ExchangeRight, a sponsor of Delaware statutory trust and non-traded real estate investment trust investment offerings, has fully subscribed its All-Cash 5 DST. Now closed, the portfolio was structured to provide investors with monthly distributions starting at an annualized rate of 5.3% and covered 100% by in-place revenues from the offering.
The $18.33 million private placement offering was launched in May 2024. All-Cash 5 DST features four net-leased properties tenanted by GIANT Company, Dollar General, and Dollar Tree. The portfolio’s properties span 84,177 square feet and are located in Texas and Pennsylvania.
The All-Cash 5 DST exit strategy aims to provide investors a tax-deferred cash-out financing option, along with the potential to complete a 1031 or 721 exchange, cash out, or any combination of these options.
“Like all of our offerings, this portfolio is designed to protect investors’ capital to ensure their peace of mind through all economic cycles, including recessions and economic crises,” said Joshua Ungerecht, a managing partner at ExchangeRight.
Pending successful future financing, ExchangeRight anticipates investors may be able to receive part of their initial investment through a tax-deferred cash-out financing, with the possibility of a later 721 exchange of non-financed equity. There is no guarantee that the DST’s objectives will be achieved.
“Our debt-free portfolios are designed to meet investors’ need for stable income while providing enhanced optionality upon exit with access to ExchangeRight’s long-term aggregation strategy. With this offering we are pleased to have provided even more all-cash investors with tax-efficient passive income from national tenants successfully operating in necessity-based industries,” added Ungerecht.
According to the company, this is the fifth All-Cash DST it has fully subscribed since April. Previous reporting by The DI Wire has tracked the full subscriptions of Net-Leased Portfolio 66 DST in September, Net-Leased Portfolio 65 DST and All-Cash 3 DST in August, and All-Cash DST in May.
ExchangeRight reports that the company and its affiliates’ platform has more than $6.3 billion in assets under management that are diversified across more than 1,300 properties and over 25 million square feet across 47 states, as of Oct. 31, 2024. The company invests in net-leased properties in the “necessity-based” retail and healthcare industries, as well as value-add inline and outparcel retail spaces shadow-anchored by grocery tenants.
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