ExchangeRight, one of the nation’s leading providers of diversified real estate DST and REIT investments, has announced investors have fully subscribed ExchangeRight’s Essential Grocery DST, a $29.2 million all-cash offering featuring a 61,916-square-foot net-leased property tenanted by ShopRite, an essential business successfully operating in the historically recession-resilient grocery industry. The offering has been structured to provide investors with monthly distributions starting at an annualized rate of 4.09 percent from in-place revenue.
The ShopRite store featured in this offering is located in Uniondale, NY and is ranked in the top 20 percent in estimated total visits for reporting grocery stores in NY state.
The offering’s exit strategy intends 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, ExchangeRight anticipates investors will be able to receive a portion of their initial investment using a tax-deferred cash-out refinance, with the potential to complete a later tax-deferred 721 exchange of non-refinanced equity with an acquiring REIT.
“We are pleased to provide access to our historically recession-resilient investment strategy for investors who need an all-cash offering,” said Joshua Ungerecht, a managing partner at ExchangeRight. “In addition to creating investments that provide capital preservation and stable income during difficult times like these, we are excited to provide a tax-deferred cash-out refinance option to investors, which may allow them to pull future cash out of the 1031 exchange cycle to be reinvested into more flexible wealth management alternatives.”