ExchangeRight Net-Leased Portfolio 75 DST Overview
ExchangeRight Net-Leased Portfolio 75 DST is a Regulation D, Rule 506(b) private placement offering 100 Class 1 beneficial interests in a Delaware Statutory Trust at $475,700 per interest, for a maximum equity raise of $47,570,000 and a total capitalization of $84,900,000 ($47,570,000 of equity and $37,330,000 of non-recourse debt). Formed on December 1, 2025 and sponsored by ExchangeRight Real Estate, LLC, the Trust owns a diversified portfolio of six single-tenant, net-leased properties that are 100% occupied and leased to national tenants operating in historically recession-resilient, necessity-based retail and healthcare industries. The properties span six states: Burleson, Texas (BioLife Plasma Services, whose lease is guaranteed by Baxalta, Inc., a subsidiary of Takeda Pharmaceutical); Adrian, Michigan and Strongsville, Ohio (Dollar General); Little Rock, Arkansas (FedEx); East Hanover, New Jersey (Hobby Lobby); and Villa Rica, Georgia (Tractor Supply). The portfolio carries a weighted-average remaining lease term of approximately 11.8 years and is diversified by property, location, tenant, industry, and lease expiration, with the majority of income backed by investment-grade-rated tenants. The Trust is a passive owner: a Sponsor-affiliated Master Lessee holds a triple-net master lease (guaranteed by ExchangeRight Income Fund Operating Partnership, LP) and is responsible for property operations, while investors receive monthly distributions targeted at a 5.00% first-year annualized cash flow that is projected to step up to 5.62% by year five. Structured for accredited investors completing a Section 1031 like-kind exchange, the offering is designed to deliver passive, management-free ownership of net-lease real estate with ongoing tax deferral. The Sponsor's stated exit strategy prioritizes capital preservation and stable income and targets a tax-deferred Section 721 roll-up of the DST interests into the ExchangeRight Essential Income REIT within roughly five to ten years, with alternative options of a future 1031 exchange or a taxable cash-out. It suits 1031 exchangers and income-oriented investors who have no need for liquidity and can bear the loss of their entire investment.
Highlights
The portfolio is intentionally diversified across six distinct markets in six states, Texas, Michigan, Ohio, Arkansas, New Jersey, and Georgia, rather than being concentrated in a single metro or region, which spreads exposure to local economic, employment, and real estate conditions. Each asset was selected under ExchangeRight's aggregation strategy for strong site-level fundamentals in necessity-based retail and healthcare corridors, including the FedEx logistics facility in Little Rock, Arkansas, the BioLife plasma-collection center in the Dallas-Fort Worth suburb of Burleson, Texas, and Dollar General, Tractor Supply, and Hobby Lobby locations serving established suburban and rural trade areas. Because these tenants operate in convenience-, distribution-, and staples-driven segments, their sites are chosen for everyday consumer traffic and logistics access, which historically supports occupancy through varied economic cycles. Geographic diversification across six separate states is designed to limit the impact that a downturn in any single local market could have on the portfolio's overall income.
All six properties are 100% occupied, single-tenant, net-leased buildings backed by well-capitalized national operators, and the majority of the portfolio's income is backed by investment-grade-rated credit. FedEx (S&P BBB) anchors the portfolio, generating approximately 46.44% of net operating income from a 303,596-square-foot Little Rock logistics facility, followed by Hobby Lobby at 21.36%, BioLife Plasma Services, whose lease is guaranteed by Baxalta, Inc., a subsidiary of Takeda Pharmaceutical (S&P BBB+), at 14.61%, Tractor Supply (S&P BBB) at 10.73%, and two Dollar General stores (S&P BBB) at 6.86% combined. The individual leases carry staggered, long-dated expirations running from 2036 through 2046, producing a weighted-average remaining lease term of roughly 11.8 years. The leases are structured on a triple-net basis through the Master Lessee, meaning the operators bear responsibility for taxes, insurance, and maintenance, and several leases include tenant renewal options that could extend occupancy beyond their stated expirations.
The Trust financed the portfolio with a single $37,330,000 first-mortgage loan from Wells Fargo Bank, N.A., producing a conservative offering loan-to-value of 43.97% against total capitalization of $84,900,000. The loan carries a five-year, fixed-rate term at 5.120% and is interest-only for the entire term, which removes near-term interest-rate reset risk during the anticipated hold and maximizes distributable cash flow by deferring principal amortization. Annual debt service is fixed at approximately $1,937,842, and the loan may be prepaid without penalty beginning six months prior to maturity, providing flexibility for the Sponsor's targeted exit. The financing is non-recourse to investors, with customary bad-boy carve-outs and environmental indemnities backstopped by the Sponsor's principals rather than by the Owners. The modest leverage level and the fixed-rate, interest-only structure are intended to support stable monthly distributions and capital preservation, though the loan includes a cash-trap mechanism that sweeps excess cash flow if the debt service coverage ratio falls below 1.35x.
