ExchangeRight Fully Subscribes $38.1M Seven-Property Essential Retail Portfolio

ExchangeRight has fully subscribed its $38.1 million Essential Income 5 DST. The portfolio comprises seven essential retail properties totaling 209,869 square feet across New York, Alabama, Washington, Missouri and Indiana. Tenants include Hy-Vee, Tractor Supply Company and Dollar General.  

The offering provides investors with a current cash flow rate of 5.50% and is supported by a 20-year master lease guarantee from ExchangeRight’s Essential Income REIT and its operating partnership. 

After an anticipated two-year hold, DST investors are expected to complete a tax-deferred 721 exchange into the Essential Income REIT, which currently owns 357 properties across 35 states leased to 40 primarily investment-grade, historically recession-resilient tenants. 

“The rapid subscription of Essential Income 5 DST underscores the soaring demand for our REIT fast-track DST series, which is structured to provide investors with an accelerated 721-exchange exit into our Essential Income REIT—the only REIT in our industry that has fully covered its distributions from operations since inception,” said Warren Thomas, managing partner at ExchangeRight. 

The close extends a string of fully subscribed offerings for the Pasadena-based firm, whose vertically integrated platform oversees more than $7.1 billion in assets across 1,400 properties in 47 states as of January 31, 2026.