ExchangeRight fully subscribes $27M debt-free net-lease DST
What's the deal? ExchangeRightDealroom has a profile for this one. Try Dealroom → has fully subscribed its Net-Leased All-Cash 19 DST, a $26.95 million debt-free offering that gives 1031 exchange and cash investors access to net-leased real estate. The Pasadena, California-based firm said the offering is now closed to new investors.
What's inside? The unleveraged portfolio holds three properties tenanted by Fred MeyerDealroom has a profile for this one. Try Dealroom →, Hobby LobbyDealroom has a profile for this one. Try Dealroom →, and VerizonDealroom has a profile for this one. Try Dealroom →, totalling 122,149 square feet across Washington, Alabama, and Illinois. The assets carry an initial weighted-average lease term of 10.7 years.
Why now? The offering targets investors seeking stability, with a current annualised distribution rate of 5.15% that ExchangeRight says is covered entirely by in-place lease revenue. It is backed by a 20-year master lease guaranteed by the Essential Income REITDealroom has a profile for this one. Try Dealroom →, a $1.7 billion-plus diversified portfolio.
"All-Cash 19 DST reflects continued investor demand for debt-free access to necessity-based real estate that has historically remained resilient through economic downturns," said Joshua Ungerecht, managing partner at ExchangeRight.
What's the endgame? At exit, the structure offers investors a tax-deferred cash-out, a 1031 exchange, a 721 exchange into the Essential Income REIT, or a combination. Pending future financing, ExchangeRight intends to offer a tax-deferred lump sum targeting 20% of initial investment, plus a 721 exchange of the remaining roughly 80% equity into the REIT.
What could go wrong? ExchangeRight cautions there is no guarantee the offering's objectives, including its exit strategies, will be achieved. Past performance, it notes, does not guarantee future results.
The signal: ExchangeRight now manages more than $7.7 billion in assets across over 1,400 properties and 30 million square feet in 47 states, as of 31 July 2026. The full subscription points to steady appetite for necessity-based, recession-resilient real estate among tax-conscious investors.
Image credit: Mr.TinDC
Read more: AP News
