ExchangeRight Fully Subscribes $38.1M Essential Income 5 DST
ExchangeRight, a sponsor of Delaware statutory trust and non-traded real estate investment trust offerings, has fully subscribed ExchangeRight Essential Income 5 DST amid what company leadership called soaring investor demand for REIT fast-track investment strategies.
“The rapid subscription of Essential Income 5 DST underscores the soaring demand for our REIT fast-track DST series, which is structured to provide investors with an accelerated 721 exchange exit into our Essential Income REIT – the only REIT in our industry that has fully covered its distributions from operations since inception,” said Warren Thomas, a managing partner at ExchangeRight.
Originally launched in August 2025, the full subscription is part of the company’s essential income DST series, designed to provide investors with accelerated access to the ExchangeRight’s Essential Income REIT via a tax-deferred Section 721 exchange after a two-year hold period.
According to the company, the $38.1 million portfolio of net-leased real estate is backed by historically recession-resilient tenants and provides investors with a current cash flow rate of 5.5%. The portfolio comprises seven properties tenanted by Hy-Vee, Tractor Supply Company, and Dollar General. The properties total 209,869 square feet of essential retail space across seven markets in five states: New York, Alabama, Washington, Missouri, and Indiana.
The offering is supported by a 20-year master lease guarantee from ExchangeRight’s Essential Income REIT and its operating partnership. This DST features tenant and geographic diversification, according to the company, and supports ExchangeRight’s scalable aggregation strategy and REIT pipeline.
After approximately two years, the exit plan for DST investors is to complete a tax-deferred 721 exchange into the Essential Income REIT. The exit has been designed to provide investors pro rata access to the REIT’s monthly income, broader diversification, increased growth potential, enhanced liquidity, and estate planning advantages.
The Essential Income REIT is currently invested in a diversified portfolio of 357 properties across 35 states with net leases backed by 40 historically recession-resilient and primarily investment-grade tenants.
“We designed this platform to meet the needs of pre-retirement and retired investors seeking stable, passive income, modest growth potential, and enhanced estate planning benefits provided via the increased scale and value of our $1.4+ billion diversified REIT portfolio,” added Thomas.
ExchangeRight and its affiliates’ vertically integrated platform features more than $7.1 billion in assets under management that are diversified across more than 1,400 properties and 27 million square feet throughout 48 states, as of Jan. 31, 2026.
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