ExchangeRight closes $52.85M Essential Income 9 DST in rapid subscription
What's the deal? ExchangeRightDealroom has a profile for this one. Try Dealroom → has fully subscribed its Essential Income 9 DST, a $52.85 million offering backed by three net-leased properties. The Delaware statutory trust series is designed to move investors into the company's Essential Income REIT via a tax-deferred Section 721 exchange. The offering is now closed to new investors.
The details: The unleveraged DST holds three properties totaling 205,857 square feet across South Carolina, Georgia, and Virginia, tenanted by Pepsi Bottling VenturesDealroom has a profile for this one. Try Dealroom → and Tractor Supply CompanyDealroom has a profile for this one. Try Dealroom →. It offers a 5.35% current cash flow rate and carries a 20-year master lease guarantee from the REIT and its operating partnership.
What's the endgame? After a targeted two-year hold, investors are positioned to exchange into the REIT for pro rata income, broader diversification, and estate-planning benefits. ExchangeRight cautioned there is no guarantee the DST will achieve that exit or its investment objectives.
Managing partner Joshua Ungerecht said the "rapid subscription reflects the strong investor demand we are seeing for the accelerated, tax-deferred pathway the Essential Income DST series provides." He added the offering is structured "to protect investor capital and provide stable income throughout its targeted two-year hold period."
Why now? The closing extends a series ExchangeRight introduced in 2025 with Essential Income 1 DST, a $25.1 million offering built on the same structure. Two closings came earlier this year: Essential Income 7 DST at $38.95 million over the summer, and Essential Income 8 DST at $15.38 million less than a month later, both at a 5.5% cash flow rate.
Essential Income REIT held 436 properties across 38 states as of June 30, up from 397 in 37 states at the end of the first quarter. Its net asset value rose 13% to $905.7 million in the second quarter, driven in part by a refinanced Wells FargoDealroom has a profile for this one. Try Dealroom → credit facility.
The signal: ExchangeRight's platform now spans more than $7.7 billion in assets under management across over 1,400 properties and 30 million square feet in 47 states, as of July 31. The steady cadence of DST closings points to sustained demand for tax-deferred pathways into net-leased, necessity-based real estate.
Read more: altswire.com
Image credit: Generated with Gemini
