ExchangeRight Essential Income REIT Launches Class D Shares for RIAs
ExchangeRight Essential Income REIT, a non-traded real estate investment trust sponsored by ExchangeRight and focused on net-leased properties operating in “necessity-based” retail and healthcare industries, announced the launch of new Class D shares. Touting “one of the industry’s lowest fee structures,” according to the company, the Class D shares feature 0% net upfront commissions; no placement agent fee; and no advisory, financing, or disposition fees.
The shares are specifically designed for registered investment advisers and custodial platforms and offer a current monthly net tax-efficient income of 6.1% annualized. ExchangeRight leadership said the shares will allow for a more streamlined transaction and ongoing investment tracking experience across custodial platforms.
The REIT has delivered and fully covered $9.82 million in cash distributions during the first quarter of 2025 through cash flows from operating activities – extending its record of uninterrupted monthly distributions and had been generating “compelling total returns with reduced volatility to investors since inception.” By launching the new share class, and consolidating Class I, D, S, and A shares in a single private placement memorandum, ExchangeRight aims to improve accessibility and expand availability of the Essential Income REIT across major custodial platforms.
“We are continually seeking ways to enhance our offerings and make our historically recession-resilient net-leased real estate strategy more accessible for advisers and their clients,” said Joshua Ungerecht, a managing partner at ExchangeRight. “The introduction of our Class D shares, with their distinctly low fee structure and streamlined access, underscores our commitment to empowering RIAs to efficiently integrate our conservative real estate investments into client portfolios.”
Last month, ExchangeRight fully subscribed its first offering in its 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 Essential Income REIT through a tax-deferred 721 exchange after a targeted two-year hold period.
ExchangeRight is a sponsor of Delaware statutory trust and non-traded real estate investment trusts. The company 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 May 31, 2025.
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