ExchangeRight Fully Subscribes $41 Million Net-Leased All-Cash 12 DST
ExchangeRight, a sponsor of Delaware statutory trust and non-traded real estate investment trust offerings, has fully subscribed its Net-Leased All-Cash 12 DST, a private placement offering for accredited investors seeking the tax advantages of a 1031 exchange.
The offering, launched in February 2025, raised nearly $41.1 million and provides investors with monthly distributions at a current rate of 5.22%. According to ExchangeRight, the distribution payments are covered entirely by in-place revenues from the portfolio of properties owned by the DST.
The portfolio consists of six long-term net-leased properties tenanted by St. Luke’s Health Network, Sherwin-Williams, Tractor Supply, and Dollar Tree, with an initial weighted-average lease term of 14.2 years. The properties span 111,781 square feet across Florida, Georgia, Pennsylvania, and Texas.
At exit, investors may have the opportunity to participate in a tax-deferred 721 exchange of the approximately 80% non-financed equity into the ExchangeRight Essential Income REIT, according to the company, in addition to other exit options such as a 1031 exchange, a tax-deferred lump sum payment of 20%+ of their initial investment through a cash-out financing, or a combination of these options.
The Essential Income REIT is a non-traded real estate investment trust focused on net-leased properties operating in “necessity-based” retail and healthcare industries.
“The robust demand for our all-cash offerings continues to validate our investor-centric approach,” said Joshua Ungerecht, managing partner at ExchangeRight. “The full subscription of All-Cash 12 DST shows a clear investor and adviser preference for debt-free offerings that not only deliver stable income from primarily investment-grade tenants, but also provide strategic and tax-deferred exit optionality at the end of the term, including the potential 721 exchange into the Essential Income REIT.”
Last month, ExchangeRight announced that offerings from its net lease REIT platform are available on the iCapital Marketplace, a global fintech platform for alternative investments. Also recently, the company said Jeff Noblin had joined the firm as an external wholesaler to lead sales in Texas and its bordering states.
ExchangeRight and its affiliates’ vertically integrated platform features more than $6.7 billion in assets under management that are diversified across more than 1,300 properties and 26 million square feet throughout 47 states, as of Aug. 31, 2025.
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