ExchangeRight Closes $52.85 Million Essential Income 9 DST

ExchangeRight has fully subscribed its Essential Income 9 DST, a $52.85 million offering backed by three net-leased properties, the sponsor said, continuing a Delaware statutory trust series designed to move investors into the company’s Essential Income REIT through a tax-deferred Section 721 exchange. The offering is now closed to new investors.

Essential Income 9 DST is unleveraged and holds three properties totaling 205,857 square feet in South Carolina, Georgia, and Virginia, tenanted by Pepsi Bottling Ventures and Tractor Supply Company, and offers investors a current cash flow rate of 5.35%, according to the company. The DST carries a 20-year master lease guarantee from the Essential Income REIT and its operating partnership. After a targeted two-year hold, ExchangeRight said, investors are positioned to exchange into the REIT for pro rata income, broader diversification, and estate-planning advantages, though ExchangeRight said there is no guarantee the DST will achieve that exit strategy or its investment objectives.

“Essential Income 9 DST’s rapid subscription reflects the strong investor demand we are seeing for the accelerated, tax-deferred pathway the Essential Income DST series provides into the Essential Income REIT,” said Joshua Ungerecht, managing partner at ExchangeRight. “This offering is structured to protect investor capital and provide stable income throughout its targeted two-year hold period, with high-quality necessity-based retail and industrial properties backed by investment-grade tenants and a 20-year master lease, after which investors can access the increased diversification and enhanced depreciation benefits of the Essential Income REIT via a tax-deferred 721 exchange.”

The closing extends a series ExchangeRight introduced in 2025 with Essential Income 1 DST, a $25.1 million offering built on the same two-year-hold, 721-exchange structure. The series’ two most recent closings came earlier this year: Essential Income 7 DST closed at $38.95 million over the summer, and Essential Income 8 DST followed less than a month later at $15.38 million, both carrying a 5.5% cash flow rate.

Essential Income REIT held 436 properties across 38 states as of June 30, up from 397 properties in 37 states at the end of the first quarter, according to the company, growth that came as the REIT posted a 13% increase in net asset value to $905.7 million in the second quarter, driven in part by a refinanced credit facility with Wells Fargo.

ExchangeRight’s broader platform spans more than $7.7 billion in assets under management across more than 1,400 properties and 30 million square feet in 47 states, as of July 31, according to the company.

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