Rainier Exchange Portfolio I, DST

13760 Noel Road, Suite 800 Dallas, Texas 75240

Purchase Price: $5,999,596

Net Monthly Cash Rent: $41,843

  • Lease Start Date: 6/1/2009
  • Date Open: 1/25/2009
  • 6506 Alpine Road Loves Park, IL 13,225 Sq. ft.

Rainier Exchange Portfolio I, DST (the “Trust”) has been formed to acquire four recently constructed retail properties subject to existing long-term leases with CVS and existing long-term mortgage fi nancing with Wells Fargo Bank.

13760 Noel Road, Suite 800 Dallas, Texas

Investors seeking replacement property for a 1031 exchange can acquire benefi cial interests in the Trust and receive tax deferral and the benefi ts of property ownership.

OVERVIEW

Rainier Exchange Portfolio I, DST (the “Trust”) has been formed to acquire four recently constructed retail properties subject to existing long-term leases with CVS and existing long-term mortgage fi nancing with Wells Fargo Bank. Investors seeking replacement property for a 1031 exchange can acquire benefi cial interests in the Trust and receive tax deferral and the benefi ts of property ownership. The purchase price for each 1% interest in the Trust is $27,000 of cash and the assumption of $197,000 of debt, thereby providing signifi cant 1031 debt replacement for a relatively low cash investment. Designed particularly for those investors seeking basis replacement on relinquished property that was sold at a loss or is pending foreclosure, the Trust provides an alternative to paying taxes on a discontinued 1031 exchange without the substantial equity required for most new property investments. For a relinquished 1031 property providing no cash return, the following depicts the comparative up-front costs associated with discontinuing the exchange, buying replacement property and acquiring interests in the Trust.

THE PROPERTIES

Each property is a single-tenant, one-story commercial property operated as a CVS retail drugstore. The properties are each 100% leased to subsidiaries of CVS Caremark Corporation (“CVS”) pursuant to a 25 year triple-net lease. CVS has guaranteed the obligations of its subsidiaries pursuant to a separate guaranty for each of the leases. CVS is the nation’s largest provider of prescriptions and related healthcare services. CVS operates over 7,000 retail stores in 41 states and the District of Columbia. As of December 31, 2009, CVS had net income of $3.7 billion, total assets of $61.6 billion and shareholders’ equity of $35.8 billion. CVS is rated “BBB+” by Standard & Poors Financial Services LLC and Baa2 by Moody’s Investors Service Inc. CVS stock is publicly traded on the New York Stock Exchange under the ticker symbol “CVS.”

ACQUIRING A BENEFICIAL INTEREST IN THE TRUST

Interests in the Trust are designed for investors seeking replacement property for a 1031 exchange. Accordingly, prospective investors need to seek advice of their tax counsel and Qualifi ed Intermediary (QI). Because there are four properties to be acquired by the Trust, a 1031 investor must either (a) close on his or her acquisition of benefi – cial interests in the Trust within 45 days of the sale of the relinquished property, or (b) identify the Trust properties using the 200% Rule or 95% Rule. Importantly, investors who are subject to foreclosure of their to-be-relinquished property should discuss a deed-in-lieu of foreclosure with their existing lender and QI.

THE TRUSTEE

Rainier Exchange Portfolio Trustee, LLC, an affi liate of Rainier Capital Management, LP, an experienced investor in and operator of real estate properties and syndications, is the DST’s Trustee. Rainier Capital Management, LP is a Dallas, TX-based real estate investment banking fi rm providing customized debt and equity solutions to investors and real estate projects nationwide. Over the past six years Rainier has directed investments of more than $225 million into offi ce, retail, medical, multi-family and hotel assets. Today, Rainier provides asset management services to more than 2,600 investors with investments in properties valued at more than $1 billion across 24 different states. www.rainiercapital.com

THE ADVISOR

Net Lease Capital Advisors, LLC is a boutique real estate investment banking fi rm providing investment and advisory services including debt and equity placements, principal and joint venture investments, investment sales, structured tax solutions for property owners and sellers, and turn-key 1031 solutions. The advisory group of Net Lease Capital provides property, fi nancing and transaction structures to optimize fi nancial outcomes. The properties used are management free with investment grade credit tenants on long-term leases. Transaction structures can eliminate ongoing tax concerns, decrease valuation volatility, and off er easy exit strategies. Net Lease Capital is the nation’s leading expert in these areas, with over $5 billion of 1031 exchange transactions closed. www.netleasecapital.com

ABOUT RAINIER

13760 Noel Road, Suite 800 Dallas, Texas 75240 214.234.8200 Main 214.234.8201 Fax 866.RCM.8660 Toll Free
www.RainierCapital.com