Demand for Stable Debt-Free Offerings Drives Full Subscription of ExchangeRight’s All-Cash DST

Sustained demand for stable all-cash offerings has driven the full subscription of ExchangeRight’s All-Cash DST, offering net-leased real estate occupied by necessity-based retail tenants with monthly distributions at 5.00%

May 17, 2024

This article was originally published on ExchangeRight by Lindsey Thompson.

PASADENA, Calif. – ExchangeRight, one of the nation’s leading providers of diversified real estate DST and REIT investments, has announced the company has fully subscribed its ExchangeRight All-Cash DST, a debt-free portfolio of net-leased real estate backed by investment-grade companies operating in necessity-based retail industries. The offering has been structured to provide investors with monthly distributions currently at an annualized rate of 5.00% from in-place revenue. All-Cash DST is a closed offering and is not accepting new investors.

The All-Cash DST features net-leased properties tenanted by Tractor Supply and a Family Dollar/Dollar Tree combo store. The portfolio’s properties together span 30,083-square-feet and are located in Abilene and Sweetwater, Texas, a non-income-tax state.

ExchangeRight All-Cash DST’s exit strategy aims to provide investors with a cash-out refinance option in addition to the ability to complete a 1031 exchange, 721 exchange, cash out, or a combination of these options. Predicated upon successful future financing of the properties, ExchangeRight anticipates that investors will have the option to receive a portion of their initial investment using a tax-deferred cash-out refinance, with the potential to complete a tax-deferred 721 exchange of non-refinanced equity in a later transaction with an acquiring REIT.

Joshua Ungerecht, a managing partner at ExchangeRight, explained that the company continues to see sustained demand for stable all-cash offerings.

“We are committed to meet the ongoing needs in the market for 1031 DST offerings that focus on historically recession-resilient tenants and industries,” said Ungerecht. “Based on where we are in the economic cycle, more representatives and advisors are choosing investments that are foremost designed to protect their clients' wealth and income. This all-cash portfolio focuses on real estate that is producing cash flows from in-place lease revenue from Dollar Tree and Tractor Supply Company, which are investment-grade credit tenants and historically have thrived through economic downturns like the Great Recession and the COVID crisis.”