Net-Leased All-Cash 21 DST

Overview

ExchangeRight Net-Leased All-Cash 21 DST is a debt-free offering of net-leased real estate backed by historically recession-resilient tenants, with a 5.05% 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 21’s exit strategy is intended to capitalize on ExchangeRight’s REIT platform and aggregation strategy by having the REIT platform acquire the DST interests. The strategy prioritizes capital preservation, stable monthly income, and ongoing tax deferral to investors through the Section 721 tax-deferred exchange. In addition to the primary goals noted above, the Sponsor targets to provide individual Owners with the following exit options: 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 capitalize on ExchangeRight’s aggregated portfolio by providing additional diversification by property, location, tenant, industry, lease term, and debt term to investors. The targeted exit options of providing a future Section 1031 Exchange or cash out are also dependent on the ExchangeRight REIT’s capital availability and are not guaranteed.