ExchangeRight has fully subscribed its $28.85 million Essential Income 4 DST, which is a private placement structured for investors seeking access to the section 721 exchange after a two-year holding period. 

The offering, which launched last June, consists of “net-leased” real estate and provides investors with monthly distributions at a rate of 5.5%.  

The portfolio contains eight retail properties totaling 88,851 square feet across four states, which are leased to Dollar General, CVS Pharmacy, Sprouts Farmers Market, and Advance Auto Parts. 

The offering is supported by a 20-year master lease guarantee from the Essential Income REIT and its operating partnership. Also, the payments are covered by the in-place lease profit from the properties that are owned by the DST, ExchangeRight said. 

“We are encouraged by the continued demand for our Essential Income DST platform, which is structured to provide investors with accelerated access to ExchangeRight’s Essential Income REIT,” Warren Thomas, a managing partner at ExchangeRight, said. “This platform is a cornerstone of our strategy, intended to serve the evolving needs of pre-retirement and retired investors, by delivering stable, passive income and enhanced diversification, value, and estate planning options through tax-deferred access to the REIT.” 

The Essential Income REIT is currently invested in a diversified portfolio of 359 properties with long-term net leases backed by 39 historically recession-resilient tenants. 

Earlier this month, ExchangeRight fully subscribed its $23.3 million Net-Leased All-Cash 14 DST offering, which feeds into the company’s Essential Income REIT acquisition pipeline. 

The four-property portfolio spans 74,736 square feet across Texas, Alabama, and Pennsylvania, leased long-term to Wawa, Dollar General, Tractor Supply, and Dollar Tree.