ExchangeRight Net-Leased All-Cash 20 DST

Offering 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).

Investment 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.

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

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.

Financing

This offering is unleveraged — the DST holds its assets debt-free (0% loan-to-value), so no mortgage financing applies.

Benchmark Comparison

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

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.