ExchangeRight Essential Income 13 DST
Investment Description
ExchangeRight Essential Income 13 DST holds a single approximately 753,640-square-foot industrial building on roughly 71.74 acres at 9800 217th Street West, Lakeville, Minnesota. The building was constructed in 2021 and is 100% leased to Amazon.com Services LLC as an Amazon Distribution Center, guaranteed by Amazon.com, Inc., which carries a long-term S&P rating of AA. The lease runs from August 9, 2021 to August 31, 2036 on a double net (NN) basis, with 1.5% annual rent escalations, fair market rent resets at each option, and four five-year renewal options. Zoning is I-1 Light Industrial.
The Trust purchased the property for $94,800,000 from an unaffiliated third party and is capitalized entirely with $107,600,000 of owner equity; there is no Trust-level debt. The stated exit is a tax-deferred Section 721 exchange into the operating partnership of the ExchangeRight Essential Income REIT, which cannot occur before the second anniversary of the Offering Termination Date. A July 31, 2026 appraisal by Partners Valuation Advisory indicated an as-is value of $97,600,000, but that appraisal was prepared for an unaffiliated third party and expressly may not be relied upon by the Trust or the Owners.
Projected Cash Flow
Highlights
Jerry Baker's Notes
Before you read these notes
Jerry Baker's Notes are his opinion, shared to help frame a conversation. They are not investment advice, a recommendation, or an offer, and they are not a substitute for the offering documents. Review the Private Placement Memorandum for complete information, including risk factors, before making any decision.
I understand · Show the notesLoad is 11.01%, low for the table, and the tenant credit is about as strong as net lease offers: Amazon.com, Inc. at S&P AA on a 2021-built distribution center with ten years of remaining term and four five-year options behind it. All cash, no leverage.
Three features separate this from ExchangeRight's usual product. It is a single building with a single tenant. The marketing leads with the REIT's 436 properties across 38 states and 44 tenants, but that diversification belongs to the vehicle investors exchange into, not to what they own during the hold. It is a double net lease rather than the absolute NNN structure the sponsor's retail portfolios use, so the Trust retains landlord obligations. And year-one income is partly supported rather than earned: a $264,995 seller rent credit lifts contractual rent to $482,575.85 per month from closing through August 31, 2029.
On coverage, two years at 5.15% returns 10.30% against an 11.01% load, so the load is not recovered inside the disclosed window. This is the truncated-721 case, where the schedule stops at the anticipated roll-up by design, so it reads Common rather than Not Preferred. The material question is not the two years of cash flow but whether the exchange into the Essential Income REIT occurs on the terms, timing and valuation described. The appraisal offers no help there: the July 31, 2026 Partners Valuation Advisory report indicating $97,600,000 was prepared for an unaffiliated third party and expressly may not be relied upon by the Trust or the Owners.