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ExchangeRight’s First Essential Income DST Offering Fully Subscribed, Enabling Accelerated REIT Access

June 05, 2025•2 min read

ExchangeRight, one of the nation’s leading providers of diversified REIT and DST investments, has announced that the company has fully subscribed its first offering in ExchangeRight’s new Essential Income DST platform. Essential Income 1 DST is designed to provide investors with accelerated access to the Essential Income REIT, through a tax-deferred 721 exchange, after a targeted two-year hold period. Essential Income 1 DST is a closed offering and is not accepting new investors.

The $25.21 million portfolio of net-leased real estate, backed by primarily investment-grade companies operating in necessity-based industries, also provides investors with monthly distributions at a current rate of 5.00%, covered entirely by in-place rents. The offering consists of 13 net-leased properties tenanted by Dollar General, NAPA Auto Parts, Family Dollar, and Dollar Tree. The portfolio’s properties span 12 markets across 4 states, comprising 124,315 square feet of essential, necessity-based retail space.

“We launched the Essential Income DST platform to provide investors with new accelerated access to ExchangeRight’s Essential Income REIT, which is designed to provide investors with increased diversification, enhanced liquidity, and long-term growth potential,” said Joshua Ungerecht, a managing partner at ExchangeRight. “We are grateful for the trust that investors, representatives, and advisors have placed in the first offering of our new Essential Income DST series as we continue to develop new ways of investing in diversified portfolios of historically recession-resilient real estate to meet the particular needs of investors.” The past performance of ExchangeRight does not guarantee future performance.

About ExchangeRight

ExchangeRight’s and its affiliates’ vertically integrated platform features more than $6.5 billion in assets under management that are diversified across over 1,300 properties, and 25 million square feet throughout 47 states, as of April 30, 2025. ExchangeRight pursues its passion to empower people to be secure, free, and generous by providing REIT, fund, and 1031 DST portfolios to accredited investors that target secure capital, stable income, and strategic exits. All of ExchangeRight’s current and past offerings, including 34 successful full-cycle offerings, have historically met or exceeded their return objectives since ExchangeRight’s inception. On behalf of our investors nationwide, the company structures and manages net-leased portfolios of assets backed primarily by investment-grade corporations that have successfully operated in the necessity-based retail and healthcare industries. Past performance does not guarantee future results. “Investment-grade” applies to tenants whose long-term corporate debt rating is considered investment grade by Standard & Poor’s, Moody’s, and/or Fitch. An investment-grade rating is a rating that indicates that a corporate bond has a relatively lower risk of default than a corporate bond with a speculative grade. Please visit www.exchangeright.com for more information.

Gerald F. "Jerry" Baker, III

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The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the Sponsor’s Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney.

There are material risks associated with investing in DST properties and real estate securities including liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potentially adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk. Because investor situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation.

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