ExchangeRight Net Leased Portfolio 39 DST
sponsored by ExchangeRight
ExchangeRight Net Leased Portfolio 39 DST, sponsored by ExchangeRight, filed its first Form D with the SEC on Sep 1, 2020 for a $47.7 million offering. Its last Form D, filed Jan 4, 2023, reports the offering fully sold.
How it ended
The last Form D, filed Jan 4, 2023, reports the offering fully sold.
Key facts
- Minimum investment
- $100,000From the Form D
- Offering size
- $47,775,000Equity offered, per the Form D
- Sold
- 100%Form D, Jan 4, 2023; the % is our arithmetic
- Investors reported
- Form D, Jan 4, 202389
- Selling commissions
- Form D Item 15; the % is our arithmetic$3,105,375 · 6.5% of offering
- Financing
- Leveraged. This offering reports mortgage debt on the property.How it is financed ↓
- Offered under
- Rule 506(b)General advertising and solicitation are not permitted under this exemption.
Figures come from SEC Form D filings unless a source is cited. Sponsor-stated figures are as reported by the sponsor; Top1031 does not independently audit them. On a 45-day clock? Find day 45 and day 180 →
Using this record to judge the sponsor? A licensed 1031 specialist from our affiliated partner can talk it through with you.
Ask a 1031 specialist about this recordFree. About: ExchangeRight Net Leased Portfolio 39 DST. Top1031 is not a broker-dealer.What did the Trust own?
ExchangeRight described Portfolio 39 as 18 single tenant, net leased properties spread across 10 states, occupied by what it called essential businesses: grocery, pharmacy and discount retail among them. 1 The properties were assembled under a Delaware business trust organized in 2020. 2
How was it financed, and what did it cost to sell?
The sponsor said the offering launched with 10 year, fixed rate financing, so the rate holds steady for the loan's term. 1 The balance comes due at maturity.
Debt
- Financing
- Leveraged. This offering reports mortgage debt on the property.
Costs and terms from the Form D
- Selling commissions
- $3,105,375 · 6.5% of offering
- Finders’ fees
- $0
- Paid to officers, directors and promoters
- $0 · 0.0% of offeringForm D Item 16
- Broker-dealers named in the Form D
- 19 named in the Form D
Show the firms
- Arkadios Capital · CRD 282710
- Cabin Securities, Inc. · CRD 137608
- Concorde Investment Services, LLC · CRD 151604
- Galt Financial Group, Inc. · CRD 146976
- Great Point Capital LLC · CRD 114203
- Growth Capital Services, Inc. · CRD 124658
- Investment Security Corporation · CRD 47536
- Kalos Capital, Inc. · CRD 44337
- Lighthouse Capital Group, LLC · CRD 169135
- Lightpath Capital, Inc. · CRD 34617
- McDermott Investment Services, LLC · CRD 154926
- National Securities Corporation · CRD 7569
- Newbridge Securities Corporation · CRD 104065
- Realized Financial, Inc. · CRD 22333
- SCF Securities, Inc. · CRD 47275
- The Strategic Financial Alliance, Inc. · CRD 126514
- Titan Securities · CRD 131392
- Wealthforge Securities, LLC · CRD 152550
- Western International Securities, Inc. · CRD 39262
Individual representatives named in Item 12 are not listed.
- Date of first sale
- Sep 3, 2020
- Minimum investment
- $100,000
Form D Item 15 and Item 16 amounts may be the issuer’s estimates; each percentage is Top1031’s arithmetic on two Form D figures. Item 16 can overlap Item 15, so Top1031 does not add them together.
Who's behind the Trust?
ExchangeRight sponsors net leased real estate offerings aimed at 1031 exchange investors, buying single tenant buildings leased to national retail and service companies. 1 Portfolio 39 belongs to its numbered Net Leased Portfolio series, which groups many such properties into one trust so that a single investor's money is spread across tenants and states. 1
- Sponsor
- Offerings on record
What does the SEC record show?
The Trust filed a Form D, the short notice an issuer sends the SEC after its first sale of securities, when the offering began, and later filed one amendment to that notice. Interests were offered privately to accredited investors, those meeting SEC income or net worth tests, without public advertising.
- Legal Trust name
- ExchangeRight Net Leased Portfolio 39 DST
- SEC CIK
- 1821677
- First Form D
- Sep 1, 2020
- Latest Form D
- Jan 4, 2023
- Filings on record
- 2
- Offered under
- Rule 506(b)General advertising and solicitation are not permitted under this exemption.
- Source filing
SEC Form D filings, newest first
| Filed | Form | Offering amount | Amount sold | Investors | Filing on SEC EDGAR |
|---|---|---|---|---|---|
| Form D/A | $47,775,000 | $47,775,000+$47,775,000 | 89 | EDGAR | |
| Form D | $47,775,000 | $0 | EDGAR |
Amounts, investor counts and minimums are as filed with the SEC on Form D. The change lines are Top1031’s arithmetic between consecutive filings; a new Form D notice starts a new count.
A Form D is the notice a sponsor files when it starts raising money. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
Common questions
- What happened to ExchangeRight Net Leased Portfolio 39 DST?
- ExchangeRight Net Leased Portfolio 39 DST is a Historical offering. The last Form D, filed Jan 4, 2023, reports the offering fully sold.
- What does ExchangeRight Net Leased Portfolio 39 DST own?
- It owns a group of 18 single tenant, net leased properties located across 10 states, as described by ExchangeRight in its October 29, 2020 announcement about the portfolio. The sponsor characterized the occupants as essential businesses, including grocery, pharmacy and discount retail. Individual building addresses are set out in the offering documents.
- Who are the tenants?
- ExchangeRight named Kroger, Walgreens, Dollar General, BioLife, Giant Eagle, Dollar Tree and Tractor Supply among the portfolio's tenants and described them as national investment grade companies, meaning they carry credit ratings in the investment grade range. Because the properties are net leased, the tenants carry defined property level costs rather than the landlord.
- How is the Trust financed?
- The Trust uses mortgage debt. ExchangeRight said the offering launched with ten year financing at a fixed interest rate, which means the rate does not move during the loan term and the balance comes due at maturity, when it is repaid or refinanced.
- Why does the sponsor's $97.43 million figure differ from the Form D amount?
- They measure different things. The gap reflects borrowed money used alongside investor equity.
- What does the DST structure mean for a 1031 exchange investor?
- A Delaware statutory trust holds the real estate and sells beneficial interests in the trust. The IRS treats those interests as direct ownership of real property for 1031 exchange purposes, so an investor selling a rental property can exchange into them. Investors are passive and do not make property level decisions.
- Who is ExchangeRight?
- ExchangeRight is the sponsor, the firm that assembles the properties, arranges the financing and manages the trust. It specializes in net leased portfolios for 1031 exchange investors and has issued a numbered Net Leased Portfolio series, of which Portfolio 39 is one.
Sources
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These links support the record as a whole; individual details may come from different sources.
DST interests are illiquid private securities. You may lose some or all of your investment. Distributions, tax treatment, and exit timing are not guaranteed. Review the current offering documents before investing.