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Diversified
Net-Leased All-Cash 7 DST
Geographically Diversified
Open for Pledging
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Net-Leased All-Cash 7 DST
Geographically Diversified
All Investments > Net-Leased All-Cash 7 DST
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Overview
Net-Leased All-Cash 7 DST
ExchangeRight Net-Leased All-Cash 7 DST is a debt-free offering of net-leased real estate backed by historically recession-resilient tenants, with a 5.20% current cash flow from in-place lease revenue. The portfolio is focused on properties that are leased to national tenants successfully operating in necessity-based industries.
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Details
For more information, view the Sponsor's Investment Memorandum.
Eligibility 1031 Exchange Only
Minimum Investment 100000
Investment Type Equity
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
Deal Highlights
Investment Highlights
Institutional Sponsor: ExchangeRight and its affiliates’ vertically integrated platform features more than $5.9 billion in assets under management that are diversified across over 1,200 net lease properties and 24 million square feet throughout 47 states as of May 31, 2024.
Strong Tenant Base: The portfolio consists of 3 tenants in 2 states. Tenants include BioLife Plasma Services and Dollar Tree, both in Texas, and Tractor Supply Co. in Minnesota.
Cash Flow: Year one cash flow from in-place lease revenue is 5.20%.
Long-Term Leases: The weighted average lease term remaining on initial leases is 15.3 years.
Recently Constructed Assets: All 3 properties were constructed or renovated in 2023/2024.
Debt-Free Offering: The DST is an all-cash, debt-free offering eliminating the risk of lender foreclosure and providing exit strategy flexibility.
721 Optional: The offering is eligible for a 721 exchange upon exit.
Institutional Sponsor: ExchangeRight and its affiliates’ vertically integrated platform features more than $5.9 billion in assets under management that are diversified across over 1,200 net lease properties and 24 million square feet throughout 47 states as of May 31, 2024.
Strong Tenant Base: The portfolio consists of 3 tenants in 2 states. Tenants include BioLife Plasma Services and Dollar Tree, both in Texas, and Tractor Supply Co. in Minnesota.
Cash Flow: Year one cash flow from in-place lease revenue is 5.20%.
Long-Term Leases: The weighted average lease term remaining on initial leases is 15.3 years.
Recently Constructed Assets: All 3 properties were constructed or renovated in 2023/2024.
Debt-Free Offering: The DST is an all-cash, debt-free offering eliminating the risk of lender foreclosure and providing exit strategy flexibility.
721 Optional: The offering is eligible for a 721 exchange upon exit.
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Management
For more information, view the Sponsor's Investment Memorandum.
ExchangeRight

ExchangeRight and its affiliates’ vertically integrated platform features more than $5.9 billion in assets under management that are diversified across over 1,200 properties and 24 million square feet throughout 47 states as of May 31, 2024. ExchangeRight pursues its passion to empower people to be secure, free, and generous by providing REIT, fund, and 1031 DST portfolios that target secure capital, stable income, and strategic exits, all of which have historically met or exceeded investor projections since ExchangeRight’s inception. The company structures and manages net-leased portfolios of assets backed primarily by investment-grade corporations that have successfully operated in the necessity-based retail and healthcare industries, as well as diversified value-add portfolios of inline and outparcel retail properties shadow-anchored by strong-performing grocery tenants on behalf of more than 8,200 investors nationwide. 

Sponsor Track Record

Please see the following link for ExchangeRight's Track Record.

Management Team
Management
Warren Thomas, CPA
Managing Partner

Warren has over 40 years of experience as a CPA and has been an active commercial real estate investor for the past 30 years. Prior to focusing on the securitized 1031 exchange market in 2003, he developed an extensive tax practice including estate planning, financial planning, and real estate advisory services. He graduated in 1978 from Biola University with a B.S. in Business, specializing in Accounting. He also earned a master’s degree in Taxation from Golden Gate University in 1993. He maintains Series 6, 7, 22, 24, 39, 63, 66, and 79 Securities Licenses.

