1031 DST Sponsor Spotlight: ExchangeRight
Founded in 2012, ExchangeRight is a Pasadena, CA-based real estate investment firm specializing in net-leased assets within the retail and healthcare sectors. The firm manages over $6.1 billion in assets across more than 1,200 properties in 47 states, with a portfolio focused on investment-grade tenants and necessity-based businesses like Walgreens, Kroger, and Dollar General. ExchangeRight maintains a 99.75% leased portfolio with an average lease term of 7.9 years, ensuring steady cash flow and reliable performance. The firm has demonstrated a strong track record with 100% of rents collected.
Focus Areas
Targeted Investments: Specializes in commercial real estate, focusing on essential service sectors like single-tenant retail and healthcare properties.
Strategic Locations: Invests in multi-tenant retail spaces that are shadow-anchored by strong grocery and healthcare tenants, optimizing for high-traffic locations.
Market Adaptability: Pursues diversification by incorporating other asset classes deemed appropriate based on market cycles, showing a responsive strategy to changing economic conditions.
Aggregation Strategy: Implements a unique exit strategy through net lease program exits primarily to REIT, streamlining asset management and potentially enhancing investment returns.
Performance
AVERAGE NET ANNUAL RETURN (ARR)
8.60%
AVERAGE NET EQUITY MULTIPLE
1.45x
AVERAGE HOLDING PERIOD
5.18 Years
POSITIVE PERFORMANCE
34:0 (100%)
Track Record
| Offering | Opened | Closed | Annual Return* |
|---|---|---|---|
| Net-Leased Preferred Equity Fund 1 | 4/30/2012 | 12/31/2016 | 12.93% |
| Net-Leased Preferred Equity Fund 2 | 12/5/2014 | 7/25/2018 | 10.11% |
| Net-Leased Preferred Equity Fund 3 | 7/27/2016 | 6/30/2023 | 8.37% |
| Acquisition Notes | 6/1/2012 | 10/16/2017 | 12.00% |
| Acquisition Notes II | 2/9/2015 | 8/14/2020 | 10.00% |
| Acquisition Notes III | 7/1/2017 | 8/14/2020 | 10.00% |
| Multifamily 1 - Van Mark Creek Apartments | 4/27/2015 | 4/5/2019 | 7.27% |
| Multifamily 2 - Mira Bella and San Martin Apartments | 7/31/2015 | 11/13/2019 | 6.82% |
| Multifamily 3 - Lakeside at Arbor Place Apartments | 7/1/2016 | 9/12/2019 | 11.08% |
| Multifamily 4 - North Austin Apartment | 10/27/2016 | 1/27/2021 | 6.80% |
| Multifamily 5 - Crystal Lake Florida Apartments | 1/25/2017 | 8/23/2019 | 8.51% |
| Multifamily 6 - El Paso Apartments | 1/30/2018 | 11/17/2021 | 14.52% |
| Net-Leased Portfolio 1 | 4/5/2012 | 8/29/2019 | 9.99% |
| Net-Leased Portfolio 2 | 9/1/2012 | 9/26/2019 | 10.08% |
| Net-Leased Portfolio 3 | 2/8/2013 | 9/29/2020 | 9.87% |
| Net-Leased Portfolio 4 | 9/23/2013 | 3/30/2021 | 8.45% |
| Net-Leased Portfolio 5 | 2/4/2014 | 12/9/2021 | 7.75% |
| Net-Leased Portfolio 6 | 5/9/2014 | 4/1/2022 | 7.90% |
| Net-Leased Portfolio 7 | 9/24/2014 | 2/9/2022 | 8.74% |
| Net-Leased Portfolio 8 | 2/2/2015 | 10/15/2019 | 8.84% |
| Net-Leased Portfolio 9 | 4/21/2015 | 9/7/2022 | 7.26% |
| Net-Leased Portfolio 10 | 9/3/2015 | 10/27/2022 | 7.34% |
| Net-Leased Portfolio 11 | 12/4/2015 | 8/31/2022 | 6.82% |
| Net-Leased Portfolio 12 | 4/14/2016 | 12/18/2019 | 8.47% |
| Net-Leased Portfolio 13 | 9/1/2016 | 10/29/2020 | 8.64% |
| Net-Leased Portfolio 14 | 12/2/2016 | 3/25/2021 | 7.54% |
| Net-Leased Portfolio 15 | 3/2/2017 | 11/1/2021 | 7.27% |
| Net-Leased Portfolio 16 | 5/31/2017 | 3/2/2022 | 7.79% |
| Net-Leased Portfolio 17 | 8/10/2017 | 6/24/2022 | 7.43% |
| Net-Leased Portfolio 18 | 11/10/2017 | 7/26/2022 | 6.83% |
| Net-Leased Portfolio 19 | 12/21/2017 | 8/24/2022 | 7.09% |
| Net-Leased Portfolio 21 | 4/9/2018 | 9/13/2022 | 6.70% |
| Net-Leased Portfolio 22 | 6/7/2018 | 8/31/2023 | 6.42% |
| Net-Leased Portfolio 28 | 7/10/2019 | 11/19/2024 | 6.97% |
| TOTALS | 8.60% | ||
