ExchangeRight Triples Nontraded REIT Credit Line to $600M, Eyes Bond Market Transition

ExchangeRight Essential Income REIT has expanded its revolving credit facility from $185 million to $600 million, more than tripling its borrowing capacity as the nontraded real estate investment trust pursues acquisitions and a longer-term transition to fixed-rate corporate bond financing.

Wells Fargo acted as the lead arranger, joined by Fifth Third Bank, KeyBanc Capital Markets, and Truist Bank as joint lead arrangers. Other participants in the facility include Synovus, First Horizon Bank, and Renasant Bank.

The facility includes delayed draw term loans allowing the REIT to draw up to $400 million over the next six months. An accordion feature allows the facility to expand to as much as $1 billion, subject to additional lender commitments. According to the company, it may use the funds to finance acquisitions and support portfolio refinancings.

ExchangeRight also said it plans to use the expanded facility to transition toward becoming a long-term fixed-rate corporate bond issuer. The company anticipates that the move will lower its overall cost of capital and improve the REIT’s adjusted funds from operations.

Joshua Ungerecht, a managing partner at ExchangeRight, said the size of the credit expansion reflects lender confidence in the firm despite broader market volatility.

“In the face of ongoing market volatility, this remarkable expansion … reflects tremendous confidence from some of the largest banks in the world in the strength of our platform and our long-term strategy,” said Ungerecht. “With this material increase to the REIT’s line of credit … we are excited to further scale and diversify the portfolio to protect investors’ income across market cycles.”

The REIT, through its operating partnership, ExchangeRight Income Fund operating partnership, LP, owns 397 properties in 37 states, as of March 31, 2026.

ExchangeRight and its affiliates’ vertically integrated platform includes more than $7.2 billion in assets under management diversified across more than 1,400 properties and 28 million square feet throughout 47 states as of March 31, 2026.

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