ExchangeRight Essential Income 9 is a debt-free, 100%-equity DST ($52.85M) owning a three-property, single-tenant net-leased portfolio (205,857 SF) anchored by a Pepsi Bottling Ventures distribution facility in Longs, SC, plus necessity-retail assets in Dalton, GA and Ruckersville, VA. The properties are covered by a 20-year master lease guaranteed by the Essential Income REIT and its operating partnership, supporting a 5.35% current cash flow paid monthly. The defining feature is a planned tax-deferred 721 exchange into the Essential Income REIT approximately two years after full subscription.
ExchangeRight Essential Income 9 DST is a debt-free, 100%-equity Delaware Statutory Trust ($52,850,000 across 100 interests at $528,500) sponsored by ExchangeRight Real Estate, LLC. 98M Year-1 NOI inclusive of a seller rent credit); a 21,909 SF necessity-retail asset in Dalton, Georgia (lease to September 2045, ~$483,000 NOI); and a 19,103 SF necessity-retail asset in Ruckersville, Virginia (lease to February 2046, ~$382,000 NOI).
35% current cash flow paid monthly. The defining feature is the exit: a planned tax-deferred 721 exchange into the Essential Income REIT (a diversified portfolio of 357 properties across 35 states leased to 40 recession-resilient, primarily investment-grade necessity-retail and healthcare tenants) approximately two years after full subscription, converting DST interests into REIT operating-partnership units.
The properties are held free and clear with no mortgage, eliminating refinancing, maturity, rate-cap, and lender-foreclosure risk and removing the equal-or-greater-debt replacement requirement for 1031 investors. The structural trade-off is the absence of positive leverage.
The offering is debt-free, eliminating leverage, refinancing, maturity, and lender-covenant risk entirely; the 5.35% cash flow is unlevered and supported by a 20-year master lease guaranteed by the ExchangeRight Essential Income REIT and its Operating Partnership, so during the targeted two-year hold the income depends on the REIT guaranty rather than on property-level leverage.
Despite the diversified-portfolio framing, the DST itself is concentrated: it holds only three properties, and the single Pepsi Bottling Ventures facility in Longs, South Carolina generates roughly 70% of Year-1 NOI. The marketed diversification (357 properties, 40 tenants, 35 states) is the profile of the Essential Income REIT and materializes only if and when the 721 exchange is completed, not during the DST hold.
The anchor lease is to PBV Conway-Myrtle Beach, LLC, a Pepsi Bottling Ventures entity (a joint venture of Suntory and investment-grade PepsiCo), running through February 2039, with the two smaller necessity-retail assets carrying even longer terms (to 2045 and 2046). The Longs Year-1 NOI is inclusive of a seller rent credit, a temporary support to the in-place economics, and the bottling facility is a large special-purpose building with limited alternative use at eventual expiry.
The entire investment thesis is built around an accelerated, tax-deferred 721 exchange into the Essential Income REIT roughly two years out, giving investors a defined path from a concentrated three-asset DST into a large diversified necessity-retail and healthcare REIT while continuing tax deferral. The trade-off is that the exit is a plan rather than a guarantee, is effected at the REIT and Sponsor discretion, and converts investors into REIT unitholders subject to the REIT portfolio, valuation, and redemption terms.
ExchangeRight is an experienced, vertically integrated sponsor with more than 100 consecutive DST offerings, approximately $6.2 billion invested, a stated 100% historical rent-collection record, and 8,600-plus investors; of its 33 full-cycle offerings to date, each is reported to have achieved 100% of projected investor distributions without loss of investor capital. This track record underpins confidence in the master-lease guaranty and the 721-exit mechanics that define this vehicle.
The structure is conservative on its face: debt-free with no leverage or refinancing exposure, a 100%-occupied single-tenant net-lease portfolio, and a 5.35% current cash flow paid monthly and backed by a 20-year master lease guaranteed by the ExchangeRight Essential Income REIT and its Operating Partnership. The anchor tenant is an investment-grade-affiliated Pepsi Bottling Ventures entity on a lease through 2039, supplemented by two necessity-retail assets with long terms to 2045 and 2046. The offering provides a clearly defined, tax-deferred 721 exit into a large diversified REIT (357 properties, 35 states, 40 primarily investment-grade necessity tenants) approximately two years out, and the sponsor brings a deep track record of 100-plus DST offerings, $6.2 billion invested, a 100% historical rent-collection record, and 33 full-cycle offerings reported at 100% of projected distributions.
