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

No outcome recorded · under 7 years

The last Form D, filed Jan 4, 2023, reports the offering fully sold.

ExchangeRight has 11 active offerings on record →

Key facts

Minimum investment
$100,000
From the Form D
Offering size
$47,775,000
Equity offered, per the Form D
Sold
100%
Form D, Jan 4, 2023; the % is our arithmetic
Investors reported
89
Form D, Jan 4, 2023
Selling commissions
$3,105,375 · 6.5% of offering
Form D Item 15; the % is our arithmetic
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 offering
Form D Item 16
Broker-dealers named in the Form D
19 named in the Form D
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.

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.

SEC Form D filings, newest first

SEC Form D filings for ExchangeRight Net Leased Portfolio 39 DST, newest first
FiledFormOffering amountAmount soldInvestorsFiling 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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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.