ExchangeRight Adds $26.95M to Essential Income REIT Pipeline

ExchangeRight has fully subscribed its $26.95 million Net-Leased All-Cash 19 DST, extending the Pasadena, California-based sponsor’s run of completed Delaware statutory trust offerings.

The debt-free portfolio comprises three properties leased to Fred Meyer, Hobby Lobby and Verizon. The assets span 122,149 square feet in Washington, Alabama and Illinois and had an initial weighted average remaining lease term of 10.7 years.

The closed offering targets monthly distributions at a 5.15% annualized rate, funded entirely by current lease revenue, according to ExchangeRight.

All-Cash 19 is supported by a 20-year master lease guaranteed by ExchangeRight’s Essential Income REIT, a diversified net-lease portfolio valued by the company at more than $1.7 billion. Its holdings include industrial, necessity-retail and healthcare properties.

“All-Cash 19 DST reflects continued investor demand for debt-free access to necessity-based real estate,” Managing Partner Joshua Ungerecht said.

If future financing is completed, ExchangeRight intends to offer investors a tax-deferred payment targeting 20% of their original investment. The remaining equity could be contributed to the REIT through a Section 721 exchange.

The close follows five other recently subscribed offerings. ExchangeRight oversees more than $7.7 billion across over 1,400 properties and 30 million square feet in 47 states, as of July 31.

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