ExchangeRight Essential Income 11 DST

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

Essential Income 11 is a credit-and-preservation play — a bond-proxy for AA-rated Amazon income wrapped in zero leverage and an accelerated REIT exit, not a yield or growth vehicle. Its defensive strengths are genuine: a brand-new 2024 Class A+ facility, an all-cash structure that removes refinancing, covenant, and rate risk, an appraisal above purchase price, and a twenty-year master-lease guarantee from a roughly $1.5 billion ExchangeRight REIT backstopping income through 2046. On relative value, the 5.15% average yield only meets the net-lease benchmark — market starting and peak income sit near 5.11% and 5.34% — and with distributions pinned flat, growth screens at the bottom of the category. The investor also pays richly for it: an 11.60% total load sits at the heavy end of the DST range, so a large slice of capital funds fees, not property, and the Year-1 payout runs right at NOI (a ~1.01 ratio) propped by a $306,303 seller rent credit expiring February 2030. The crux is what happens once that credit burns off: contractual Amazon rent alone falls below the master-lease obligation, so durable income and liquidity rest on the REIT guarantee and the mandatory 721 roll-up, not the standalone lease. Less obvious: you are not really buying an Amazon lease but ExchangeRight's balance sheet and its ability to execute the 721. The sponsor's 28 full-cycle deals (roughly 7.8% average annual return, a 1.41x equity multiple over ~5.4-year holds) support that bet, but a bet it remains: Amazon's month-65 termination option, NN (not NNN) cost exposure, single-tenant concentration until conversion, and the tertiary Myrtle Beach market all sit upstream of the guarantee. Net, this fits conservative 1031 investors who prize top-tier tenant credit, capital preservation, and a defined, faster-than-usual tax-deferred REIT path, and who accept flat income and a rich load as the price. Those seeking rent growth, standalone lease durability, a low entry cost, or continued 1031 optionality at exit — the mandatory 721 forecloses it — should pass.

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 Projected Distributions

Average Yield5.15%

Est. Tax-Adjusted Yield¹11.99%

Cap Rate Equivalent7.75%

Y15.15%

Y25.15%

Y35.15%

Y45.15%

Y55.15%

Y65.15%

Y75.15%

Y85.15%

Y95.15%

Y105.15%

Projected, not guaranteed. Distribution rates are the sponsor’s projections, are not a promise of performance, and can be reduced or suspended. ¹ Estimated Tax-Adjusted Yield reflects the projected impact of depreciation and amortization deductions at an assumed combined federal and state tax rate; individual tax outcomes vary — consult your CPA regarding your specific situation. Cap Rate Equivalent is a Baker 1031 Investments calculation intended to allow comparison with direct property ownership; it is not a sponsor-reported figure and does not represent a rate of return. See the private placement memorandum for the assumptions behind these figures.

ExchangeRight Essential Income 11 DST Financing

This is an all-cash offering — the property is owned free and clear, with no in-place financing. There is no lender, loan balance, or scheduled debt service at the trust level.

Benchmarks

Avg. Income

This deal5.15%

Market5.11%

Meets Average

Growth

This deal0.00%

Market7.52%

Peak

This deal5.15%

Market5.34%

Meets Average

Benchmarks are calculated by Baker 1031 Investments: each metric is compared against the average across current offerings of the same property type tracked by Baker 1031 as of the last-updated date shown; a figure within ±10% of that average reads “Meets Average.” Benchmark data is internal, unaudited, and subject to change. Review each offering’s PPM for complete information.

ExchangeRight Essential Income 11 DST Documents

Offering Documents Available By RequestRequest Documents

ExchangeRight Essential Income 11 DST — Complete Offering Data

Offering & Structure

Investment NameExchangeRight Essential Income 11 DST

SponsorExchangeRight

StructureDelaware Statutory Trust (DST)

Offering Type506(b)

StatusLimited Availability

Last Updated2026-07-24

Size & Availability

Total Offering$33,370,000

Equity$33,370,000

DebtAll-Cash

Available Equity$525,383 (1.6% 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

LenderNone (all-cash offering)

Interest RateN/A (no debt)

Loan TermN/A (no debt)

I/O PeriodN/A (no debt)

AmortizationN/A (no debt)

Y1 DSCRN/A - no debt service (all-cash)

Exit

Estimated Hold Period2 years (targeted 721)

721 Exchange ExitMandatory

Connected REITExchangeRight Essential Income REIT

Benchmarks (vs sector median)

Avg. Income5.15% vs 5.11% market — Meets Average

Growth0.00% vs 7.52% market

Peak5.15% vs 5.34% 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.