Investors Seeking Value Creation Fully Subscribe ExchangeRight's Third Value-Add Portfolio

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Jun 04, 2024, 09:00 ET

PASADENA, Calif., June 4, 2024 /PRNewswire/ -- ExchangeRight, one of the nation's leading providers of diversified real estate DST and REIT investments, has announced the company has fully subscribed its $18.73-million Value-Add Portfolio 3 DST. The offering has been structured to provide investors with monthly distributions currently at an annualized rate of 5.25% from in-place revenue. Value-Add Portfolio 3 DST is a closed offering and is not accepting new investors.

PASADENA, Calif. — Unique tenants occupying in-line shopping centers in ExchangeRight's fully-subscribed Value-Add Portfolio 3 DST (Tuesday, June 4, 2024).

VAP 3 has significantly outperformed pro forma underwriting from inception to date. ExchangeRight's strategy focuses on increasing occupancy across the portfolio's shopping centers and securing favorable renewals with existing tenants. Positive variances in both total income and the company's Asset Management team's ability to mitigate operating expenses led to actual Net Operating Income surpassing projections by 12.2% through the first 10 months of VAP 3's fiscal year 1.

VAP 3 is a diversified portfolio of in-line and outparcel retail tenants shadow-anchored by long-term net-leased and strong-performing grocery and national retail companies. The portfolio features 8 in-line shopping centers diversified across 7 states with more than 43 unique tenants, exhibiting in-place cash flow with the potential to preserve capital and provide long-term upside via strategic leasing initiatives and tenant improvements. The portfolio's centers collectively span 95,914 square feet and are shadow-anchored by historically recession-resilient companies, including UnityPoint Health, ShopRite, Giant Eagle, and Food Lion. VAP 3 intends to provide investors with enhanced value and multiple exit options through ExchangeRight's aggregation strategy.

About ExchangeRight

ExchangeRight and its affiliates' vertically integrated platform features more than $5.9 billion in assets under management that are diversified across over 1,200 properties, and 24 million square feet throughout 47 states, as of May 31, 2024. ExchangeRight pursues its passion to empower people to be secure, free, and generous by providing REIT, fund, and 1031 DST portfolios that target secure capital, stable income, and strategic exits, all of which have historically met or exceeded investor projections since ExchangeRight's inception. The company structures and manages net-leased portfolios of assets backed primarily by investment-grade corporations that have successfully operated in the necessity-based retail and healthcare industries, as well as diversified value-add portfolios of inline and outparcel retail properties shadow-anchored by strong-performing grocery tenants on behalf of more than 8,200 investors nationwide. Past performance does not guarantee future results. Please visit www.exchangeright.com for more information.

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SOURCE ExchangeRight