The properties held by ExchangeRight Net Leased Portfolio 7 DST were sold on February 9, 2022. ExchangeRight announced the transaction three weeks later, on March 1, 2022, describing it as the twenty-second full-cycle event on its Delaware Statutory Trust (DST) platform, in its full-cycle announcement.
The Trust entered the public record on October 15, 2014, with a Form D filed under 506(b). That filing carries the offering amount and the minimum investment and nothing about what the Trust bought. No offering memorandum or supplement for the Trust sits in the public record, so the distribution terms the Trust launched with are not documented anywhere a reader can check.
The composition of the portfolio is also absent. How many properties the Trust held, where they sat, and which tenants stood behind the net leases are not established by the documents on the record for this Trust.
Item | Detail |
|---|---|
Trust | ExchangeRight Net Leased Portfolio 7 DST |
Sponsor | ExchangeRight |
First Form D | October 15, 2014 |
Exemption | 506(b) |
Offering amount | $14,330,000 |
Minimum investment | $100,000 |
Asset class | Commercial |
Disposition | Property sold, February 9, 2022 |
Hold, first Form D to sale | 7.3 years |
Sale price | $31,230,000, as reported by the sponsor in its March 1, 2022 announcement |
Total return, cash or 1031 basis | Approximately 157.20% of initial capital investment including cash flow, as reported by the sponsor in its March 1, 2022 announcement |
Total return, 721 exchange basis | 170.82% to 171.62% of initial capital investment including cash flow, as reported by the sponsor in the same announcement |
Annualized return | 8.74%, as reported by the sponsor in its March 1, 2022 announcement and its full-cycle returns schedule |
The sponsor reports two total-return figures on two different bases, one tied to cash or a 1031 exchange and one tied to a 721 exchange. What the sponsor used to arrive at the 721 range, and how that basis differs in substance from the other, is not stated in the record Top1031 holds. The two figures are not alternative measures of the same quantity, and no document in the record reconciles them to one another.
Two counts of the same event do not agree. The tracked count is built from dispositions Top1031 has on the record, and the announcement does not say what the sponsor's count includes. Neither figure explains the other.
Two hold lengths sit in the record. The first Form D date of October 15, 2014 and the recorded exit date of February 9, 2022 produce the figure used here; Top1031's inputs also carry a hold of 7.4 years. The sponsor's announcement states no hold length at all.