Net-Leased Portfolio 18 DST

Consistently Delivering Diversified portfolios of long-term

TOTAL OFFERING PRICE: $62,176,294

Equity Offering Amount : $28,735,000

  • Non-Recourse Debt: $33,441,294
  • offering loan to value (ltv): 53.78%
  • minimum purchase: $100,000
  • year 1 investor cash flow:6.62%

ExchangeRight Net Leased Portfolio 18 DST is a portfolio of 17 single-tenant, long-term net-leased retail assets that are 100% occupied and operated by Advance Auto Parts, CVS Pharmacy,

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: 43.0% Pharmaceutical (CVS, Walgreens)

highlights

ExchangeRight Net Leased Portfolio 18 DST is a portfolio of 17 single-tenant, long-term net-leased retail assets that are 100% occupied and operated by Advance Auto Parts, CVS Pharmacy, Dollar General, Fresenius Medical Care, Hobby Lobby, NAPA 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 perating income is diversified as follows:

  • 43.0% Pharmaceutical (CVS, Walgreens)
  • 18.0% Discount Necessity Retail (Dollar General)
  • 13.9% Necessity Farming (Tractor Supply)
  • 10.9% Other Discount Retail (Hobby Lobby)
  • 8.0% Discount Automotive (NAPA, Advance Auto)
  • 6.2% Necessity Health Care (Fresenius Medical Care)

Annual Income Forecast
The Offering’s projected cash flow as a percentage of equity
for each year throughout the hold period is as follows:
6.62%, 6.64%, 6.65%, 6.67%, 6.68%, 6.90%, 6.94%,
6.96%, 6.98%, 7.02%.

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.

*$710,000 of initial tax and insurance prepaids and reserves, and reserves for operations and repairs have been funded at the time of the loan closing. In addition, $825,000 has been initially funded in a rollover reserve with lender for future tenant improvement and leasing commissions, bringing total prepaids and reserves to $1,535,000 at closing. The DST is additionally reserving $32,060 per year to provide additional operational reserves for the benefit of the trust, which is reflected in the ongoing reserve figures presented above.

The following leases were entered into directly with the tenants’ parent entities or are directly guaranteed by the tenants’ parent entities which have an nvestment-grade rating with Standard & Poor’s or Moody’s: Advance Auto Parts, CVS Pharmacy, Dollar General, and Walgreens.

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.