ExchangeRight Net-Leased Portfolio 6 DST is a portfolio of single-tenant, long-term net-leased retail assets that are 100% leased to Advance Auto Parts, AutoZone, CVS/pharmacy, Dollar General, Dollar Tree, Family Dollar, and Tractor Supply Co. One of the properties is leased to Advance Auto Parts and is located in San Angelo, TX. One property is leased to AutoZone, and is located in Tampa Bay, FL. One property is leased to CVS/pharmacy, and is located in Bessemer, AL. Eight are leased to Dollar General, and are located in Baton Rouge, LA; Birmingham, AL; Cleveland, OH; Cuyahoga Falls, OH; Gulfport, MS; Lafayette, LA; Lakeland, FL; and Westwego, LA. Finally, one property is leased to Tractor Supply Co., and is located in Denham Springs, LA. 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 $33,743,322, of which $15,735,000 is equity and $18,008,322 is long-term fixed-rate financing. The Trust closed on the portfolio of properties on May 9th, 2014, with 10-year fixednon- recourse financing with an interest rate of 4.79% and an average debt coverage ratio of 2.48 throughout the hold period. Not including additional reserves, the Offering’s projected cash flow for each year throughout the hold period is as follows: 7.51%, 7.51%, 7.51%, 7.51%, 7.61%, 7.83%, 7.87%, 7.87%, 7.90%, and 8.16%.
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.