ExchangeRight Net-Leased Portfolio 5 DST is a portfolio of single-tenant, long-term net-leased retail and medical office assets that are 100% leased to Advance Auto Parts, AutoZone, The Christ Hospital,Dollar General, Family Dollar, and Sherwin-Williams. Two of the properties are leased to Advance Auto Parts and are located in Braselton, GA, and Kenosha, WI. One of the properties is leased to AutoZone and is located in Carpentersville, IL. One is leased to The Christ Hospital in Cincinnati, OH. Four are leased to Dollar General and are located in Cleveland, OH; Columbus, GA; Elyria, OH; and Auburn, AL. Five are leased to Family Dollar and are located in Summit, IL; Birmingham, AL; Palm Harbor, FL; Amarillo, TX; and Dallas, TX. The final asset is leased to Sherwin-Williams and is located in Lima, OH. The Sponsor of the Offering is retaining at least a 2% ownership interest in the portfolio and is offering up to 98% of the beneficial interests in the DST to accredited investors.
The total Offering amount is $23,470,000, of which $11,980,000 is equity and $11,490,000 is long-term fixed-rate financing. The Trust closed on the portfolio of properties on February 4th, 2014, with 10-year fixednon- recourse financing with an interest rate of 4.905% and 30-year amortization. Not including principal amortization, the Offering’s projected cash flow for each year throughout the hold period is as follows: 7.50%, 7.51%, 7.52%, 7.53%, 7.54%, 7.56%, 6.24%, 6.26%, 6.29%, 6.32%.
This Offering is designed for investors seeking to participate in a 1031 tax-deferred exchange as well as investors seeking a diversified net-leased real estate investment on a cash basis. Investors completing a 1031 exchange may invest for a minimum of $100,000; investments made on a cash basis are subject to a $25,000 minimum investment.