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Executive Summary

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AX Diversified Retail Portfolio DST

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Offering summary

AX Diversified Retail Portfolio DST is a $89,517,000 equity offering sponsored by Apollo RE Exchange, LLC. The trust owns a portfolio of 6 net lease essential retail, home improvement, and wholesale club properties encompassing 668,521 square feet across Indiana, Alabama, Texas, Mississippi, and Florida. The assets are occupied by major retail tenants including Kroger, Lowe's, Sam's Club, and BJ's Wholesale Club. The portfolio was acquired for $82,270,000 at a weighted average acquisition cap rate of 6.0%. The offering is essentially unleveraged with a reported offering LTV of 0.28%. Projected cash distributions begin at 4.6% in Year 1 and average 4.7% over the full term. Total front-end fees and offering expenses are $6,712,000, representing approximately 7.5% of total acquisition cost.

Capital raise

0.0% of the offering is closed

$89,517,000 still available

Closed$0 Reservations$0 Available$89,517,000
$0 of $89,517,000 placed
Total offering equity

$89,517,000

Closed equity

$0

0.0% of offering
Current reservations

$0

Pending subscription
Available equity

$89,517,000

Open for subscription

The sponsor is raising $89,517,000 in offering equity across Delaware Statutory Trust units. Upfront offering expenses and load equal $6,712,000, which constitutes 7.5% of the portfolio's base acquisition cost.

Offering terms

Sector

Retail

Investment Category

DST

Projected First Year Cashflow

4.6%

Avg. 4.7% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$89,517,000

$14,919,500 per unit

Offering Debt

—

All-equity offering

LTV

—

On acquisition price

Units / Tenants

6

715 South Tillotson Avenue, Muncie, Indiana 47304; 8150 Rockville Road, Indianapolis, Indiana 46214; 5555 South Buckner Boulevard, Dallas, Texas 75228; 12200 Atlantic Boulevard, Jacksonville, Florida 32225; 2301 Woodmont Drive, Columbus, Mississippi 39705; 615 George Wallace Drive, Gadsden, Alabama 35903

Property Age

The properties in the portfolio were originally built between 1991 and 2002, with recent renovations completed between 2018 and 2026 (e.g., Gadsden Lowe's 2002/2020, Columbus Lowe's 2001/2020, Dallas Sam's Club 1991/2022, Jacksonville BJ's 1999/2026, Muncie Kroger 1996/2018, Indianapolis Kroger 1995/2025).

The offering comprises a 668,521 square foot essential retail portfolio of 6 properties acquired for $82,270,000. It features an initial Year 1 cash flow yield of 4.6% and an acquisition cap rate of 6.0%. The capital structure utilizes virtually no debt with an offering LTV of 0.28% on an $89,517,000 total equity raise.

Strengths & considerations

Key strengths

  • Unleveraged Structure

    0.28% LTV

    Near-zero leverage minimizes debt service burden, interest rate exposure, and maturity refinancing risk.

  • Tenant & Geographic Diversification

    6 Properties / 5 States

    Assets are spread across Indiana, Alabama, Texas, Mississippi, and Florida with established retail brands.

  • Sponsor Platform Scale

    $1,000,000,000,000 AUM

    The sponsor operates within an institutional-grade platform with significant capital and management scale.

Key considerations

  • Front-End Load Drag

    $6,712,000

    Total upfront fees and expenses represent 7.5% of acquisition costs, reducing starting investor yield to 4.6%.

  • Original Building Vintage

    1991–2002

    Original construction vintages range from 1991 to 2002, although renovations have occurred between 2018 and 2026.

  • Ongoing Fee Structure

    $447,585 / yr

    The trust incurs an annual asset management fee alongside a $275,000 master tenant reserve contribution.

The portfolio provides geographic and tenant diversification across 5 states and established national retail brands including Kroger, Lowe's, Sam's Club, and BJ's. The virtually unleveraged structure (0.28% LTV) eliminates material debt refinancing and interest rate risks for investors. Furthermore, the sponsor brings massive scale with $1,000,000,000,000 in reported assets under management.

Sources, uses & fee assessment

Capital Sources

$89.52MTotal offering

  • Offering Equity

    100.0% of offering

    $89.52M

Where the Capital Goes

$89.52MDeployed

  • Acquisition Cost

    91.9% of offering

    $82.27M

  • Offering Expenses

    7.5% of offering

    $6.71M

  • Reserves

    0.3% of offering

    $275K

  • Unallocated / other uses

    0.3% of offering

    $260K

Total Offering

$89.52M

All equity — no mortgage debt

Acquisition Cost

$82.27M

91.9% of offering to the property

Total Fees & Expenses

$6.71M

6712000.00% of offering

Reserves

$275K

0.3% of offering

The total offering proceeds of $89,517,000 fund the $82,270,000 property acquisition cost, $6,712,000 in total front-end fees and offering expenses, and $275,000 in master tenant reserves. Front-end load components include a $1,342,000 dealer fee, $895,000 in organizational and offering expenses, and $260,000 in title and recording costs.

Risk read

Tone reflects relative strength, not a rating

Debt Structure

Conservative

With an offering LTV of 0.28%, the portfolio is virtually debt-free, insulating cash flows from financing markets.

Asset Age & Condition

Moderate

Properties date from 1991 to 2002, though modernizations occurred between 2018 and 2026 across all sites.

Front-End Load

Elevated

Total fees and expenses of $6,712,000 (7.5% of acquisition cost) create an initial equity dilution for investors.

Tenant Concentration

Diversified

Cash flow is distributed across 6 net lease assets occupied by Kroger, Lowe's, Sam's Club, and BJ's Wholesale.

Portfolio assets were originally constructed between 1991 and 2002, requiring ongoing capital oversight despite recent renovations completed between 2018 and 2026. The offering features an upfront load of $6,712,000 that lowers investor entry yields relative to the 6.0% acquisition cap rate. Additionally, performance depends on single-tenant lease continuity across essential retail formats in multiple regional markets.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load

6712000.00%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

108.8%

Offering price ÷ acquisition price

Price per Unit

$14,919,500

Offering price ÷ 6 units

The portfolio was acquired at a 6.0% acquisition cap rate generating $4,890,945 in master tenant income. Upfront fees and offering expenses total $6,712,000 (7.5% load relative to acquisition price), moderating the investor Year 1 distribution rate to 4.6% (4.7% full term average). The trust also incurs an annual asset management fee of $447,585 alongside $275,000 in master tenant reserves.

Sponsor

Sponsor

Apollo RE Exchange, LLC

Apollo RE Exchange, LLC serves as sponsor, drawing on an institutional asset platform managing $1,000,000,000,000 in total assets under management across commercial real estate sectors.

Institutional Sponsor$1T AUM PlatformNet Lease RetailNational Reach
Portfolio

• The AX Diversified Retail Portfolio, DST comprises 6 net lease retail properties totaling 668,521 square feet. • The properties include Muncie Kroger (Muncie, IN), Indianapolis Kroger (Indianapolis, IN), Gadsden Lowe's (Gadsden, AL), Dallas Sam's Club (Dallas, TX), Columbus Lowe's (Columbus, MS), and Jacksonville BJ's (Jacksonville, FL).

Properties owned or managed

AUM

$1,000,000,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

Retail

Stated strategy

View Sponsor Dossier

Apollo RE Exchange, LLC acts as the sponsor, backed by an institutional asset management platform reporting $1,000,000,000,000 in assets under management. The sponsor manages the acquisition, structuring, and master lease operations across the 6-property retail portfolio.