ExchangeRight Closes $46M All-Cash DST Portfolio Focused on Recession-Resilient Retail

Event summary

  • ExchangeRight fully subscribed its $46.1M Net-Leased All-Cash 16 DST portfolio, targeting 1031 exchange investors.
  • The portfolio includes four net-leased properties totaling 151,226 square feet, tenanted by necessity-based retailers.
  • Initial weighted-average lease term is 18.2 years, with an annualized distribution rate of 5.08% covered by in-place lease revenue.
  • Exit strategy includes tax-deferred cash-out financing, 1031 exchange, or 721 exchange into Essential Income REIT options.
  • The offering is now closed and not accepting new investors.

The big picture

ExchangeRight's fully subscribed $46.1M DST portfolio reflects strong investor appetite for stable, recession-resilient real estate assets. The offering's focus on necessity-based retailers and long-term leases aligns with broader trends in commercial real estate, where investors seek capital preservation and steady income amid economic uncertainty. With over $7.2B in assets under management, ExchangeRight continues to position itself as a significant player in the net-leased real estate space, leveraging its vertically integrated platform to manage diversified portfolios across 47 states.

What we're watching

Exit Strategy Viability
Whether ExchangeRight can successfully execute its tax-deferred cash-out financing and 721 exchange options as planned.
Market Demand
The pace at which similar all-cash, net-leased real estate offerings will attract investors in the current economic climate.
Portfolio Performance
How the recession-resilient nature of the portfolio's tenants will impact long-term stability and returns.