Net-Leased Portfolio 9 DST

Consistently Delivering Diversified portfolios of long-term

TOTAL OFFERING PRICE: $47,393,669

Equity Offering Amount : $21,875,000

  • Non-Recourse Debt: $25,518,669
  • offering loan to value (ltv): 53.84%
  • minimum purchase – 1031: $100,000
  • minimum purchase – cash: $25,000

ExchangeRight Net-Leased Portfolio 9 DST is a portfolio of twenty two single-tenant, longterm net-leased retail assets that are 100% leased to Advance Auto Parts, AutoZone, CVS/pharmacy, Dollar General, Hobby Lobby, NAPA Auto Parts, and TCF National Bank.

Consistently Delivering Diversified portfolios of long-term

This material must be accompanied or preceded by a private placement memorandum, which is the controlling disclosure document for the Offering and is intended to more fully disclose the potential benefits and risks of the Offering.

Underwriting Highlights

ExchangeRight Net-Leased Portfolio 9 DST is a portfolio of twenty two single-tenant, longterm net-leased retail assets that are 100% leased to Advance Auto Parts, AutoZone, CVS/pharmacy, Dollar General, Hobby Lobby, NAPA Auto Parts, and TCF National Bank. Four of the properties are leased to Advance Auto Parts and are located in Avon, OH; Eau Claire, WI; Mount Joy, PA; and Natrona Heights, PA. Four are leased to AutoZone and are located in San Antonio, TX; Sumter, SC; Clarksville, TN; and Spring Hill, TN. One of the properties is leased to CVS/pharmacy and is located in Houston, TX. 

Nine are leased to Dollar General and are located in Pine Bluff, AR; Burlington, NC; Toledo, OH; Fort Smith, AR; Boiling Springs, SC; Pensacola, FL; Marion, OH; Conway, AR; and Sheffield Lake, OH. One is leased to Hobby Lobby and is located in Statesville, NC. Two of the properties are leased to NAPA Auto Parts and are located in Racine, WI and Kenosha, WI. The final property is leased to TCF National Bank in Kenosha, WI. The Sponsor of the Offering is retaining at least a 1% ownership interest in the portfolio and is offering up to 99% of the beneficial interests in the DST to accredited investors.

*$165,776.17 of initial reserves have been funded at the time of the loan closing. As a part of the total ongoing reserve numbers, we are reserving $9,600 in annual ongoing reserves over and above the lender required amounts on the investors’ behalf.

**Asset Management Fees include Annual DST Trustee Fee and Accounting.

***These are estimated costs for bank setup and ongoing fees, tax filing preparation and various entity filing costs associated with the portfolio.

 

property Details

CVS/pharmacy

CVS Health (NYSE: CVS) is a health care retailer based in the United States. It operates over 7,000 pharmacy and drug stores, and was ranked 12th on the Fortune 500 list in 2014. CVS Health consists of four divisions, which include CVS/pharmacy, CVS/caremark, CVS/specialty, and CVS/minuteclinic. CVS/pharmacy generates over 68% of CVS Health’s total revenue, with 7,458 retail pharmacy locations across 42 different states. CVS/caremark offers prescription benefit management services to over 2,000 health plans, and generates a net revenue of ~$37 billion. CVS/minuteclinic is the largest walk-in medical clinic in America. It operates in 570 locations across 26 different jurisdictions. CVS carries many of its own products, branded under CVS, Just the Basics, Essence of Beauty, Gold Emblem, Absolutely Divine, Blade, Earth Essentials, Caliber, and Life Fitness. It is also party to exclusive distribution contracts with Nuprin, Christophe, PreVentin-AT, 24/7, Skin Effects, and Lumene. CVS has achieved much of its growth through acquisition of other companies, including Clinton Drug and Discount Stores, Mack Drug, Peoples Drug, Revco, Eckerd, and Longs Drug Stores.

TCF Bank

TCF Financial Corporation is the holding company for TCF Bank. TCF has over $19 billion in assets, and over 430 branches throughout the United States, which offer personal and commercial products including checking, savings, and money market accounts, CDs, retirement savings accounts, loans for home purchases and improvement, debt consolidation, real estate investment, and business activities. To adapt to today’s regulatory environment, TCF has diversified its lending platforms and increased its originations by 12.2% in 2014, resulting in a total of $13.5 billion in loans and leases. This further diversifies TCF’s income through sales and servicing fees reducing its reliance on banking fees. It also adds high-yield, high-quality assets to its balance sheet, introduces diversification across type of credit, geography, industry, product, and collateral, and enables TCF to potentially reduce risk through active management of loan concentrations.

Advance Auto Parts Inc. (NYSE: AAP)

Advance Auto Parts Inc. (NYSE: AAP) is an aftermarket retailer of automotive parts, supplies, and maintenance services. It operates nearly 4,000 and employs about 55,000 team members. Many products include a “good, better, best” recommendation, and Team Members have access to a system to help customers choose the best product; this embodies Advance Auto Parts’ promise, “Service is our best part.”

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.

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