Net-Leased Portfolio 13 DST

Consistently Delivering Diversified portfolios of long-term

TOTAL OFFERING PRICE: $50,300,000

Equity Offering Amount : $25,815,000

  • Non-Recourse Debt: $24,485,000
  • offering loan to value (ltv): 48.68%
  • minimum purchase: $100,000
  • year 1 investor cash flow: 6.80%

ExchangeRight Net-Leased Portfolio 13 DST is a portfolio of twenty single-tenant, long-term net-leased retail assets that are 100% occupied and operated by Advance Auto Parts, CVS, Dollar General, Family Dollar, Hobby Lobby, NAPA Auto Parts, Sherwin Williams, Tractor Supply, and Walgreens.

Consistently Delivering Diversified portfolios of long-term

The portfolio is composed of high-quality tenants with strong credit and provides the investor with access to a diversified portfolio. First year net operating income is diversified as follows: 37% pharmaceutical and necessity health care.

highlights

ExchangeRight Net-Leased Portfolio 13 DST is a portfolio of twenty single-tenant, long-term net-leased retail assets that are 100% occupied and operated by Advance Auto Parts, CVS, Dollar General, Family Dollar, Hobby Lobby, NAPA Auto Parts, Sherwin Williams, Tractor Supply, and Walgreens.

The portfolio is composed of high-quality tenants with strong credit and provides the investor with access to a diversified portfolio. First year net operating income is diversified as follows:

  • 37% pharmaceutical and necessity health care (CVS and Walgreens)
  • 8% discount automotive (Advance Auto and NAPA Auto)
  • 27% discount necessity retail (Dollar General and Family Dollar)
  • 28% other (Hobby Lobby, Sherwin Williams, and Tractor Supply)

Annual Income Forecast
The Offering’s projected cash flow as a percentage of equity for each year throughout the hold period is as follows: 6.80%, 6.80%, 6.80%, 6.80%, 6.82%, 6.92%, 6.92%, 6.92%, 6.93%, and 7.05%.

Exit Strategy
We designed our exit strategy with the goal of providing investors stable cash flow and value-added returns. We believe this is best achieved by aggregating our net-leased portfolios together to be sold, acquired, or listed in the public markets. Combining portfolios helps mitigate lease and debt rollover risk through scale and diversification. Bringing the larger, aggregated portfolio to the public markets aims to capitalize on the premium typically paid for liquidity, diversification, and convenience. This strategy is anticipated to provide investors with the opportunity to sell and perform another 1031 exchange or exchange their DST interests for ownership in a REIT under IRC section 721 in a REIT sale, merger, IPO, or public listing.

*$445,000 of initial tax reserves and reserves for operations and repairs have been funded at the time of the loan closing. 
**Asset Management Fees include Annual DST Trustee Fees.

The CVS, Dollar General, and Family Dollar leases are guaranteed by the full faith and credit of the respective Tenants’ parent corporations (CVS Caremark Corporation; Dollar General Corporation and Family Dollar Stores, Inc., respectively). The Advance Auto Parts, Motor Parts and Equipment Corporation (“NAPA”), Sherwin Williams, Tractor Supply, Hobby Lobby, and Walgreen leases are entered into directly with, or with nexus to, the respective parent corporations. ExchangeRight NLP13 Master Lessee, LLC is entirely dependent upon the ongoing contractual rent payments of the above-listed tenants to make Master Lease payments and meet its obligations under the Master Lease. 

Investing in this offering involves risk. Please review the Private Placement Memorandum in its entirety, including especially the section that outlines the risks of this offering, before making any investment decision.

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.