Management
David Fisher
Managing Partner

David is primarily responsible for the acquisition, asset management, financing, and advocacy efforts related to ExchangeRight and its affiliate businesses. He is an active member of the Federation of Exchange Accommodators, Institute for Portfolio Alternatives, and the Tax Committee of the Real Estate Round Table, where he focuses on lobbying efforts in Congress to protect the interests of investors and other stakeholders in the health and stability of the American commercial real estate market.

David began his real estate and finance career nearly three decades ago as a manager in the tax department of KPMG. He later joined Wells Fargo, where he focused on tax, treasury, and acquisitions for more than seven years. From 2005 until 2012, he served as HSBC’s North American Head of Asset and Structured Finance for the company’s investment banking division, where he and his banking teams executed international financings in excess of $8 billion. David graduated magna cum laude from the University of Northern Iowa in 1993 with a degree in Accounting, earning national honors with the Elijah Watt Sells Award on the May 1993 CPA exam.

Management
Joshua Ungerecht
Managing Partner

Joshua currently serves as Managing Partner of ExchangeRight and Telos Capital and continues to serve as CEO and Chief Investment Officer of a wealth management firm and Broker-Dealer specializing in securitized real estate investments. Together with his Partners, Joshua has overseen and underwritten the acquisition of over $6 billion in real estate. Joshua graduated from The Master’s College summa cum laude with a B.A. in Theology, Apologetics, and Missions and is currently on leave from Talbot Graduate School, where he was pursuing an M.A. in Philosophy of Religion and Ethics. He also maintains Series 7, 22, 24, 63, 66, and 79 securities licenses and an active California real estate broker license. 

Property
For more information, view the Sponsor's Investment Memorandum.

Tenant Financials, Lease, and Location Information

Tenant Credit Rating Location Year Built Square Feet Vehicle Count Year 1 NOI Lease Expiration Tenant Financials  
BioLife Plasma Services The lease is guaranteed by Takeda Pharmaceuticals U.S.A., Inc., which is a wholly-owned subsidiary of Takeda Pharmaceutical Co. Ltd. This entity is S&P Rated: Investment Grade BBB+ (Long-Term) A-2 (Short-Term) Mesquite, TX 2024 14,737 SF 9,700 $705,929 2/28/2039

2024 Total Assets: $99.82 Billion
2024 Fiscal Year Revenue: $29.55 Billion
2024 Fiscal Year Gross Profit: $19.66 Billion
2024 Fiscal Year Net Income: $998.37 Million
2024 Number of Stores: 260

Dollar Tree Dollar Tree Stores, Inc. is a wholly-owned subsidiary of Dollar Tree, Inc., which is S&P Rated: Investment Grade BBB (Long-Term) A-2 (Short-Term) Richland Hills, TX 1997 / 2024 (renovated) 11,218 SF 37,251 $250,658 5/31/2034 2024 Total Assets: $22.02 Billion
2024 Fiscal Year Revenue: $30.60 Billion
2024 Fiscal Year Gross Profit: $9.33 Billion
2024 Fiscal Year Revenue Growth: 8.02%
2024 Number of Stores: 8,415
Tractor Supply Co. S&P Rated: Investment Grade BBB (Long-Term) Dundas, MN 2023 21,758 SF 9,646 $399,000 5/31/2044

2023 Annual Revenue: $14.56 Billion
2023 Annual Gross Profit: $5.23 Billion
2023 Annual Net Income: $1.11 Billion
2023 Annual Revenue Growth: 2.47%
2023 Number of Stores: 2,216

“Investment grade” refers to tenants whose long-term corporate debt rating is considered investment grade by Standard & Poor’s, Moody’s, and/or Fitch. An investment grade rating is a rating that indicates that a corporate bond has a relatively lower risk of default than a corporate bond with a speculative grade. The S&P Credit Rating Scale rates AAA to BBB- as investment grade and BB+ to D as speculative grade. Tenant financials reflect the most recent financial information for the Parent entity of each of the tenants.

Financials
For more information, view the Sponsor's Investment Memorandum.
Distributions

Please refer to the Net-Leased All-Cash 7 DST - Private Placement Memorandum in the Documents section for details regarding distributions and fees.

Distributions

Please refer to the Net-Leased All-Cash 7 DST - Private Placement Memorandum in the Documents section for details regarding distributions and fees.

Disclosures
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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