ExchangeRight Net-Leased All-Cash 20 DST Overview
ExchangeRight Net-Leased All-Cash 20 DST is a debt-free, all-cash Delaware Statutory Trust offering sponsored by ExchangeRight Real Estate, LLC. The Trust, formed on January 5, 2026, owns a portfolio of six single-tenant, 100% occupied, net-leased retail properties acquired for a purchase price of $15,016,390. The properties are located at 2629 East Renfro Street, Burleson, Texas; 811 Bethel Church Road, Sumter, South Carolina; 3651 George Dieter Drive, El Paso, Texas; 1000 East 6th Avenue, Belton, Texas; 2176 Highway 52 East, Pelham, Alabama; and 8318 FM 78, Converse, Texas. Each property is leased to a national, necessity-based retailer; the tenant roster comprises two Dollar General stores plus single locations operating as Dollar Tree, Tractor Supply, O'Reilly Auto Parts, and NAPA Auto Parts, the majority of which carry investment-grade corporate credit ratings. The portfolio carries a weighted-average remaining lease term of approximately 9.9 years and is structured under a 20-year master lease whose rent obligations are guaranteed by the ExchangeRight Essential Income Operating Partnership, with year-one master lease rent of $970,217 scaling to as much as $1,186,055 over the term.
The Offering raises $17,800,000 of equity through 100 Class 1 beneficial interests priced at $178,000 each (a 0.56180% interest per unit), with a $100,000 minimum investment, and is conducted under Rule 506(b) of Regulation D for accredited investors only. Because the Trust uses no mortgage debt, investors bear no lender or property-level refinancing risk, and the offering targets a current cash flow of 5.20% paid monthly. The DST structure allows 1031 exchangers to defer capital gains while owning a passive, professionally managed interest in institutional net-lease real estate, and the sponsor's stated exit strategy is to aggregate the portfolio into its REIT platform through a Section 721 exchange. The offering is designed for accredited investors, particularly 1031 exchangers, seeking passive income, capital preservation, and continued tax deferral without direct management responsibility.
Highlights
The portfolio is distributed across three Sun Belt states, Texas, South Carolina, and Alabama, with four of the six properties located in growing Texas markets including Burleson in the Fort Worth metro, El Paso, Belton, and Converse in the San Antonio metro. ExchangeRight's site-selection strategy targets locations occupied by national tenants successfully operating in necessity-based industries, favoring established retail corridors and trade areas that support essential-goods retail regardless of the broader economic cycle. Each site was underwritten for its real estate characteristics and the tenant's demonstrated commitment to the location, and all six properties were 100% occupied at acquisition. The emphasis on Sun Belt population-growth markets and necessity-based retail is intended to support durable tenant demand, rent collection, and re-leasing prospects over the hold period, while the geographic spread across three states provides a measure of regional diversification within a compact portfolio.
All six properties are single-tenant, net-leased buildings that were 100% occupied at closing and leased to established national retail operators on triple-net terms, meaning the tenants, through the master lessee, bear responsibility for property taxes, insurance, and maintenance. The rent roll is anchored by recession-resilient, necessity-based brands: Dollar General (S&P investment-grade BBB), Dollar Tree (BBB), Tractor Supply (BBB), O'Reilly Auto Parts, and NAPA Auto Parts, tenants whose parent companies report multi-billion-dollar annual revenues and thousands of operating stores nationwide. The portfolio's weighted-average remaining lease term of roughly 9.9 years provides visibility into contractual income, and individual leases carry staggered expirations extending into the 2030s and 2040s, reducing the risk of simultaneous rollover. The single-tenant net-lease format minimizes landlord operating obligations while delivering predictable, contractually defined cash flow from creditworthy operators in essential retail categories.
A defining feature of this offering is that it is entirely debt-free: the Trust acquired the portfolio on an all-cash basis with $17,800,000 of investor equity and carries no mortgage, giving it a 0% loan-to-value ratio. This eliminates lender foreclosure risk, refinancing risk, balloon-maturity risk, and the cash-flow drag of debt service that accompanies leveraged DSTs, and it insulates the portfolio from the interest-rate volatility that can impair leveraged net-lease vehicles. Of the $17,800,000 raised, roughly 89.70% is applied to the property acquisition, with the balance funding an acquisition fee, selling commissions and offering expenses totaling about 7.51%, and an operating and asset-management reserve of $262,787. Contractual master-lease rent runs from $970,217 in year one to as much as $1,186,055 over the term. For conservative exchangers, the unleveraged structure offers a lower-volatility income profile at the cost of the return amplification that leverage can provide.
