Your 1031 DST Authority
ExchangeRight Essential Income 9 DST
Offering Overview
ExchangeRight Essential Income 9 DST is a debt-free, 100%-equity Delaware Statutory Trust ($52,850,000 across 100 interests at $528,500) sponsored by ExchangeRight Real Estate, LLC. The Trust owns a three-property, 100%-occupied, single-tenant net-leased portfolio totaling 205,857 SF: a 164,845 SF Pepsi Bottling Ventures distribution facility at 9101 Water Tower Road, Longs (Water Tower), South Carolina (leased to PBV Conway-Myrtle Beach, LLC, a Suntory/PepsiCo joint venture, through February 2039, ~$1.98M Year-1 NOI inclusive of a seller rent credit); a 21,909 SF necessity-retail asset in Dalton, Georgia (lease to September 2045, ~$483,000 NOI); and a 19,103 SF necessity-retail asset in Ruckersville, Virginia (lease to February 2046, ~$382,000 NOI). The three properties are covered by a 20-year master lease guaranteed by the ExchangeRight Essential Income REIT and its Operating Partnership, supporting a 5.35% current cash flow paid monthly. The defining feature is the exit: a planned tax-deferred 721 exchange into the Essential Income REIT (a diversified portfolio of 357 properties across 35 states leased to 40 recession-resilient, primarily investment-grade necessity-retail and healthcare tenants) approximately two years after full subscription, converting DST interests into REIT operating-partnership units.
Investment Highlights
- The offering is debt-free, eliminating leverage, refinancing, maturity, and lender-covenant risk entirely; the 5.35% cash flow is unlevered and supported by a 20-year master lease guaranteed by the ExchangeRight Essential Income REIT and its Operating Partnership, so during the targeted two-year hold the income depends on the REIT guaranty rather than on property-level leverage.
- Despite the diversified-portfolio framing, the DST itself is concentrated: it holds only three properties, and the single Pepsi Bottling Ventures facility in Longs, South Carolina generates roughly 70% of Year-1 NOI. The marketed diversification (357 properties, 40 tenants, 35 states) is the profile of the Essential Income REIT and materializes only if and when the 721 exchange is completed, not during the DST hold.
- The anchor lease is to PBV Conway-Myrtle Beach, LLC, a Pepsi Bottling Ventures entity (a joint venture of Suntory and investment-grade PepsiCo), running through February 2039, with the two smaller necessity-retail assets carrying even longer terms (to 2045 and 2046). The Longs Year-1 NOI is inclusive of a seller rent credit, a temporary support to the in-place economics, and the bottling facility is a large special-purpose building with limited alternative use at eventual expiry.
- The entire investment thesis is built around an accelerated, tax-deferred 721 exchange into the Essential Income REIT roughly two years out, giving investors a defined path from a concentrated three-asset DST into a large diversified necessity-retail and healthcare REIT while continuing tax deferral. The trade-off is that the exit is a plan rather than a guarantee, is effected at the REIT and Sponsor discretion, and converts investors into REIT unitholders subject to the REIT portfolio, valuation, and redemption terms.
- ExchangeRight is an experienced, vertically integrated sponsor with more than 100 consecutive DST offerings, approximately $6.2 billion invested, a stated 100% historical rent-collection record, and 8,600-plus investors; of its 33 full-cycle offerings to date, each is reported to have achieved 100% of projected investor distributions without loss of investor capital. This track record underpins confidence in the master-lease guaranty and the 721-exit mechanics that define this vehicle.
Forecasted Cash Flow
Projected annual cash-on-cash distributions with the corresponding tax-equivalent yield over the hold, based on the sponsor’s underwriting assumptions.
Illustrative projections only — targeted distributions are not guaranteed and actual results will vary. Tax-equivalent yield assumes depreciation shelter of distributed income.
Analyst Notes
This is best understood not as a property investment but as a short-duration, debt-free, master-lease-guaranteed income coupon (5.35%) that is engineered to convert into Essential Income REIT units via a tax-deferred 721 exchange after about two years. The risk-adjusted profile therefore turns on two things: the durability of the REIT master-lease guaranty during the hold, and the execution and valuation of the 721 exchange at exit; the three underlying properties matter mainly as collateral and as the basis for the exchange ratio. The debt-free structure genuinely removes leverage and refinancing risk and makes the near-term income durable, but the return is modest and the concentrated, special-purpose nature of the DST own assets sits uneasily with the diversification narrative, which only becomes real post-exchange. For an investor whose objective is current tax-advantaged income with a defined pathway into a larger diversified necessity-retail and healthcare REIT, the vehicle is internally coherent; the items least reflected in the 5.35% headline are the 721 execution-and-valuation dependency, the DST-level asset and tenant concentration, the reliance on the REIT guaranty for the in-place income, and the cost spread between equity raised and real estate value.
