ExchangeRight Closes First Essential Income DST, Enabling Accelerated REIT Access

ExchangeRight, a sponsor of Delaware statutory trust and non-traded real estate investment trusts, has fully subscribed its first offering in ExchangeRight’s new Essential Income DST platform.

Essential Income 1 DST, a $25.1 million portfolio of net-leased real estate, is designed to provide investors with accelerated access to the sponsor’s Essential Income REIT through a tax-deferred 721 exchange after a targeted two-year hold period.

“We launched the Essential Income DST platform to provide investors with new accelerated access to ExchangeRight’s Essential Income REIT, which is designed to provide investors with increased diversification, enhanced liquidity, and long-term growth potential,” said Joshua Ungerecht, a managing partner at ExchangeRight.

The portfolio, backed by primarily investment-grade companies operating in necessity-based industries according to ExchangeRight, also provides investors with monthly distributions at a current rate of 5%, covered entirely by in-place rents.

The offering consists of 13 net-leased properties tenanted by Dollar General, NAPA Auto Parts, Family Dollar, and Dollar Tree. It spans 12 markets across four states, comprising 124,315 square feet.

“We are grateful for the trust that investors, representatives, and advisers have placed in the first offering of our new Essential Income DST series as we continue to develop new ways of investing in diversified portfolios of historically recession-resilient real estate to meet the particular needs of investors,” added Ungerecht.

In reporting earlier this month by AltsWire, ExchangeRight fully subscribed Net-Leased All-Cash 11 DST, a $40.8 million portfolio comprised of six long-term net-leased properties with an initial weighted-average lease term of 14.4 years. The DST’s exit strategy is structured to provide investors with a tax-deferred cash-out financing option, along with the potential to similarly complete a 721 exchange into the Essential Income REIT.

ExchangeRight and its affiliates’ vertically integrated platform features more than $6.5 billion in assets under management that are diversified across more than 1,300 properties and 25 million square feet throughout 47 states, as of April 30, 2025.

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