Net-Leased Essential Grocery DST
Net lease retail property in Uniondale, NY · sponsored by ExchangeRight
Net-Leased Essential Grocery DST was a DST sponsored by ExchangeRight that owned a net lease retail property in Uniondale, NY (61,916 square feet). Its last Form D, filed Jan 29, 2024, reports the offering fully sold.
How it ended
No outcome recorded · under 7 years
The last Form D, filed Jan 29, 2024, reports the offering fully sold.
Key facts
- Minimum investment
- $100,000From the Form D
- Offering size
- $19,200,000Equity offered, per the Form D
- Sold
- 100%Form D, Jan 29, 2024; the % is our arithmetic
- Investors reported
- Form D, Jan 29, 202472
- Selling commissions
- Form D Item 15; the % is our arithmetic$960,000 · 5.0% of offering
- Financing
- All cash. This offering reports no mortgage debt.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: Net-Leased Essential Grocery DST. Top1031 is not a broker-dealer.Net-Leased Essential Grocery DST · Uniondale, NY · Photo: mma.prnewswire.com
What did the Trust own?
The Trust's asset is a single supermarket building in Uniondale, on Long Island, New York, leased to the grocer ShopRite. 2 Sponsor materials do not give a street address, year built, or purchase price. Long Island Business News reported an August 2022 sale of a Uniondale ShopRite at 1121 Jerusalem Avenue for $24.75 million, but that article names ExchangeRight Real Estate rather than this Trust, so the link is unresolved. 3
- Reported location
- Uniondale, NY
- Property size
- 61,916 square feet
Tenant and lease terms are not in the SEC filings or cited sources.
How was it financed, and what did it cost to sell?
The Trust holds the building free of mortgage debt: no lender, no loan maturity, no refinancing to negotiate. For a 1031 exchanger, that also means there is no replacement debt attached to the interest, which matters for anyone retiring a loan on the property they sold.
Debt
- Financing
- All cash. This offering reports no mortgage debt.
- May convert to a REIT (721)
- Yes
Costs and terms from the Form D
- Selling commissions
- $960,000 · 5.0% 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
- 10 named in the Form D
Show the firms
- Aurora Securities · CRD 46147
- Concorde Investment Services, LLC · CRD 151604
- Emerson Equity LLC · CRD 130032
- FNEX Capital, LLC · CRD 166316
- Gramercy Securities, Inc. · CRD 8177
- Great Point Capital LLC · CRD 114203
- JRL Capital Corporation · CRD 10225
- Lighthouse Capital Group, LLC · CRD 169135
- Peak Brokerage Services, LLC · CRD 157045
- Vanderbilt Securities, LLC · CRD 5953
Individual representatives named in Item 12 are not listed.
- Date of first sale
- Aug 1, 2022
- 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 is the sponsor named on the Trust's own offering materials and runs one of the larger net-lease DST platforms by program count. 2 It announced on October 26, 2023 that investors had fully subscribed this offering. 2 Its programs contemplate a 721 or "UPREIT" exit — the option to swap DST interests for operating-partnership units in a REIT instead of running another 1031 exchange.
- Sponsor
- Offerings on record
What does the SEC record show?
- Legal Trust name
- ExchangeRight Essential Grocery DST
- SEC CIK
- 1937772
- First Form D
- Jul 25, 2022
- Latest Form D
- Jan 29, 2024
- Filings on record
- 3
- 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 | $19,200,000was $29,200,000 | $19,200,000+$17,710,000 | 72+68 | EDGAR | |
| Form D/A | $29,200,000was $19,200,000 | $1,490,000+$1,490,000 | 4 | EDGAR | |
| Form D | $19,200,000 | $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 Net-Leased Essential Grocery DST?
- Net-Leased Essential Grocery DST is a Historical offering. The last Form D, filed Jan 29, 2024, reports the offering fully sold.
- Does Net-Leased Essential Grocery DST have a 721 UPREIT exit?
- The record lists a possible 721 exit for Net-Leased Essential Grocery DST. The offering documents set whether and when it could happen. In a 721 exchange, or UPREIT, the DST’s property is contributed to a REIT’s operating partnership and investors receive operating-partnership units instead of cash.
- How a DST-to-721 UPREIT exit works
- Why do the SEC filings and the press release show different offering sizes?
- They do not line up. The initial Form D filed July 25, 2022 recorded one total offering amount, the September 12, 2022 amendment recorded a larger total of $29.2 million, and the January 29, 2024 amendment reported a smaller total again. Top1031 reports each figure by its filing date rather than reconciling them.
- What does an all-cash DST mean for my exchange?
- It means the Trust owns the property without a mortgage. There is no lender, no loan maturity, and no debt at the property level. It also means the interest carries no replacement debt, so an exchanger who is paying off a loan on the relinquished property generally has to replace that debt elsewhere or contribute additional cash. Your tax adviser can work through how that applies to you.
- Who is the tenant, and how long is the lease?
- ShopRite occupies the Uniondale building under a net lease, per ExchangeRight's October 26, 2023 announcement. That release described a 10% rent increase taking effect May 1, 2026 and escalations inside six five-year renewal options, but the sponsor materials reviewed do not state the base lease expiration date. The lease term itself would appear in the offering documents.
- Where exactly is the property?
- ExchangeRight identified it as a 61,916-square-foot net-leased ShopRite in Uniondale, New York. The sponsor's public materials do not state a street address. Long Island Business News reported an August 2022 sale of a Uniondale ShopRite at 1121 Jerusalem Avenue for $24.75 million to ExchangeRight Real Estate, but that report names the sponsor entity, not this Trust, so the tie to this offering is unconfirmed.
In the news
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.