ExchangeRight Real Estate, LLC is a vertically integrated net-lease sponsor whose platform spans underwriting and acquisitions, financing and structuring, asset and property management, leasing and tenant retention, and dispositions. As of April 30, 2026, ExchangeRight and its affiliates reported more than $7.4 billion of assets under management across 1,400-plus properties diversified over 47 states, 97 tenants, and 18 primarily necessity-based retail and healthcare industries, with more than 9,000 investments entrusted to the firm. The sponsor states it has returned over $2.5 billion of distributions, capital, and gains to investors inception-to-date and reports that 100% of its 34 full-cycle offerings have met or exceeded their cash-flow projections, delivering an average annual total return of 8.60%. The Trust is managed by ExchangeRight Asset Management, LLC, a sponsor affiliate formed in 2012, while an unaffiliated Delaware trustee, Gregory Harrison of Stewart Management Company, serves as trustee and independent director.
The offering is structured as a Delaware Statutory Trust so that, under Revenue Ruling 2004-86 and the opinion of tax counsel, the beneficial interests are treated as direct interests in real estate that qualify as replacement property for a Section 1031 like-kind exchange, allowing investors to defer capital gains and depreciation recapture from a relinquished property. Monthly distributions begin at a targeted 5.20% and are projected to step up over the hold. The sponsor's exit strategy centers on aggregating the DST into its REIT platform, offering owners several potential outcomes: (1) a subsequent Section 1031 exchange, (2) a tax-deferred cash-out financing targeting roughly 20% of investment value with the remainder rolled under Section 721, (3) a Section 721 exchange of interests into the REIT's operating partnership for continued deferral, (4) a fully taxable cash-out, or (5) a combination of these. A Section 721 roll-up preserves deferral but ends future 1031 eligibility for that capital, and all exit options depend on the REIT's capital availability and are not guaranteed.
Analysis of ExchangeRight Net-Leased All-Cash 20 DST
Insights
For a 1031 exchanger, ExchangeRight Net-Leased All-Cash 20 DST occupies the conservative end of the DST spectrum. The all-cash, 0% LTV structure is the central analytical fact: it removes the leverage that both amplifies returns and creates the refinancing and balloon-maturity failures that have troubled other net-lease DSTs, so the realistic expectation is a bond-like, income-driven profile anchored by the 5.20% initial cash flow rather than equity-style appreciation. An exchanger should weigh whether forgoing leverage-driven upside is an acceptable trade for materially lower downside and volatility; for many replacement-property buyers focused on preserving basis and generating stable monthly income, it is. The key variables to watch are occupancy versus the 100%-occupied, contractually modeled assumptions; the durability of the tenants (Dollar General, Dollar Tree, Tractor Supply, O'Reilly, NAPA), whose investment-grade ratings and necessity-based formats support the recession-resilient thesis but are not immune to dollar-store margin pressure or shifting retail economics; and the exit cap rate at disposition, since an all-cash portfolio's residual value is highly sensitive to prevailing net-lease cap rates and interest rates at the time of sale. The load is a second focal point: with roughly 7.51% in commissions and offering costs and only about 89.70% of equity deployed into real estate, the portfolio must generate income and appreciation sufficient to earn back that spread before an investor is whole on a mark-to-market basis, a common DST dynamic, but one that argues for a longer hold and for weighing this against lower-load or larger, more diversified alternatives. Diversification is comparatively thin: six properties concentrated heavily in Texas is far narrower than ExchangeRight's larger Essential Income portfolios, so idiosyncratic tenant or regional-disaster events carry more weight, compounded by the decision not to insure all properties against flood and earthquake. The master-lease structure is double-edged; it smooths income and provides an affiliate-backed guaranty from the Essential Income Operating Partnership, but that guaranty is only as strong as the guarantor, and the PPM candidly warns the thinly capitalized master lessee would likely default if underlying tenants stop paying. The Section 721 aggregation exit is the strategic upside, a path to eventual liquidity and diversification into a $7.4-billion-plus REIT platform, but it is discretionary, depends on the REIT's capital availability, and, once elected, permanently ends 1031 eligibility for that capital, a meaningful estate- and tax-planning consideration. Net, this is a fit for accredited exchangers who prioritize capital preservation, passive management, and continued deferral, who are comfortable with illiquidity and full reliance on a conflicted but experienced sponsor, and who value the sponsor's stated 100% cash-flow track record across 34 full-cycle offerings, while remaining clear-eyed that distributions, the exit, and the underlying tax treatment are all targets, not guarantees.
