ExchangeRight Fully Subscribes $17.8M Net-Leased All-Cash 20 DST
ExchangeRight has fully subscribed Net-Leased All-Cash 20 DST, a $17.8 million debt-free Delaware statutory trust offering of net-leased retail properties designed for 1031 exchange and cash investors.
According to the company, the offering is designed to provide investors monthly distributions, currently at an annualized rate of 5.2%, which is covered entirely by in-place lease revenue. The unleveraged portfolio consists of six long-term net-leased properties tenanted by Tractor Supply Company, Dollar General, NAPA Auto Parts, Dollar Tree, and O’Reilly Auto Parts. The properties total 75,237 square feet across Texas, South Carolina, and Alabama, with an initial weighted-average lease term of 9.9 years. ExchangeRight characterizes the tenants as historically recession-resilient.
The offering is backed by a 20-year master lease from the Essential Income REIT’s operating partnership. The portfolio adds to the acquisition pipeline for the nontraded REIT, the firm said.
At exit, the offering is structured to provide investors a tax-deferred cash-out financing option, along with the potential to complete a 1031 exchange, a 721 exchange into the Essential Income REIT, a cash-out, or a combination of those options. Pending successful future financing, the company said it intends to provide investors a tax-deferred lump-sum payment of 20% or more of their initial investment through cash-out financing. That payment would be paired with a tax-deferred 721 exchange of the approximately 80% of non-financed equity into the REIT.
“Net-Leased All-Cash 20 DST underscores investors’ continued preference for debt-free ownership of necessity-based real estate that has proven resilient across market cycles,” said Joshua Ungerecht, a managing partner at ExchangeRight. “Pairing the tenant strength of All-Cash 20 DST’s portfolio with a 20-year master lease from our Essential Income Operating Partnership gives investors multiple layers of confidence.”
The All-Cash 20 DST close follows ExchangeRight’s full subscription of Net-Leased All-Cash 19 DST in August. That was a $26.95 million debt-free offering with a 5.15% annualized distribution rate and a 10.7-year weighted-average lease term.
The sponsor closed two more DSTs in September:
- Net-Leased Portfolio 74 DST, a $63.34 million leveraged offering carrying a 42.23% loan-to-value ratio.
- Essential Income 9 DST, a $52.85 million offering structured for a 721 exchange into the REIT after a targeted two-year hold.
ExchangeRight Real Estate ranked third among DST sponsors by equity raised through September. It raised approximately $620 million, an 8.2% market share, according to Mountain Dell Consulting data reported by AltsWire earlier this month.
ExchangeRight and its affiliates’ vertically integrated platform features more than $7.8 billion in assets under management, according to the company. The platform is diversified across more than 1,400 properties and 31 million square feet throughout 47 states, as of Sept. 30, 2026.
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