ExchangeRight Closes $63.34M Net-Leased Portfolio 74 DST
Event summary
- ExchangeRight fully subscribed its $63.34M Net-Leased Portfolio 74 DST, a closed offering with no new investors accepted.
- The portfolio comprises 11 properties across 9 states, leased to necessity-based tenants like Tractor Supply and CVS.
- The deal includes $26.75M in non-recourse debt at a 42.23% LTV ratio, with a weighted-average lease term of 16.3 years.
- Investors receive monthly distributions at a 5.00% annualized rate, covered by in-place lease revenue.
The big picture
ExchangeRight's closure of this $63.34M portfolio underscores the continued appetite for net-leased real estate backed by necessity-based tenants. The deal reflects a broader industry trend toward long-term, stable income investments, particularly in sectors perceived as resilient to economic cycles. With over $7.7B in AUM, ExchangeRight's vertically integrated platform allows it to structure offerings with multiple exit strategies, appealing to investors seeking flexibility.
What we're watching
- Exit Strategy Viability
- Whether the portfolio's multiple exit options, including a potential acquisition by Essential Income REIT, will materialize as planned.
- Market Resilience
- How the recession-resilient tenants will perform in potential economic downturns.
- Investor Demand
- The pace at which ExchangeRight can fully subscribe future DST portfolios given the current market conditions.