ExchangeRight Essential Income 7 DST
Overview
ExchangeRight Essential Income 7 is a diversified portfolio of properties with net leases backed by historically recession-resilient tenants, with a 5.50% current cash flow featuring a 20-year master lease guarantee from the ExchangeRight Essential Income REIT and its Operating Partnership. This offering is intended to provide investors with current monthly income and accelerated access to the Essential Income REIT via a tax-deferred 721 exchange after a targeted two-year hold period.
The Essential Income 7 DST is structured to provide stable income and capital preservation through the Operating Partnership’s guaranty of the master lease base rent during the DST hold period. After approximately two years, the exit plan for DST investors is to complete a tax-deferred 721 exchange into the Essential Income REIT. The exit has been designed to provide investors pro rata access to the REIT’s monthly income, broader diversification, increased growth potential, enhanced liquidity, and estate planning advantages.
Key Investment Features
Structure
Tenancy in Common (TIC)
Investment Sponsor
ExchangeRight
Property Type(s)
NNN
Location(s)
5 States
Occupancy
100%
721 Exchange / UPREIT
Required
Minimum Investment
$100,000
Investment Strategy
Buy & Hold
Year 1 Yield
5.50%
In-Place Loan
No Loan; All Cash
Avg. Remaining Lease Term
20 Years
Cash Flow Forecast
Year 1
Year 2
Year 3
Year 4
5.50%
5.50%
Sold
Sold
Year 5
Year 6
Year 7
Year 8
Sold
Sold
Sold
Sold
Year 9
Year 10
Sold
Sold
Investment Highlights
Each site is positioned along a primary commercial corridor with strong visibility and convenient regional access.
The properties are modern or well-maintained, single-tenant buildings designed to meet national tenant prototype standards.
The portfolio is located in a mix of stable and steadily growing regional markets supported by diversified local economies.
Limited new retail construction in several submarkets supports strong occupancy and sustained performance for essential-goods and service-based tenants.
Advantages
ExchangeRight was formed in 2012, has $5.6+ Billion of assets under management, invested in 1,200+ properties across 47 states
All of ExchangeRight’s full-cycle offerings have met or exceeded projected returns.
All of ExchangeRight’s active offerings are meeting or exceeding investor cash flow distributions.
Weaknesses
Flat distributions.