ExchangeRight Essential Income 11 DST Overview
ExchangeRight Essential Income 11 DST is a $33.37 million all-cash (debt-free) Delaware Statutory Trust offering interests in a single, newly built (2024) Class A+ industrial distribution facility of approximately 165,454 square feet in North Myrtle Beach, South Carolina, 100% leased to Amazon.com Services LLC and guaranteed by Amazon.com, Inc. (rated AA by S&P). The lease carries roughly 7.75 years of remaining term with four five-year fair-market-value renewal options; it is structured as a double-net (NN) lease, and the offering is further supported by a twenty-year master-lease guarantee from the ExchangeRight Essential Income REIT operating partnership providing stepped rent through 2046. Because the offering is all-cash with no mortgage, there is no refinancing or lender-covenant risk. Interests are intended to qualify as Section 1031 replacement property, and the deal is a pre-REIT structure with a targeted mandatory Section 721 exchange into the ExchangeRight Essential Income REIT (approximately $1.5 billion-plus in net asset value across 397 properties, 37 states, and 40 tenants) as early as the two-year anniversary. Distributions are projected at a flat 5.15% annualized rate. The appraised value of $30.1 million exceeds the $29.25 million purchase price, and first-year net operating income is approximately $1.74 million.
Highlights
Investment-grade Amazon tenancy. The facility is 100% leased to Amazon.com Services LLC, guaranteed by Amazon.com, Inc., which carries an AA rating from S&P - among the highest tenant credit profiles available in the net-lease market. Amazon has approximately 7.75 years of remaining term plus four five-year fair-market-value renewal options, and reportedly invested more than $15 million of its own capital to upfit roughly 25,000 square feet for grocery operations, signaling commitment to the location as a functional last-mile and distribution node.
All-cash, debt-free structure. The offering carries no mortgage (0.00% loan-to-value), eliminating refinancing risk, lender covenants, and interest-rate exposure across the hold. Distributable cash flow is not encumbered by debt service, and the absence of leverage removes the balloon-maturity risk that accompanies most financed DSTs. For conservative 1031 investors, a debt-free single-tenant asset leased to an AA-rated guarantor offers a comparatively low-volatility, bond-like income profile.
Twenty-year master-lease guarantee and REIT backing. Beyond Amazon's direct lease, the ExchangeRight Essential Income REIT operating partnership provides a twenty-year master-lease guarantee with stepped rent running through 2046, backstopping income even after the initial Amazon term. ExchangeRight reports approximately $7.1 billion in assets under management (as of January 31, 2026), investment in 1,400-plus properties across 48 states since its 2012 founding, and states that all of its offerings met or exceeded projections in 2025.
Accelerated Section 721 REIT exit. Unlike a typical ten-year DST hold, this pre-REIT structure targets a mandatory Section 721 exchange into the ExchangeRight Essential Income REIT (roughly $1.5 billion-plus net asset value, 397 properties, 37 states, 40 tenants) as early as the two-year anniversary, converting Owners' interests into REIT operating-partnership units and providing faster diversification than a single-asset hold. The timing and terms of any 721 transaction are not guaranteed and are controlled by the Sponsor.
Brand-new, best-in-class 2024 construction. The distribution facility was completed in 2024 with institutional specifications - 32-foot clear heights, ESFR sprinklers, full HVAC, tilt-wall construction, 4,000-amp power, a 60-mil TPO roof with a twenty-year warranty, and 235 parking spaces including trailer stalls - on a roughly 19.7-acre site. In-place rent is reported at approximately 13% below current market, embedding potential mark-to-market upside at renewal in a land-constrained coastal submarket.
