ExchangeRight Net-Leased Portfolio 15 DST is a portfolio of 16 single-tenant, long-term net-leased retail assets that are 100% occupied and operated by Advance Auto Parts, CVS, Dollar General, Family Dollar, Fresenius Medical Care, Goodwill, Hobby Lobby, Indianapolis Osteopathic Hospital, 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:
- 28% pharmaceutical (CVS and Walgreens)
- 26% other retail (Hobby Lobby and Goodwill)
- 22% discount dollar (Dollar General and Family Dollar)
- 16% necessity health care (Fresenius Medical Care and Indianapolis Osteopathic Hospital)
- 8% discount automotive (Advance Auto)
Annual Income Forecast
The Offering’s projected cash flow as a percentage of equity for each year throughout the hold period is as follows: 6.51%, 6.52%, 6.53%, 6.55%, 6.56%, 6.68%, 6.73%, 6.79%, 6.83%, and 7.03%.
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.