ExchangeRight Net-Leased Portfolio 7 DST is a portfolio of sixteen single-tenant, longterm net-leased retail assets that are 100% leased to CVS/pharmacy, Advance Auto Parts, NAPA, O’Reilly Auto Parts, Dollar General, and Family Dollar. One of the properties is leased to CVS/pharmacy and is located in Beverly Hills, FL. One is leased to Advance Auto Parts and is located in Machesney Park, IL. One of the properties is leased to NAPA and is located in Orange Park, FL. One is leased to O’Reilly Auto Parts and is located in St. Augustine, FL. Eight of the properties are leased to Dollar General and are located in Richmond, VA; Toledo, OH (2); Kansas City, MO (2); Tulsa, OK; Petersburg, VA; and Ocala, FL. Four of the properties are leased to Family Dollar and are located in Cleveland, OH; Bethany, OK; Raleigh, NC; and Danville, VA. 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 $31,232,000, of which $14,330,000 is equity and $16,902,000 is longterm fixed-rate financing. The Trust closed on the portfolio of properties on September 24th, 2014, with 10-year fixed- non-recourse financing with an interest rate of 4.309% and 30-year amortization. The Offering’s projected cash flow as a percentage of equity for each year throughout the hold period is as follows: 7.75%, 7.75%, 7.75%, 7.75%, 7.77%, 7.80%, 7.89%, 7.91%, 7.91%, 8.11%.
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.