Pros
The structure is conservative on its face: debt-free with no leverage or refinancing exposure, a 100%-occupied single-tenant net-lease portfolio, and a 5.35% current cash flow paid monthly and backed by a 20-year master lease guaranteed by the ExchangeRight Essential Income REIT and its Operating Partnership. The anchor tenant is an investment-grade-affiliated Pepsi Bottling Ventures entity on a lease through 2039, supplemented by two necessity-retail assets with long terms to 2045 and 2046. The offering provides a clearly defined, tax-deferred 721 exit into a large diversified REIT (357 properties, 35 states, 40 primarily investment-grade necessity tenants) approximately two years out, and the sponsor brings a deep track record of 100-plus DST offerings, $6.2 billion invested, a 100% historical rent-collection record, and 33 full-cycle offerings reported at 100% of projected distributions.
Cons
The diversified characterization applies to the destination REIT, not the DST, which is a concentrated three-property pool in which a single Pepsi Bottling Ventures facility produces roughly 70% of Year-1 NOI, so asset and tenant concentration is high during the hold and the Longs Year-1 NOI is propped by a seller rent credit. The investment value realization depends almost entirely on the 721 exchange into the Essential Income REIT occurring at an acceptable exchange value roughly two years out, an outcome that is planned but not guaranteed and is effected at the REIT and Sponsor discretion; investors who exchange become REIT operating-partnership unitholders exposed to the REIT leverage, portfolio valuation, distribution policy, and redemption terms. During the hold, the 5.35% income relies on the REIT and Operating Partnership ability to honor the master-lease guaranty rather than purely on the three tenants rent. The capital structure also embeds a meaningful spread between equity raised and underlying real estate value, with roughly 8% in fees and selling costs plus an additional ~3.4% of non-accountable acquisition-related costs (including ~$1.13M of equity-financing and bridge costs) layered into the acquisition cost, which bears on the eventual 721 exchange ratio. Finally, the large Pepsi bottling/distribution building is a special-purpose asset with limited alternative use should the planned exit not occur and the asset need to be re-tenanted at lease expiry.
Financing
This offering is unleveraged — the DST holds its assets debt-free (0% loan-to-value), so no mortgage financing applies.
Benchmark Comparison
| Metric | This Offering | Benchmark | Difference |
|---|---|---|---|
| Average Yield | 5.35% | 5.18% | +3.28% |
| Max Yield | 5.35% | 5.37% | −0.37% |
| 10-Yr Income Growth | 0.00% | 9.04% | −100.00% |
Benchmark reflects the average of comparable Net Lease offerings. Differences are relative to the benchmark.
Offering Documents
Offering Documents Available By Request
About the Sponsor
ExchangeRight has scaled into one of the defining net-lease DST franchises, ending 2025 as the fifth-largest sponsor in the 1031 DST market with roughly $7.0 billion in AUM across more than 1,400 properties and 27 million square feet in 48 states. Founded in 2012 and vertically integrated out of Pasadena, the firm anchors its portfolios in investment-grade-tenanted necessity retail and healthcare—pharmacies, grocery, dollar stores—whose recession-resistant cash flows underpin its consistency. The track record is the headline: 34 full-cycle offerings averaging an 8.60% annual return with no loss of investor capital, all 126 offerings meeting or exceeding distribution projections, and an Essential Income REIT that supplies a 721 UPREIT exit. That combination of scale, tenant credit discipline and full-cycle performance makes it a benchmark for the category.
This page describes a specific Delaware Statutory Trust offering (ExchangeRight Essential Income 9 DST) and is provided for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offering is made solely to verified accredited investors and only by means of a confidential private placement memorandum (PPM).
All figures shown — including minimum investment, cash-flow projections, tax-equivalent yield, loan-to-value, and hold period — reflect the sponsor's current estimates and assumptions and are not guarantees of future performance. Tax-equivalent yield depends on each investor's tax circumstances; projected distributions may not be achieved and actual results will vary. Sponsor track record, benchmark data, and full-cycle averages describe prior programs and are not indicative of the results of this offering.
An investment in a DST is speculative, illiquid, and involves a high degree of risk, including the possible loss of the entire amount invested. There is no public market for these interests, distributions are not guaranteed, and investors have no control over property operations. 1031 exchange and tax treatment depend on each investor's individual circumstances and on tax laws that are subject to change; consult your own tax and legal advisors.
Tax-equivalent yield represents the pre-tax yield a fully taxable investment would need to generate in order to match the after-tax cash flow of this offering. It assumes that a portion of distributions is sheltered by depreciation and other deductions, and it depends entirely on each investor's individual tax bracket, state of residence, and holding structure. It is illustrative only and is not a projection of return. Cap rate equivalent is the implied capitalization rate (net operating income divided by purchase price) shown solely for comparison to direct real estate; it is not a distribution rate, a yield, or a measure of investor return.
This offering and all terms shown are subject to change, withdrawal, or cancellation at any time without notice, and availability is not guaranteed. Nothing on this page creates a commitment or reservation. An investment is confirmed only upon the sponsor's acceptance of fully executed subscription documents; no other communication, indication of interest, or reservation constitutes a binding investment.