The diversified characterization applies to the destination REIT, not the DST, which is a concentrated three-property pool in which a single Pepsi Bottling Ventures facility produces roughly 70% of Year-1 NOI, so asset and tenant concentration is high during the hold and the Longs Year-1 NOI is propped by a seller rent credit. The investment value realization depends almost entirely on the 721 exchange into the Essential Income REIT occurring at an acceptable exchange value roughly two years out, an outcome that is planned but not guaranteed and is effected at the REIT and Sponsor discretion; investors who exchange become REIT operating-partnership unitholders exposed to the REIT leverage, portfolio valuation, distribution policy, and redemption terms. During the hold, the 5.35% income relies on the REIT and Operating Partnership ability to honor the master-lease guaranty rather than purely on the three tenants rent. The capital structure also embeds a meaningful spread between equity raised and underlying real estate value, with roughly 8% in fees and selling costs plus an additional ~3.4% of non-accountable acquisition-related costs (including ~$1.13M of equity-financing and bridge costs) layered into the acquisition cost, which bears on the eventual 721 exchange ratio. Finally, the large Pepsi bottling/distribution building is a special-purpose asset with limited alternative use should the planned exit not occur and the asset need to be re-tenanted at lease expiry.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
This is best understood not as a property investment but as a short-duration, debt-free, master-lease-guaranteed income coupon (5.35%) that is engineered to convert into Essential Income REIT units via a tax-deferred 721 exchange after about two years. The risk-adjusted profile therefore turns on two things: the durability of the REIT master-lease guaranty during the hold, and the execution and valuation of the 721 exchange at exit; the three underlying properties matter mainly as collateral and as the basis for the exchange ratio. The debt-free structure genuinely removes leverage and refinancing risk and makes the near-term income durable, but the return is modest and the concentrated, special-purpose nature of the DST own assets sits uneasily with the diversification narrative, which only becomes real post-exchange. For an investor whose objective is current tax-advantaged income with a defined pathway into a larger diversified necessity-retail and healthcare REIT, the vehicle is internally coherent; the items least reflected in the 5.35% headline are the 721 execution-and-valuation dependency, the DST-level asset and tenant concentration, the reliance on the REIT guaranty for the in-place income, and the cost spread between equity raised and real estate value.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
| Metric | This Offering | Market Avg. | Assessment |
|---|---|---|---|
| Avg. Income | 5.35% | 5.21% | Meets Average |
| Peak Income | 5.35% | 5.47% | Meets Average |
ExchangeRight
ExchangeRight has scaled into one of the defining net-lease DST franchises, ending 2025 as the fifth-largest sponsor in the 1031 DST market with roughly $7.0 billion in AUM across more than 1,400 properties and 27 million square feet in 48 states. Founded in 2012 and vertically integrated out of Pasadena, the firm anchors its portfolios in investment-grade-tenanted necessity retail and healthcare—pharmacies, grocery, dollar stores—whose recession-resistant cash flows underpin its consistency. The track record is the headline: 34 full-cycle offerings averaging an 8.60% annual return with no loss of investor capital, all 126 offerings meeting or exceeding distribution projections, and an Essential Income REIT that supplies a 721 UPREIT exit. That combination of scale, tenant credit discipline and full-cycle performance makes it a benchmark for the category.
Learn More About ExchangeRight →This offering is closed and its offering materials are no longer available. To review current, live investments, sign in or request access.
Securities offered through Aurora Securities, Inc. (CRD #46147 / SEC #8-51322), member FINRA / SIPC; Baker 1031 Investments, LLC is independent of Aurora Securities, Inc. and is not a registered broker-dealer or investment adviser. This is not an offer to sell or a solicitation of an offer to buy any security; any offer is made solely by the confidential private placement memorandum (PPM), which qualifies all information herein in its entirety. Delaware Statutory Trust interests are speculative, illiquid securities offered under Rule 506(c) of Regulation D and sold only to investors whose accredited-investor status has been verified; offering documents and subscription materials are provided only after that verification. They involve substantial risk, including possible loss of the entire investment.
Distributions, yields, the cap-rate equivalent, DSCR, occupancy, and benchmark figures are sponsor estimates or projections, are not guaranteed, and may differ materially from actual results. Any tax-adjusted yield assumes a 40% effective rate for non-1031 cash investors and is not tax advice. No tax, legal, or investment advice is provided — consult your own CPA and attorney. Past performance does not guarantee future results.