ExchangeRight Net-Leased Portfolio 14 DST is a portfolio of 17 single-tenant, long-term net-leased retail assets that are 100% occupied and operated by Advance Auto Parts, AthletiCo Physical Therapy, Dollar General, Fresenius Medical Care, MedSpring, NAPA Auto Parts, O’Reilly Auto Parts, 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:
- 34% pharmaceutical (Walgreens)
- 12% discount automotive (Advance Auto, NAPA Auto, and O’Reilly Auto Parts)
- 27% necessity health care (Fresenius Medical Care, MedSpring, and AthletiCo Physical Therapy)
- 20% discount necessity retail (Dollar General)
- 7% other (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: 6.57%, 6.58%, 6.60%, 6.68%, 6.75%, 6.91%, 6.95%, 6.95%, 7.08%, and 7.16%.
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.