ExchangeRight Fully Subscribes $22.6 Million Essential Income 3 DST
ExchangeRight, a sponsor of Delaware statutory trust and non-traded real estate investment trust offerings, has fully subscribed ExchangeRight Essential Income 3 DST, a private placement structured for accredited investors seeking to complete a 1031 exchange.
The offering is part of the company’s Essential Income DST series, structured to allow investors potential access to the Essential Income REIT via a tax-deferred Section 721 exchange after a two-year hold period.
The $22.6 million offering launched in April 2025 and provides investors with monthly distributions at a current rate of 5.5%, covered entirely by in-place lease revenue according to ExchangeRight.
The DST owns a portfolio of seven long-term net-leased properties tenanted by AutoZone, Dollar General, Tractor Supply, Dollar Tree, and Truist Bank. The portfolio’s properties span 67,374 square feet across Florida, Alabama, Nevada, and New Jersey.
The offering is supported by a 20-year master lease guarantee from the Essential Income REIT and its operating partnership. According to ExchangeRight, the DST adds tenant and geographic diversification within its broader aggregation strategy and REIT pipeline.
“We are pleased to continue executing our strategy to meet the evolving financial objectives of our investors,” said Joshua Ungerecht, a managing partner at ExchangeRight. “The full subscription of Essential Income 3 DST reflects the market’s strong appetite for DSTs that offer an accelerated path to REIT ownership.”
At disposition, investors are expected to have the option to complete the 721 exchange into the Essential Income REIT.
“This offering, consistent with our Essential Income DST platform’s objective, is designed to efficiently transition investors into the Essential Income REIT upon exit, providing them with greater diversification, access to liquidity potential, and continued consistent monthly income backed by necessity-based tenants,” added Ungerecht.
The Essential Income REIT is currently invested in a diversified portfolio of 361 properties with long-term net leases backed by 39 historically recession-resilient tenants.
Last month, ExchangeRight closed its Net-Leased All-Cash 15 DST after raising $25 million from accredited investors. The debt-free offering provides investors with monthly distributions at a current rate of 5.2%.
ExchangeRight and its affiliates’ vertically integrated platform features more than $6.9 billion in assets under management that are diversified across more than 1,400 properties and 27 million square feet throughout 48 states, as of Oct. 31, 2025.
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