ExchangeRight Real Estate, LLC

ExchangeRight is a real estate investment firm headquartered in Pasadena, California, specializing in tax-advantaged real estate solutions. The company's core business involves acquiring and managing net-leased assets, primarily within the necessity-based retail and healthcare sectors. Its mission is to empower investors, industry partners, and its team to be secure, free, and generous by faithfully stewarding investor wealth through strategic real estate investments.

ExchangeRight offers a range of investment products, including Delaware Statutory Trusts (DSTs) such as REIT Fast-Track DSTs, All-Cash DSTs, and Financed DSTs, as well as its flagship Essential Income REIT. These offerings are designed for accredited investors seeking stable income, capital preservation, and strategic exits, often utilizing 1031 exchanges for tax deferral. The firm focuses on properties with investment-grade tenants operating in recession-resilient industries and also manages diversified value-add portfolios of shopping centers through ExchangeRight Marketplaces.

As of March 31, 2026, ExchangeRight manages over $7.2 billion in assets across more than 1,400 properties in 47 states. The company has a notable track record, with all its offerings historically meeting or exceeding cash flow projections and maintaining 100% rent collection across its net-leased assets since its inception. Recent developments include the full subscription of its Net-Leased All-Cash 17 DST in April 2026 and a significant increase in the Essential Income REIT's credit facility from $185 million to $600 million. Dave Van Steenis was promoted to President in February 2026, joining Managing Partners Joshua Ungerecht and Warren Thomas in leadership. While the Essential Income REIT became a publicly reporting company in Q3 2023, its shares are not listed or traded on any stock exchange.

Latest updates

$41.9 Million DST Fully Subscribed, Fuels ExchangeRight REIT Pipeline

Event summary

  • ExchangeRight has fully subscribed a $41.9 million DST (Net-Leased All-Cash 17 DST).
  • The DST portfolio comprises 17 properties totaling 148,408 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 DST offers investors a current distribution rate of 5.15%, fully backed by in-place lease revenue.
  • The DST’s exit strategy includes potential tax-deferred cash-out financing and 721 exchange into ExchangeRight’s Essential Income REIT.

The big picture

This DST subscription highlights ExchangeRight’s strategy of layering DSTs with REITs to offer investors tax-advantaged income and potential capital appreciation. With $7.2 billion in AUM, ExchangeRight is a significant player in the private capital markets, leveraging the 1031 exchange structure to attract investors. The full subscription suggests continued demand for this type of net-leased real estate product, particularly in a low-interest-rate environment.

What we're watching

Financing Risk
The success of the planned cash-out financing, offering investors a 20%+ lump sum, remains contingent on future financing availability, introducing potential execution risk.
REIT Integration
The pace at which ExchangeRight integrates these DST properties into the Essential Income REIT will determine the realized benefits of their stated aggregation strategy and impact REIT diversification.
Tenant Resilience
While tenants are described as operating in necessity-based industries, ongoing economic conditions could still impact their performance and ability to meet lease obligations, affecting the stability of the DST’s income stream.
CID: 1139