ARCTRUST Private Capital's Net Lease Portfolio for DST

ARCTRUST Private Capital has secured a seven-property net lease portfolio, a strategic move designed to fuel its latest Delaware Statutory Trust (DST) offering, ARCTRUST Exchange II DST. This acquisition underscores a persistent investor demand for stable, income-generating retail assets, even amidst prevailing economic headwinds and elevated interest rates. The portfolio, comprising essential service locations, is being packaged to attract high-net-worth individuals seeking tax-advantaged investment opportunities through Section 1031 exchanges.

The curated collection features three CVS Pharmacy sites, two Pinnacle Bank branches, and two NAPA Auto Parts stores. These properties are geographically dispersed across six states—North Carolina, Alabama, Kentucky, Michigan, Tennessee, and Virginia—offering investors a degree of diversification. Spanning approximately 51,192 net rentable square feet on 7.75 acres, the assets are situated in established commercial corridors, highlighting their long-term viability.

A key attraction for potential investors is the portfolio's robust lease structure. The weighted average remaining lease term stands at an impressive 13.6 years, significantly longer than typical commercial leases. Furthermore, each agreement incorporates scheduled rent escalations and renewal options, providing a built-in hedge against inflation and ensuring predictable cash flow growth over the long haul. The absolute triple-net lease structure places all property-related expenses, including taxes, insurance, and maintenance, squarely on the tenants, minimizing landlord responsibilities and maximizing passive income for investors.

The tenant roster boasts strong credit profiles. The CVS Pharmacy locations are strategically positioned in demographically sound areas, including proximity to the Asheville metro in North Carolina. The Pinnacle Bank branches serve key markets within the growing Nashville MSA and Roanoke, Virginia. Notably, the two NAPA Auto Parts stores are leased to Motor Parts & Equipment Corporation (MPE), a significant subsidiary of the Fortune 500 entity Genuine Parts Company. This association with a major, stable operator in the automotive aftermarket sector provides a high level of credit assurance.

ARCTRUST Exchange II DST aims to raise $10.04 million to finalize this acquisition. This capital raise is intended to provide accredited investors with access to institutional-quality real estate investments that offer attractive risk-adjusted returns. The structure of the DST allows for fractional ownership, making these types of stable, long-term net lease assets accessible to a broader range of sophisticated investors.

This transaction reflects a continuing trend in the private capital markets, where diversified, creditworthy net lease portfolios are highly sought after. The blend of essential services tenants—spanning financial, healthcare retail, and automotive aftermarket—creates a resilient investment profile capable of weathering economic fluctuations. The emphasis on long lease terms, contractual rent increases, and strong tenant covenants positions this offering as a compelling option for investors prioritizing capital preservation and steady income generation.