ExchangeRight Real Estate, LLC provides a vertically integrated platform spanning underwriting, acquisitions, financing, asset and property management, leasing, and dispositions, and manages the Trust through its wholly owned affiliate, ExchangeRight Asset Management, LLC. As of March 31, 2026, the Sponsor and its affiliates stewarded more than $7.2 billion in assets under management across over 1,400 properties totaling roughly 28 million square feet in 47 states, leased to 96 tenants across 18 primarily necessity-based industries, on behalf of more than 9,000 investments. The Sponsor reports having returned over $2.6 billion of distributions, capital, and gains to investors inception-to-date, and states that 100% of its 36 full-cycle offerings have met or exceeded their cash-flow projections, with an average annual total return of 8.49% on those full-cycle offerings. The platform is led by Key Principals Joshua Ungerecht, David Fisher, and Warren Thomas. Past performance does not guarantee future results, but this depth of net-lease and REIT experience underpins the offering's aggregation and exit strategy.
The offering is structured specifically to serve as qualifying replacement property for investors completing a Section 1031 like-kind exchange, supported by a tax opinion from Venable LLP treating the DST interests as direct fractional ownership of real estate consistent with IRS Revenue Ruling 2004-86. Investors defer capital gains taxes on their relinquished property while receiving monthly income that is largely sheltered by depreciation during the hold. The Sponsor's targeted exit is a tax-deferred Section 721 exchange, or roll-up, of the DST interests into the operating partnership of the ExchangeRight Essential Income REIT, which is intended to continue deferring taxes while providing increased diversification, potential liquidity, and estate-planning benefits. Investors are also targeted the optional flexibility to instead pursue a future Section 1031 exchange, cash out on a taxable basis, or a combination of these options at exit. These exit paths are targets only and depend on the REIT's capital availability; a Section 721 exchange, once elected, ends the ability to complete a future 1031 exchange.
Analysis of ExchangeRight Net-Leased Portfolio 75 DST
Insights
Underwrite NLP 75 as a coupon, not a growth vehicle — investment-grade net-lease income packaged for exchangers who want passive ownership and a stopped tax clock, engineered for capital preservation over upside. Fixed-rate, interest-only debt at 43.97% LTV builds no equity, so the entire return is the distribution plus residual value at exit; cash flow opens at 5.00%, steps to 5.62% by year five, and averages 5.30%. Against the marketplace's net-lease benchmark that is fair, not cheap: current income and peak yield both merely Meet the ~5.1% and ~5.3% category averages, and only projected income growth screens Above Average. Usefully, the year-one distribution is covered by in-place NOI at about 1.09x — a real if thin cushion, not a return of capital — so the coupon is earned, not manufactured. What you overpay for is packaging; the 9.36% all-in load is heavy, and every point is capital that never reaches the real estate. The crux is tenant concentration: six properties in six states reads diversified, but FedEx alone drives ~46% of NOI on a 2036 lease, so any credit slippage or non-renewal there is the single biggest threat to distributions, and each single-tenant expiration is binary re-leasing risk. Watch the FedEx credit, actuals against pro forma, and the 1.35x DSCR cash-trap trigger. The buried point: the $84.9M offering price exceeds the lender's $74.66M appraised value, so the portfolio must appreciate just to return capital on an open-market sale — precisely why the sponsor steers you toward an optional 721 roll-up into its own REIT, where the Manager, not the market, sets the exit price. ExchangeRight's own full-cycle record, roughly a 1.4x equity multiple and ~7.8% a year over a ~5.4-year hold, confirms the profile: income-rich, appreciation-light. Own it if you're an income-first exchanger who values certainty of closing, IG credit, and hands-off ownership, can clear the $100,000 minimum, and accept that the Manager controls timing, valuation, and exit. Pass if you need liquidity, underwrite appreciation, want a vote, or won't pay ~9% to affiliated parties whose fees are earned regardless of outcome.
