ExchangeRight: Net-Leased All-Cash 18 DST
Investment Overview
ExchangeRight Net-Leased All-Cash 18 DST is a debt-free offering of net-leased real estate backed by historically recession-resilient tenants, with a 5.15% current cash flow from in-place lease revenue. The portfolio is focused on properties that are leased to national tenants successfully operating in necessity-based industries.
Net-Leased All-Cash 18's exit strategy is intended to capitalize on ExchangeRight's REIT platform and aggregation strategy by having the REIT platform acquire the DST interests and providing investors with the option to 1) complete another Section 1031 Exchange, 2) participate in a tax-deferred cash out financing targeting 20% of their total investment value to be distributed as financing proceeds and an exchange of the remaining equity interests under Section 721 of the Code, 3) participate in a tax-deferred exchange of their DST interests for ownership in an operating partnership of a REIT under Section 721 of the Code, 4) take all of their cash out on a non-tax-deferred basis, or 5) any combination of the above options. This strategy is intended to maximize value for DST owners by taking advantage of ExchangeRight's aggregated portfolio and providing investors electing to perform a 721 exchange with additional diversification by property, location, tenant, industry, lease term, and debt term.
Offering Strengths
Strong sponsor with solid track record. Diversification across multiple states and good average lease duration of 12 years. Company formed in 2012, has $5.6+ Billion of assets under management, invested in 1,200+ properties across 47 states. ExchangeRight offers a full income guarantee. All full-cycle offerings have met or exceeded projected returns. All active offerings are meeting or exceeding investor cash flow distributions.
Offering Weaknesses
NNN properties may offer lower depreciation benefits and value appreciation potential than other real estate asset classes.
Key Facts
Sponsor: ExchangeRight
Structure: Delaware Statutory Trust (DST)
Location(s): AL, FL, GA, MI, TX
Property Type(s): NNN Medical and NNN
Assumable Loan: No Loan; All-Cash
Estimated Hold Period: 10 Years
Key Features
1031 Exchange: Yes
721 Exchange/UPREIT: Yes; Investor Option
Cash-Out Refinance: No
Income Guarantee: Yes; Full Income
Distribution Forecast
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Investor Cash Flow | 5.15% | 5.19% | 5.22% | 5.25% | 5.30% | 5.42% | 5.46% | 5.49% | 5.52% | 5.58% |
Sponsor Overview
Founded in 2012, ExchangeRight is a 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.