ARCTRUST Private Capital has acquired a seven-property, single-tenant net lease portfolio that will be syndicated to accredited investors through a Delaware statutory trust structure, ARCTRUST Exchange II DST. The portfolio consists of two Pinnacle Bank locations, three CVS Pharmacy locations and two NAPA Auto Parts locations, all operating on absolute triple-net leases. The seller or sellers and the transaction pricing were not disclosed.
The properties are spread across six states: North Carolina, Alabama, Kentucky, Michigan, Tennessee and Virginia. According to ARCTRUST Private Capital, the portfolio carries a weighted average remaining lease term of approximately 13.6 years. All leases include contractual rent increases and renewal options, providing a defined schedule of future cash flow changes over the remaining terms.
Each asset in the portfolio is leased on an absolute triple-net basis, placing responsibility for taxes, insurance and maintenance on the tenants rather than the landlord. This structure is intended to provide predictable, bond-like income streams while limiting operating expense exposure at the property level. Tenancy is diversified across national and regional credit profiles in the pharmacy, automotive aftermarket and community banking sectors.
The DST, branded as ARCTRUST Exchange II DST, is being positioned for accredited investors, including those seeking to complete 1031 exchanges. By aggregating multiple net-leased assets into a single trust vehicle, the sponsor aims to deliver diversification by tenant type and geography within one investment.
Chris Wadelin, CEO of ARCTRUST Private Capital, described the acquisition as a continuation of the firm's strategy of targeting essential, service-oriented real estate leased to creditworthy tenants on long-term net leases. He noted that combining national retail pharmacy, automotive aftermarket and established community banking locations across six different states is designed to provide a mix of tenant and market exposure that may appeal to investors focused on durable income and capital preservation.
The emphasis on long lease terms, scheduled rent escalations and absolute triple-net structures reflects ongoing investor appetite for stable income vehicles within the net lease segment. While specific transaction metrics and seller identity were not disclosed, the portfolio's profile aligns with structures commonly used by investors prioritizing predictable cash flow, low operational intensity and potential tax deferral benefits through 1031 exchanges.