Advantages
Advantages specific to this offering start with a genuinely diversified net-lease portfolio: six 100%-occupied, single-tenant properties spread across six states, five tenants, and five necessity-based retail and healthcare industries, which reduces reliance on any single asset, market, or operator relative to a single-property DST. Credit quality is a defining strength; FedEx, Dollar General, Tractor Supply, and the Takeda-guaranteed BioLife lease are all investment-grade rated (S&P BBB to BBB+), and long-dated leases running from 2036 to 2046 give a weighted-average remaining term near 11.8 years, providing visibility into future income. The capital structure is conservative: a 43.97% loan-to-value, a fixed 5.120% interest rate, and interest-only payments for the full five-year Wells Fargo term lock in debt service at roughly $1,937,842 annually, remove refinancing and reset risk during the hold, and support distributions that are targeted to rise from 5.00% in year one to 5.62% by year five and are paid monthly. The triple-net master lease structure makes ownership fully passive; the Sponsor-affiliated Master Lessee, with rent guaranteed by ExchangeRight Income Fund Operating Partnership, handles operations, taxes, insurance, and maintenance. The DST wraps all of this in a vehicle pre-qualified for 1031 exchange treatment under Revenue Ruling 2004-86 and backed by a Venable LLP tax opinion, letting exchangers defer gains and meet tight 45-day identification and 180-day closing deadlines with a turnkey, pre-packaged asset. ExchangeRight brings a substantial, relevant track record, more than $7.2 billion in AUM, 1,400-plus properties, and 36 full-cycle offerings that it reports have all met or exceeded cash-flow projections, and it offers a differentiated, multi-path exit via a targeted Section 721 roll-up into its Essential Income REIT, with optional 1031 or cash-out alternatives that provide more end-of-hold flexibility than many single-asset DSTs.
Concerns
The risks are substantial and disclosed at length in the PPM. The interests are illiquid with no public market, transfer requires Sponsor and Lender consent, and investors must be prepared to hold for an indefinite period and to lose their entire investment. Investors have no control and no voting rights; the Manager and Trustee make all decisions, including whether and when to sell, and Owners hold only beneficial interests, not legal title, with no ability to partition or force a sale. The DST is a deliberately inflexible vehicle: it cannot renegotiate the loan or master lease, raise new capital, or reinvest sale proceeds, and adverse circumstances affecting even one of the six properties can trigger a springing LLC Conversion that would likely eliminate the ability to complete a future 1031 exchange. Despite holding six properties, this is a concentrated, undiversified single-portfolio investment with heavy tenant concentration; FedEx alone drives about 46.44% of NOI, so a single tenant default would materially impair income, and because each property is single-tenant, every lease expiration carries binary re-leasing risk. The offering is leveraged; a decline in rents could cause a loan default and foreclosure, and the loan imposes a cash-trap if the debt service coverage ratio falls below 1.35x. Fees and load are significant and are earned regardless of profitability: selling commissions and expenses of roughly 6.25% of equity, an acquisition fee, ongoing property and asset management fees of 2.90% of gross rents, a $750 annual trustee fee, and a 2.0% disposition fee. Notably, the $84,900,000 purchase price for the interests exceeds the Lender's appraised property value of $74,660,000, so the properties must appreciate for investors to recover their full investment on a sale. Investors rely entirely on the Sponsor and on a Manager and Master Lessee that are newly formed with limited assets and no operating history, and numerous conflicts of interest exist because affiliated entities set fees and terms without arm's-length negotiation. Distributions are not guaranteed, may be funded partly from reserves, and can be suspended; the targeted 721, 1031, and cash-out exit options are not guaranteed and depend on the REIT's capital availability. Tax treatment, including 1031 qualification, is not assured, the offering is anticipated to generate unrelated business taxable income for IRAs and qualified plans, and market, interest-rate, environmental, casualty (some properties carry no flood or earthquake coverage), and re-leasing risks all apply.
ExchangeRight Net-Leased Portfolio 75 DST — Complete Offering Data
Offering & Structure
Investment NameExchangeRight Net-Leased Portfolio 75 DST
SponsorExchangeRight
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusLimited Availability
Last Updated2026-08-10
Size & Availability
Total Offering$84,900,000
Equity$47,570,000
Debt$37,330,000
Available Equity$1,447,450 (3% of equity)
Minimum Investment$100,000
Total Load9.36%
Initial Reserves4.87%
Property
Property TypeNet Lease
StrategyCore
LocationAR, GA, MI, NJ, OH, TX
Market TierTier 2
Income & Projections
Average Yield5.30%
Projected Yields (Y1–Y10)Y1 5.00% · Y2 5.14% · Y3 5.30% · Y4 5.45% · Y5 5.62%
Tax-Adjusted Yield11.84%
Cap Rate Equivalent8.59%
Year 1 NOI$4,493,303
Y1 Payout Ratio1.09
Financing
In-Place LTV43.97% LTV
LenderWells Fargo Bank, National Association
Loan TypeFixed
Interest Rate5.12% (Fixed)
Loan Term5 years
I/O Period5 years
AmortizationN/A (interest-only)
Y1 DSCR2.32x
Exit
Estimated Hold Period5 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income5.30% vs 5.08% market — Meets Average
Growth12.40% vs 7.44% market — Above Average
Peak5.62% 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.
