ExchangeRight Fully Subscribes $28.85M Essential Income 4 DST
ExchangeRight, a sponsor of Delaware statutory trust and non-traded real estate investment trust offerings, has fully subscribed its $28.85 million ExchangeRight Essential Income 4 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 offering, which launched in June 2025, raised $28.85 million and currently provides investors with monthly distributions at an annualized rate of 5.5%. According to the company, the distribution payments are covered entirely by in-place lease revenues from the portfolio of properties owned by the DST.
The portfolio is comprised of eight net-leased retail properties totaling 88,851 square feet across four states, leased to Sprouts Farmers Market, Dollar General, CVS Pharmacy and Advance Auto Parts.
The offering is supported by a 20-year master lease guarantee from the Essential Income REIT and its operating partnership. The DST adds tenant and geographic diversification within ExchangeRight’s broader aggregation strategy and REIT pipeline.
At disposition, investors are expected to have the option to complete a tax-deferred Section 721 exchange into the Essential Income REIT.
The Essential Income REIT is currently invested in a diversified portfolio of 359 properties with long-term net leases backed by 39 historically recession-resilient tenants.
“We are encouraged by the continued demand for our Essential Income DST platform, which is structured to provide investors with accelerated access to ExchangeRight’s Essential Income REIT,” said Warren Thomas, a managing partner at ExchangeRight. “This platform is a cornerstone of our strategy, intended to serve the evolving needs of pre-retirement and retired investors, by delivering stable, passive income and enhanced diversification, value, and estate planning options through tax-deferred access to the REIT.”
In the past two months, the company also fully subscribed its Net-Leased All-Cash 14 DST and Net-Leased All-Cash 12 DST offerings. In addition, ExchangeRight appointed Jeff Noblin as an external wholesaler to lead sales in Texas and its bordering states.
ExchangeRight and its affiliates’ vertically integrated platform reported more than $6.8 billion in assets under management across more than 1,400 properties and 27 million square feet throughout 48 states, as of Sept. 30, 2025.
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