ExchangeRight Fully Subscribes $40.8 Million Net-Leased All-Cash 11 DST

ExchangeRight, a sponsor of Delaware statutory trust and non-traded real estate investment trusts, has fully subscribed Net-Leased All-Cash 11 DST, a $40.8 million portfolio backed by primarily investment-grade companies operating in necessity retail.

According to the company, the DST provides investors with monthly distributions at a current rate of 5.2% covered 100% by in-place revenues from the offering.

The offering consists of six long-term net-leased properties tenanted by Tractor Supply, Reasor’s Grocery, Dollar General Market and Sherwin-Williams, with an initial weighted-average lease term of 14.4 years. The portfolio’s properties span 149,575 square feet and are located in Texas, Maryland, and Oklahoma.

The Net-Leased All-Cash 11 DST exit strategy is structured to provide investors with a tax-deferred cash-out financing option, along with the potential to complete a 1031 exchange, a 721 exchange into the Essential Income REIT, cash out, or any combination of these options at exit, according to the company.

Pending successful future financing, ExchangeRight is intending to provide investors with the option to receive a tax-deferred lump sum payment of 20% or more of their initial investment through a cash-out financing, and a tax-deferred 721 exchange of the 70% to 80% non-financed equity into the Essential Income REIT, the company continued.

“We are honored by the continued trust investors place in ExchangeRight’s conservative investment strategy,” said Warren Thomas, managing partner at ExchangeRight. “The strong response to this All-Cash offering highlights the ongoing demand for long-term net-leased investments backed by tenants operating in necessity-based industries.”

Last month, ExchangeRight similarly announced the full subscription of Net-Leased All-Cash 10 DST. That portfolio, though smaller at nearly $28.5 million, also provides investors with monthly distributions at a current rate of 5.2% and features five properties located across Texas as well as Arizona.

“Our focus remains on structuring offerings that align with investors’ long-term goals of stable monthly income, capital preservation, and strategic exit optionality,” added Thomas.

ExchangeRight 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 April 30, 2025.

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