Analysis of ExchangeRight Essential Income 11 DST
Insights
Strip the Amazon logo and Essential Income 11 is really a wager on ExchangeRight's balance sheet — a capital-preservation sleeve built to behave like a short-dated corporate bond, not the industrial-growth story the tenant name implies. The defensive bones are genuine: a new 2024 Class A+ box, zero leverage (0% LTV) that erases refinancing and rate risk, an appraisal above purchase, and a twenty-year ExchangeRight master lease running through 2046. On price it is unremarkable: the 5.15% distribution is flat over the hold and only Meets Average against the net-lease benchmark on both starting (~5.11%) and peak (~5.34%) income — a market coupon for below-market credit risk. The 11.60% load is heavy, well past the 9% line, so much of your equity funds fees, not property. The Year-1 payout clears NOI by only a razor 1.01x, and even that is manufactured by a $306,303 seller rent credit expiring February 2030. That is the crux: once the credit burns off, Amazon's own contractual rent (~$1.58M) drops below the ~$1.74M obligation, so durable income shifts from the tenant to ExchangeRight's guarantee and the mandatory Section 721 roll-up into its ~$1.5B REIT. The buried truth: you are underwriting the sponsor's ability to execute that conversion — sponsor-controlled, not guaranteed — more than Amazon itself. Its 28 full-cycle deals (~7.8% average return, 1.41x equity multiple, ~5.4-yr holds) make it defensible, but Amazon's month-65 termination option, NN (not NNN) cost exposure, single-tenant concentration until conversion, and a tertiary Myrtle Beach market all sit ahead of that guarantee. Own it if you are a conservative 1031 investor who prizes AA credit, capital preservation, and a defined, faster-than-usual REIT exit and will accept flat income and a rich load; pass if you want rent growth, a cheap entry, or continued 1031 optionality, which the mandatory 721 forecloses.
Advantages
The offering delivers one of the strongest tenant-credit profiles in the DST market - an AA-rated Amazon.com, Inc. guarantee on a brand-new 2024 Class A+ distribution facility - inside an all-cash, debt-free structure that removes refinancing, covenant, and interest-rate risk entirely. Income is further reinforced by a twenty-year master-lease guarantee from the ExchangeRight Essential Income REIT operating partnership running through 2046, so cash flow is backstopped even beyond Amazon's roughly 7.75-year remaining term and four renewal options. The appraised value ($30.1 million) exceeds the purchase price ($29.25 million), a positive basis signal, and the pre-REIT structure targets an accelerated Section 721 exchange into a roughly $1.5 billion, 397-property REIT as early as year two - offering faster diversification than a conventional ten-year single-asset DST. ExchangeRight brings roughly $7.1 billion in AUM and a stated record of all offerings meeting or exceeding projections in 2025. For 1031 investors prioritizing credit quality, capital preservation, and a defined tax-deferred REIT path, the combination of an AA guarantor and zero leverage is a compelling, defensive profile.
Concerns
This is a single-tenant, single-asset offering with no diversification of any kind until a 721 exchange executes - which cannot occur before the two-year anniversary and is not guaranteed as to timing or terms. The lease is double-net (NN), not full triple-net, so the Trust bears responsibility for roof, foundation, exterior walls, doors and windows, elevators, exterior painting, and casualty or condemnation restoration. Critically, the first-year 5.15% distribution depends on a $306,303 seller rent credit (about $14,332 per month) that runs only through February 28, 2030; after it is exhausted, contractual rent reverts to approximately $1.58 million per year, which is below the roughly $1.74 million master-lease obligation, so income beyond that date leans on the REIT master-lease guarantee rather than direct tenant rent. Amazon also holds a one-time early-termination option at the end of month 65 (with twelve months' notice and a $2.35 million termination fee). Only two years of cash-flow projections are provided, distributions are flat with no growth, the mandatory 721 exchange eliminates future 1031 optionality at exit, and the Myrtle Beach MSA is a smaller, tertiary market with more seasonal and discretionary economic exposure than typical primary industrial hubs. As with all DSTs, Owners have no operational control and bear standard illiquidity and load costs.
ExchangeRight Essential Income 11 DST — Complete Offering Data
Offering & Structure
Investment NameExchangeRight Essential Income 11 DST
SponsorExchangeRight
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusClosed
Last Updated2026-07-31
Size & Availability
Total Offering$33,370,000
Equity$33,370,000
DebtAll-Cash
Available Equity$0 (0% of equity)
Minimum Investment$100,000
Total Load11.60%
Initial Reserves0.75%
Property
Property TypeNet Lease
StrategyCore
LocationSC
Market TierTier 3
Income & Projections
Average Yield5.15%
Projected Yields (Y1–Y10)Y1 5.15% · Y2 5.15% · Y3 5.15% · Y4 5.15% · Y5 5.15% · Y6 5.15% · Y7 5.15% · Y8 5.15% · Y9 5.15% · Y10 5.15%
Tax-Adjusted Yield11.99%
Cap Rate Equivalent7.75%
Year 1 NOI$1,743,916
Y1 Payout Ratio1.01
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period2 years (targeted 721)
721 Exchange ExitMandatory
Connected REITExchangeRight Essential Income REIT
Benchmarks (vs sector median)
Avg. Income5.15% vs 5.08% market — Meets Average
Growth0.00% vs 7.44% market
Peak5.15% vs 5.31% market — Meets Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
