ExchangeRight Closes $52.85M Essential Income 9 DST on Strong Demand
Event summary
- ExchangeRight fully subscribed its $52.85M Essential Income 9 DST offering, closing the deal on September 9, 2026.
- The DST portfolio consists of three net-leased properties totaling 205,857 square feet in South Carolina, Georgia, and Virginia.
- Properties are tenanted by Pepsi Bottling Ventures and Tractor Supply Company, offering a 5.35% current cash flow rate.
- Investors will have a tax-deferred exit via Section 721 exchange into Essential Income REIT after a targeted two-year hold period.
The big picture
This closing demonstrates continued investor appetite for tax-deferred real estate investments, particularly those backed by recession-resilient tenants. ExchangeRight's ability to fully subscribe this offering reflects its strong position in the net-leased real estate space, with $7.7B in AUM across 1,400+ properties. The strategic move to provide a clear path to its REIT highlights the company's focus on long-term investor value.
What we're watching
- Investor Demand
- Whether ExchangeRight can sustain this level of demand for future Essential Income DST offerings.
- Exit Strategy
- How smoothly the tax-deferred transition into Essential Income REIT will proceed for investors.
- Portfolio Performance
- The pace at which the underlying properties maintain their recession-resilient status.