NET-Leased Portfolio 23 DST

Consistently Delivering Diversified portfolios of long-term

TOTAL OFFERING PRICE: $94,235,200

Equity Offering Amount : $42,800,000

ExchangeRight Net Leased Portfolio 23 DST is a portfolio of 23 single-tenant, long-term net-leased retail assets that are 100% occupied and operated by Advance Auto Parts, Auto Zone, Dollar General, Family Dollar, GIANT Food, 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:38.5% Pharmaceutical (Walgreens)

highlights

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:

38.5% Pharmaceutical (Walgreens)
21.3% Grocery (GIANT Food)
19.7% Discount Necessity Retail (Dollar General,Family Dollar)
11.4% Discount Auto (Advance Auto, Auto Zone)
9.1% Agriculture (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: 6.30%, 6.30%, 6.30%, 6.34%, 6.36%, 6.37%, 6.39%, 6.39%, 6.40%, 6.45%.

Exit Strategy
At ExchangeRight, our offerings are not overly dependent on any one property, location, tenant, lease, industry, debt term, or sale period for their cash flow and value. In preparation for the next recession, we designed our strategy with significant diversification and scale, which enables us to:

pay stable cash flow through economic cycles, real estate market cycles, debt maturities, and lease rollovers
provide downside protection by diversifying across properties, tenants, and industries that are less dependent on economic growth to perform well when inevitable risks assail the markets
maintain significant flexibility and control to maximize investor returns
safeguard investors from being forced to sell before the time is right
preserve investors’ ability to complete a 1031 exchange upon exit

* $1,110,000 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, $500,000 has been initially funded in a rollover reserve with lender for future tenant improvement and leasing commissions, bringing total prepaids and reserves to $1,610,000 at closing. The DST is additionally reserving $26,529 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 investment-grade rating with Standard & Poor’s or Moody’s: Advance Auto Parts, AutoZone, Dollar General, Family Dollar, GIANT Food Store, and Walgreens.

Investing in this offering involves risk. Please review the Private Placement Memorandum in its entirety, including especially the section that outlines the risks of his 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.