ExchangeRight Net-Leased All-Cash 20 DST

Overview

A debt-free portfolio of six single-tenant, necessity-based net-leased retail properties (9.9-year WALT) acquired in early 2026 and held free and clear, sponsored by ExchangeRight Real Estate, LLC. The portfolio comprises two Dollar General stores (S&P BBB), a Dollar Tree (Dollar Tree, Inc.; S&P BBB; El Paso TX, to 2036), an O'Reilly Auto Parts (S&P BBB-; Belton TX, to 2033), a Napa Auto Parts (Genuine Parts Co.; investment grade), and a Tractor Supply (Tractor Supply Co.; S&P BBB), located across Texas (Burleson, El Paso, Belton, Converse), South Carolina (Sumter), and Alabama (Pelham). The properties are leased to an affiliated Master Lessee under a triple-net (NNN) master lease (Annual Base Rent $970,217-$1,186,055), with income diversified so the largest tenant is only ~28% of NOI. Going-in cash flow is 5.20%, escalating to 5.70% by year 10 (~5.40% average) on contractual rent. The all-equity structure removes refinancing and maturity risk. The exit is ExchangeRight's REIT aggregation strategy: the Essential Income REIT is targeted to acquire the DST interests within ~10 years via an optional Section 721 exchange, with cash-out and combination elections available. The $17,800,000 offering is 100 Class 1 interests at $178,000 ($100,000 minimum equity).

Investment highlights

• The portfolio is held free and clear with no mortgage and is leased entirely to investment-grade-rated operators (Dollar General BBB, Dollar Tree BBB, O'Reilly BBB-, Tractor Supply BBB, Napa/Genuine Parts investment grade) in necessity-based discount-retail and auto-parts categories. The combination supports income durability through cycles and removes refinancing, maturity, and foreclosure risk and the equal-or-greater-debt 1031 requirement.
• Income is diversified across six assets and five tenant brands with no dominant tenant: the largest single tenant is only ~28% of NOI (~28/26/20/14/12% split). This is a materially more diversified cash-flow base than a single-anchor net-lease deal and a notable contrast to the sponsor's smaller All-Cash 19 portfolio, where one tenant carried ~58% of NOI.
• The affiliated Master Lessee bears all operating expenses, taxes, insurance, and non-structural capital improvements under a triple-net (NNN) master lease (Annual Base Rent $970,217-$1,186,055), insulating distributable cash from operating inflation, with a ~1.48% reserve funded for capital items. This is a cleaner structure than a double-net lease that would leave the trust with structural responsibility.
• A 9.9-year weighted-average lease term with staggered expirations (e.g., O'Reilly 2033, Dollar Tree 2036) underpins durable contractual income across the targeted hold. Income growth is modest and contractual, lifting cash-on-cash from 5.20% to 5.70% over ten years rather than through operational upside.
• Total upfront load is low at ~8.83% of equity (7.51% selling/offering plus a 1.07% acquisition fee and a 0.25% reallowance) - among the lowest on the ledger - and the offering feeds ExchangeRight's Essential Income REIT, which targets acquiring the DST interests within ~10 years via an optional Section 721 exchange, cash-out, or combination.

Sponsor

This offering is sponsored by ExchangeRight. Baker 1031 Investments is independent of the sponsor and provides advisory and brokerage services to accredited investors.