Top1031

ExchangeRight Net Leased Portfolio 40 DST

sponsored by ExchangeRight

HistoricalLast Form D, filed Jan 4, 2023, reports the offering fully sold (opens in a new tab)

ExchangeRight Net Leased Portfolio 40 DST, sponsored by ExchangeRight, filed its first Form D with the SEC on Oct 1, 2020 for a $45.4 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
$45,440,000
Equity offered, per the Form D
Sold
100%
Form D, Jan 4, 2023; the % is our arithmetic
Investors reported
103
Form D, Jan 4, 2023
Selling commissions
$2,953,600 · 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 →

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Ask a 1031 specialist about this recordFree. About: ExchangeRight Net Leased Portfolio 40 DST. Top1031 is not a broker-dealer.

What did the Trust own?

The portfolio is 21 single-tenant, freestanding buildings in nine states, among them Georgia, Texas and Virginia. 1 Sponsor marketing put the combined rentable area at 352,003 square feet and described the space as leased to nine tenants when the offering launched. 3 The occupants are retail, pharmacy and auto-parts operators. The Trust was organized in Delaware in 2020. 4

How was it financed, and what did it cost to sell?

The Trust carries a loan. ExchangeRight reported that the portfolio launched with ten-year financing at a fixed rate and interest-only payments for the full term, meaning no principal is paid down before the loan matures. 1

Debt

Financing
Leveraged. This offering reports mortgage debt on the property.

Costs and terms from the Form D

Selling commissions
$2,953,600 · 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
24 named in the Form D
Show the firms

Individual representatives named in Item 12 are not listed.

Date of first sale
Oct 20, 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 issuer reported October 20, 2020 as the date of its first sale. 4 The exemption used bars general advertising to the public.

Legal Trust name
ExchangeRight Net Leased Portfolio 40 DST
SEC CIK
1826496
First Form D
Oct 1, 2020
Latest Form D
Jan 4, 2023
Filings on record
3
Offered under
Rule 506(b)
General advertising and solicitation are not permitted under this exemption.
Source filing
Read the filings on SEC EDGAR

SEC Form D filings, newest first

FiledFormOffering amountAmount soldInvestors
Form D/A$45,440,000was $45,520,000
$45,440,000+$27,335,805
103+58
EDGAR
Form D/A$45,520,000was $45,440,000
$18,104,195+$18,104,195
45
EDGAR
Form D$45,440,000
$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 40 DST?
ExchangeRight Net Leased Portfolio 40 DST is a Historical offering. The last Form D, filed Jan 4, 2023, reports the offering fully sold.
What does ExchangeRight Net Leased Portfolio 40 DST own?
It owns 21 single-tenant, net-leased properties spread across nine states, including Georgia, Texas and Virginia, according to ExchangeRight's December 8, 2020 announcement. The marketplace page published by Real Estate Transition Solutions puts the combined rentable area at 352,003 square feet.
Who are the tenants?
Nine tenants occupy the portfolio. ExchangeRight's corporate overview dated March 31, 2021 lists CVS Pharmacy at five properties, Dollar General at five, Walgreens at four, Tractor Supply at two, and AutoZone, Dollar Tree, Kroger, O'Reilly Auto Parts and Sherwin Williams at one each.
What does net leased mean for this portfolio?
Net leased means the tenant, not the landlord, pays the operating costs of its store, typically property taxes, insurance and maintenance. Each building here is leased to a single business under that kind of lease, so rent arrives from one occupant per property.
How is the Trust financed?
It uses debt. ExchangeRight reported that the portfolio launched with ten-year financing carrying a fixed rate and interest-only payments for the whole term, so the principal balance stays level until maturity.
How large was the offering?
ExchangeRight described Portfolio 40 as a $99.72 million offering in its December 8, 2020 announcement, a figure that includes the mortgage debt. The Form D amendment filed with the SEC on January 4, 2023 records the equity portion as $45,440,000, revised from the $45,520,000 reported in October 2020.

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.