Your 1031 DST Authority
ARCTRUST Exchange DST
Offering Overview
ARCTRUST Exchange DST is a $21.1 million Delaware Statutory Trust portfolio of six single-tenant properties in Alabama, North Carolina, and West Virginia. The portfolio totals 53,530 square feet and is fully leased to CVS Pharmacy and Pinnacle Bank, with an 11.8-year weighted average lease term and contractual rent increases described in the offering materials. The offering provides $12.245 million of Class A equity interests and is leveraged with an $8.855 million Provident Bank loan at 5.75% fixed interest. The original five-year interest-only loan is paired with two two-year extension options and a 25-year amortization schedule after the interest-only period. The First Amendment extends the projected trust plan through February 1, 2035, creating a projected five-to-nine-year hold. The PPM includes an FMV Option under which eligible investors may elect Exchange Entity units intended to qualify under Section 721, but the option is discretionary and not guaranteed.
Investment Highlights
- Six single-tenant absolute-net-lease properties across AL, NC, and WV; 53,530 square feet; 11.8-year WALT.
- 100% of rental income is from CVS Pharmacy and Pinnacle Bank, which the sponsor materials identify as rated or investment-grade tenants.
- 42% loan-to-purchase-price ratio with 5.75% fixed Provident Bank debt; five years of interest-only payments before scheduled amortization.
- Current supplement projects cash distributions of 5.01% to 5.28% in years 1-4, 5.23% in year 5, and 4.08% to 4.42% in years 6-9 as amortization begins.
- FMV Option allows eligible holders to elect Exchange Entity units intended to qualify under Section 721 if the option is exercised and suitability requirements are met.
Forecasted Cash Flow
Projected annual cash-on-cash distributions with the corresponding tax-equivalent yield over the hold, based on the sponsor’s underwriting assumptions.
Illustrative projections only — targeted distributions are not guaranteed and actual results will vary. Tax-equivalent yield assumes depreciation shelter of distributed income.
Analyst Notes
100% tenant concentration in only CVS Pharmacy and Pinnacle Bank; regional and retail/pharmacy concentration; CVS operating and closure risk; discretionary FMV/Exchange Entity option; refinancing and extension risk; returns are projections and distributions are not guaranteed.
Pros
$50,000 minimum investment; 1031/DST structure; diversified across six properties and three states.
Cons
Absolute-net leases and credit-oriented tenants may reduce property-level expense exposure; fixed-rate debt and moderate leverage support visibility into near-term cash flow; the sponsor reports four prior full-cycle DST investments.
Financing
Financing terms for this offering are summarized below.
Benchmark Comparison
| Metric | This Offering | Benchmark | Difference |
|---|---|---|---|
| Average Yield | 4.75% | 5.13% | −7.41% |
| Max Yield | 5.28% | 5.36% | −1.49% |
| 10-Yr Income Growth | 5.39% | 8.59% | −37.25% |
Benchmark reflects the average of comparable Net Lease offerings. Differences are relative to the benchmark.
Offering Documents
Offering Documents Available By Request
About the Sponsor
ARCTRUST is a roughly 40-year, vertically integrated net-lease specialist structured as a private REIT, giving 1031 investors access to a diversified, professionally managed retail portfolio rather than a single-asset DST. Based in Clifton, New Jersey, the firm develops build-to-suit properties for national credit tenants such as Wawa, ShopRite and Chick-fil-A and concentrates on necessity retail across the New York-to-Washington corridor, Florida and airport-metro markets. It has completed more than 500 projects valued in excess of $5 billion, a development track record that anchors its DST and REIT offerings.
This page describes a specific Delaware Statutory Trust offering (ARCTRUST Exchange DST) and is provided for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offering is made solely to verified accredited investors and only by means of a confidential private placement memorandum (PPM).
All figures shown — including minimum investment, cash-flow projections, tax-equivalent yield, loan-to-value, and hold period — reflect the sponsor's current estimates and assumptions and are not guarantees of future performance. Tax-equivalent yield depends on each investor's tax circumstances; projected distributions may not be achieved and actual results will vary. Sponsor track record, benchmark data, and full-cycle averages describe prior programs and are not indicative of the results of this offering.
An investment in a DST is speculative, illiquid, and involves a high degree of risk, including the possible loss of the entire amount invested. There is no public market for these interests, distributions are not guaranteed, and investors have no control over property operations. 1031 exchange and tax treatment depend on each investor's individual circumstances and on tax laws that are subject to change; consult your own tax and legal advisors.
Tax-equivalent yield represents the pre-tax yield a fully taxable investment would need to generate in order to match the after-tax cash flow of this offering. It assumes that a portion of distributions is sheltered by depreciation and other deductions, and it depends entirely on each investor's individual tax bracket, state of residence, and holding structure. It is illustrative only and is not a projection of return. Cap rate equivalent is the implied capitalization rate (net operating income divided by purchase price) shown solely for comparison to direct real estate; it is not a distribution rate, a yield, or a measure of investor return.
This offering and all terms shown are subject to change, withdrawal, or cancellation at any time without notice, and availability is not guaranteed. Nothing on this page creates a commitment or reservation. An investment is confirmed only upon the sponsor's acceptance of fully executed subscription documents; no other communication, indication of interest, or reservation constitutes a binding investment.