ExchangeRight Fully Subscribes $30.68M Essential Income 10 DST
ExchangeRight has fully subscribed Essential Income 10 DST, a $30.68 million portfolio of four net-leased properties, the sponsor said. The offering, now closed to new investors, is the 10th Delaware statutory trust in ExchangeRight’s Essential Income DST series. The series is structured to move investors into the company’s Essential Income REIT through a tax-deferred Section 721 exchange after a targeted two-year hold.
The unleveraged portfolio totals 116,302 square feet across Arkansas, Illinois, Iowa, and Oklahoma. Its four properties are leased to five tenants: CVS Pharmacy, Dollar Tree, Hobby Lobby, Mardel, and Maverik. According to ExchangeRight, the offering carries a current cash flow rate of 5.35% and a 20-year master lease guaranteed by the Essential Income REIT’s operating partnership.
The rate matches Essential Income 9 DST, a $52.85 million, three-property offering ExchangeRight fully subscribed in September. It is 15 basis points below the 5.5% rate on the two closings before that: Essential Income 7 DST at $38.95 million in July, and Essential Income 8 DST at $15.38 million later that month.
“Our Essential Income DSTs are structured to provide an accelerated tax-deferred path into the Essential Income REIT, which has fully covered its dividend with Adjusted Funds From Operations since its inception,” said Joshua Ungerecht, managing partner of ExchangeRight. “The resilient performance of the Essential Income REIT has made it a compelling final destination for DST investors, which is one reason why we have seen such strong and increasing demand for our REIT Fast-Track DST series.”
As of Sept. 30, the Essential Income REIT held 475 properties net-leased to 44 tenants across 39 states, according to ExchangeRight. That is up from 436 properties in 38 states as of June 30. In a filing with the SEC, the REIT’s trustee declared a net asset value of approximately $994 million, or $27.72 per share, as of Sept. 30. That compares with $905.7 million, or $27.63 per share, at the end of the second quarter.
The REIT has continued to add assets in exchange for operating partnership units:
- In October, it acquired a Dow-leased research and development campus in Lake Jackson, Texas, through a 721 exchange; and
- It also closed on two more legacy ExchangeRight DST portfolios. Ungerecht said those deals bring the total number of ExchangeRight DSTs absorbed by the REIT to 30.
The Essential Income 10 close follows ExchangeRight’s October full subscription of Net-Leased All-Cash 20 DST, a $17.8 million debt-free offering.
ExchangeRight Real Estate ranked third among DST sponsors by equity raised through October, according to Mountain Dell Consulting data AltsWire reported Nov. 4. It raised approximately $694.7 million, an 8.28% market share, behind Ares Real Estate Exchange and Blue Owl Real Estate Exchange. DST sales across the industry totaled approximately $8.39 billion through October, up 26% from the same period in 2025.
ExchangeRight and its affiliates had more than $8.1 billion in assets under management as of Oct. 31, according to the company. Those assets span more than 1,400 properties and 33 million square feet in 47 states.
For more ExchangeRight news, visit its directory page.
