of its own products, branded under CVS, Just the Basics, Essence of Beauty, Gold Emblem, Absolutely Divine, Blade, Earth Essentials, Caliber, and Life Fitness. It is also party to exclusive distribution contracts with Nuprin, Christophe, PreVentin-AT, 24/7, Skin Effects, and Lumene. CVS has achieved much of its growth through acquisition of other companies, including Clinton Drug and Discount Stores, Mack Drug, Peoples Drug, Revco, Eckerd, and Longs Drug Stores.

The Walgreen Company

The Walgreen Company (NYSE & NASDAQ: WBA) is the largest drug retailer in America. Walgreens employs approximately 248,000 people and operates 8,678 stores throughout the 50 states, Washington DC, Puerto Rico, and Guam. Walgreens’ products include over-the-counter medicine and consumer products, pharmacy services, and photo services. Walgreens has expanded through a series of strategic acquisitions. In March of 2011, Walgreens acquired Drugstore.com and Beauty.com. Two years later, Beauty.com was named by Internet Retailer Magazine in its Top 100 online retail sites list. In July 2012, Walgreens paid $6.7 billion for a 45% stake in Alliance Boots and acquired a drug store chain that included USA Drug, Super D Drug, May’s Drug, Med-X and Drug Warehouse. Walgreens also maintains a commercial book of pharmacy business through multiyear agreements with Express Scripts, Caremark, and other commercial payers. Walgreens was included in Fortune’s World’s Most Admired Companies list for the 20th consecutive year, and was ranked 37th overall in revenue on the Fortune 500 list of largest U.S.-based companies. Walgreens is actively pursuing innovative growth strategies involving cloud-based mobile phone and tablet-accessible services. In 2014 Walgreens purchased the remaining 55% stake in Switzerlandbased Alliance Boots that it did not already own. A new holding company was created that now trades as WBA on the NYSE and NASDAQ exchanges in lieu of the previous
WAG ticker. In October 2015 WBA announced its impending acquisition of rival R ite Aid for $17.2 billion.

Sherwin-Williams (NYSE: SHW)

Sherwin-Williams (NYSE: SHW) is a Fortune 500 company founded in 1866. It manufactures, distributes, and sells paints, coatings, and related products throughout the Americas and Europe. It is the largest coatings manufacturer in the United States and the third largest in the world, operating facilities in well over 100 countries. Cash from operations surpassed $1 billion for the second straight year, which helped fund share repurchases totaling $1.7 billion during the year.

ABOUT Exchange Right

ExchangeRight is committed to providing long-term, stable income and asset preservation to accredited 1031 and 1033 investors. Our goal is to consistently deliver 1031-exchangeable DST portfolios of long-term, net-leased properties backed by investment grade corporations. We target corporate tenants that successfully operate in the necessity retail space to provide investors with stable and predictable income. ExchangeRight’s long-term exit strategy is to provide greater diversification and value to investors by combining multiple portfolios of investment grade, net-leased assets in a portfolio sale or 721 exchange roll-up.

ExchangeRight launched its 1031-exchangeable DST multifamily platform in 2015 targeting Class B apartments with stable income and value-added upside potential. Our multifamily offerings feature strong cash flow, high debt coverage ratios, conservative underwriting, long-term fixed-rate financing, and the potential to enhance return with value-added strategies.

ExchangeRight also raises limited preferred equity capital that allows accredited investors to participate in the cash flow and profits of our 1031 platform. This preferred equity is used alongside ExchangeRight’s capital to invest in the acquisition and inventorying of individual net-leased assets prior to their being structured in DST portfolios for offering to exchange investors. These preferred equity funds can provide investors with enhanced liquidity and short-term returns, and exit options with each DST portfolio disposition.