ExchangeRight Fully Subscribes $41.9M Net-Lease DST

ExchangeRight has fully subscribed its $41.9 million Net-Leased All-Cash 17 DST, continuing a run of oversubscribed offerings and expanding the acquisition pipeline for its Essential Income REIT. 

The portfolio includes six long-term net-leased properties totaling more than 148,000 square feet across Texas, Illinois and Ohio. Tenants include Sprouts Farmers Market, Tractor Supply Company, Hobby Lobby, WellMed and Dollar Tree, with a weighted-average lease term of 14.1 years. The portfolio generates monthly distributions at a current rate of 5.15%, fully covered by in-place lease revenue. 

“Our aggregation strategy is designed to leverage the synergies between our DST and REIT platforms to maximize value for our investors,” said Warren Thomas, Managing Partner at ExchangeRight. “By focusing on necessity-based retail and healthcare properties with primarily investment-grade tenants, All-Cash 17 DST investors can benefit from capital preservation and stable cash flow during the offering’s hold period.” 

The DST structure offers multiple exit pathways, including tax-deferred 1031 exchanges, a 721 exchange into the Essential Income REIT, or a cash-out option. Pending future financing, investors may also have the opportunity to receive a tax-deferred lump sum payment exceeding 20% of their initial investment. 

The close extends a string of fully subscribed offerings for the Pasadena-based firm, whose vertically integrated platform oversees more than $7.2 billion in assets under management  diversified across over 1,400 properties, and 28 million square feet throughout 47 states, as of March 31, 2026.