Overview
A debt-free portfolio of six single-tenant, necessity-based net-leased retail properties (9.9-year WALT) acquired in early 2026 and held free and clear, sponsored by ExchangeRight Real Estate, LLC. The portfolio comprises two Dollar General stores (S&P BBB), a Dollar Tree (Dollar Tree, Inc.; S&P BBB; El Paso TX, to 2036), an O'Reilly Auto Parts (S&P BBB-; Belton TX, to 2033), a Napa Auto Parts (Genuine Parts Co.; investment grade), and a Tractor Supply (Tractor Supply Co.; S&P BBB), located across Texas (Burleson, El Paso, Belton, Converse), South Carolina (Sumter), and Alabama (Pelham). The properties are leased to an affiliated Master Lessee under a triple-net (NNN) master lease (Annual Base Rent $970,217-$1,186,055), with income diversified so the largest tenant is only ~28% of NOI. Going-in cash flow is 5.20%, escalating to 5.70% by year 10 (~5.40% average) on contractual rent. The all-equity structure removes refinancing and maturity risk. The exit is ExchangeRight's REIT aggregation strategy: the Essential Income REIT is targeted to acquire the DST interests within ~10 years via an optional Section 721 exchange, with cash-out and combination elections available. The $17,800,000 offering is 100 Class 1 interests at $178,000 ($100,000 minimum equity).
Highlights
The portfolio is held free and clear with no mortgage and is leased entirely to investment-grade-rated operators (Dollar General BBB, Dollar Tree BBB, O'Reilly BBB-, Tractor Supply BBB, Napa/Genuine Parts investment grade) in necessity-based discount-retail and auto-parts categories. The combination supports income durability through cycles and removes refinancing, maturity, and foreclosure risk and the equal-or-greater-debt 1031 requirement.
Income is diversified across six assets and five tenant brands with no dominant tenant: the largest single tenant is only ~28% of NOI (~28/26/20/14/12% split). This is a materially more diversified cash-flow base than a single-anchor net-lease deal and a notable contrast to the sponsor's smaller All-Cash 19 portfolio, where one tenant carried ~58% of NOI.
The affiliated Master Lessee bears all operating expenses, taxes, insurance, and non-structural capital improvements under a triple-net (NNN) master lease (Annual Base Rent $970,217-$1,186,055), insulating distributable cash from operating inflation, with a ~1.48% reserve funded for capital items. This is a cleaner structure than a double-net lease that would leave the trust with structural responsibility.
A 9.9-year weighted-average lease term with staggered expirations (e.g., O'Reilly 2033, Dollar Tree 2036) underpins durable contractual income across the targeted hold. Income growth is modest and contractual, lifting cash-on-cash from 5.20% to 5.70% over ten years rather than through operational upside.
Total upfront load is low at ~8.83% of equity (7.51% selling/offering plus a 1.07% acquisition fee and a 0.25% reallowance) - among the lowest on the ledger - and the offering feeds ExchangeRight's Essential Income REIT, which targets acquiring the DST interests within ~10 years via an optional Section 721 exchange, cash-out, or combination.
Analysis
Insights
ExchangeRight Net-Leased All-Cash 20 is a debt-free, income-oriented core net-lease vehicle whose return is almost entirely contractual: a 5.20%-to-5.70% cash-on-cash schedule (~5.40% average) from six single-tenant necessity-retail leases with a 9.9-year WALT, no leverage, and no value-add. Relative to the sponsor's smaller All-Cash 19, this portfolio is more diversified (six assets/five brands, largest tenant ~28% of NOI versus a 58% anchor) and carries a uniformly investment-grade tenant roster on a true triple-net master lease - a cleaner credit and structural profile - at a slightly higher 5.20% going-in yield and a lower ~8.83% load. The defining structural feature remains ExchangeRight's REIT aggregation model: the likely terminal path is a Section 721 roll-up into the non-traded Essential Income REIT rather than a third-party sale, attractive for tax-deferral continuity and stable income but ceding control, liquidity, and valuation transparency to a sponsor-managed NAV REIT and contingent on that REIT's capital. The debt-free design is defensive in a higher-for-longer environment, but the modest, largely flat yield and the absence of leverage cap total return, leaving terminal value, Texas concentration, and tenant retention at the 2033/2036 expirations as the dominant sensitivities. No tax-equivalent yield is disclosed.
Advantages
A debt-free, six-property single-tenant net-lease portfolio of necessity-based discount-retail and auto-parts tenants (Dollar General, Dollar Tree, O'Reilly, Napa, Tractor Supply) - all investment-grade-rated - with a 9.9-year WALT and a 5.20% going-in cash flow escalating to 5.70% (~5.40% average), sponsored by ExchangeRight, a scaled net-lease DST/REIT platform. Income is well diversified across six assets and five brands with no tenant above ~28% of NOI, the master lease is triple-net, and the unlevered structure removes all refinancing, maturity, and foreclosure risk and the equal-or-greater-debt 1031 requirement. The total load is low at ~8.83%, and the offering provides a defined exit through ExchangeRight's REIT aggregation with an optional Section 721 tax-deferred rollover into the Essential Income REIT plus cash-out and combination elections.
Concerns
Going-in cash flow is modest at 5.20% with only ~0.50% of cumulative escalation over ten years (largely flat, contractual income with no value-add or operational upside), and the absence of leverage caps total return. The leases sit with operating subsidiaries/store-level entities rather than rated parents, and the auto-parts and dollar-store formats are smaller, more fungible boxes whose re-leasing economics depend on local trade-area demand at the 2033/2036 expirations. Geographic concentration is heavy in Texas (four of six assets), exposing the portfolio to a single state's retail and economic conditions. The targeted REIT-aggregation/721 exit is not guaranteed and depends on the ExchangeRight Essential Income REIT's capital availability and willingness to acquire the interests; any 721 consideration would be units in a non-traded, sponsor-controlled REIT operating partnership with sponsor-set NAV and limited liquidity. The portfolio is small ($17.8M), the master tenant and manager are sponsor affiliates, and the Sponsor's affiliated equity-financing/bridge arrangement is repaid from offering proceeds.