Advantages
The offering's most distinctive advantage is its debt-free, all-cash capitalization: with no mortgage and a 0% loan-to-value ratio, investors are insulated from refinancing risk, balloon maturities, lender foreclosure, and the cash-flow drag of debt service, risks that have impaired many leveraged net-lease DSTs during periods of rising interest rates. The portfolio is 100% occupied by national, necessity-based retailers, Dollar General, Dollar Tree, Tractor Supply, O'Reilly Auto Parts, and NAPA Auto Parts, most carrying S&P investment-grade ratings, on triple-net leases that push property taxes, insurance, and maintenance to the tenant level. Income visibility is reinforced by a weighted-average remaining lease term near 9.9 years and a 20-year master lease guaranteed by the ExchangeRight Essential Income Operating Partnership, with contractual master-lease rent rising from $970,217 toward $1,186,055 over the term and targeted monthly distributions starting at 5.20% and projected to increase. Investors gain fully passive ownership of institutional-quality real estate that qualifies for 1031 exchange treatment and continued tax deferral, backed by a vertically integrated sponsor reporting more than $7.4 billion in assets under management, over $2.5 billion returned to investors, and a stated 100% record of full-cycle offerings meeting or exceeding cash-flow projections. The Section 721 exit pathway offers a potential route to future liquidity and diversification into a larger REIT portfolio while preserving deferral. For accredited 1031 exchangers prioritizing capital preservation and predictable income over leverage-driven upside, the structure is well aligned.
Concerns
An investment in the Interests is highly speculative, illiquid, and carries the potential for complete loss of principal. The Interests are nontransferable, there is no public market, and investors must be prepared to hold for an indefinite period. As a Delaware Statutory Trust, the vehicle is subject to the customary DST restrictions: the Trust cannot enter new financing, renegotiate the master lease or sign new leases (except upon the master lessee's bankruptcy or insolvency), reinvest disposition proceeds, or accept additional capital, leaving owners with no ability to actively manage the assets and no voting control over day-to-day decisions, which rest entirely with the sponsor-affiliated Manager. The portfolio is small and concentrated: only six single-tenant properties, with four of the six located in Texas, a state the PPM notes is particularly susceptible to windstorms, floods, and tornadoes; the Trust does not intend to procure flood or earthquake insurance for all properties, and uninsured catastrophic losses could exceed coverage. Single-tenant assets carry binary vacancy risk, since the loss of any one tenant materially affects that property's income. The master lessee is a newly formed sponsor affiliate with limited assets, and the PPM acknowledges that if tenants fail to pay rent it is even likely the master lessee will default on the master lease to the Trust; the Operating Partnership guaranty is itself an affiliate obligation. Pervasive conflicts of interest exist because sponsor affiliates serve as Manager, Master Lessee, Property Manager, and broker-dealer and will earn substantial fees, and offering counsel does not represent the investors. The load is meaningful, roughly 7.51% in selling commissions and offering expenses, with only about 89.70% of equity applied to property acquisition, creating an up-front value gap. Distributions are not guaranteed, depend on actual operations, and are supported in part by reserves. Finally, the targeted 721 or 1031 exit is not guaranteed and depends on the ExchangeRight REIT's capital availability, and an adverse tax recharacterization could jeopardize 1031 treatment.
ExchangeRight Net-Leased All-Cash 20 DST — Complete Offering Data
Offering & Structure
Investment NameExchangeRight Net-Leased All-Cash 20 DST
SponsorExchangeRight
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusClosed
Last Updated2026-06-20
Size & Availability
Total Offering$17,800,000
Equity$17,800,000
DebtAll-Cash
Available Equity$0 (0% of equity)
Minimum Investment$100,000
Total Load8.83%
Initial Reserves1.48%
Property
Property TypeNet Lease
StrategyCore
LocationAL, SC, TX
Market TierTier 3
Income & Projections
Average Yield5.40%
Projected Yields (Y1–Y10)Y1 5.20% · Y2 5.20% · Y3 5.22% · Y4 5.29% · Y5 5.43% · Y6 5.46% · Y7 5.46% · Y8 5.48% · Y9 5.54% · Y10 5.70%
Tax-Adjusted Yield12.04%
Cap Rate Equivalent7.80%
Year 1 NOI$990,217
Y1 Payout Ratio1.07
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period10 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income5.40% vs 5.08% market — Meets Average
Growth9.62% vs 7.44% market — Above Average
Peak5.70% 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.
