Pasadena-Based ExchangeRight Fully Subscribes $63.34 Million Net-Leased Portfolio, Its Latest Trust Built to Roll Into Its REIT

ExchangeRight, the real estate investment firm founded in Pasadena in 2012 and headquartered at 1055 E. Colorado Blvd., announced Wednesday, Sept. 2, that its Net-Leased Portfolio 74 DST has been fully subscribed, closing the $63.34 million offering to new investors.

A DST, or Delaware statutory trust, lets multiple investors hold fractional interests in a real estate portfolio. The structure is commonly used by investors seeking to defer capital-gains taxes through Section 1031 exchanges of the federal tax code.

The portfolio holds 11 long-term, net-leased properties in 11 markets across California, Iowa, Michigan, Mississippi, Nebraska, North Carolina, Ohio, Pennsylvania and Texas, with a weighted-average lease term of 16.3 years, the company said in a news release. The tenants include Tractor Supply Company, Dollar General, CVS Pharmacy and Dollar General Market, which the company described as historically recession-resilient national companies operating in necessity-based industries.

The offering carries $26.75 million in non-recourse debt, a 42.23 percent loan-to-value ratio, according to the company. Investors receive monthly distributions at a current annualized rate of 5 percent, which the company said is covered by lease revenue already in place.

ExchangeRight said the portfolio was structured for a potential future acquisition by the Essential Income REIT, the company’s real estate investment trust, and that investors are offered several exit options: a tax-deferred Section 721 exchange into the REIT, a tax-deferred Section 1031 exchange, a cash-out, or a combination of those. The company cautioned that there is no guarantee those objectives, including the exit strategies, will be achieved.

That path has been used before. Filings with the U.S. Securities and Exchange Commission show the REIT’s operating partnership merged two earlier trusts, Net-Leased Portfolio 25 and Net-Leased Portfolio 27, into the REIT on July 30 and Aug. 5, 2026, issuing operating-partnership units to the trusts’ investors in exchange for their beneficial interests.

“Net-Leased Portfolio 74 continues our disciplined approach to building diversified portfolios of necessity-based real estate on behalf of investors,” said Joshua Ungerecht, a managing partner at ExchangeRight, in the release. “By combining long-term net leases with investment-grade tenants successfully operating across historically recession-resilient industries, we aim to provide dependable passive income that can carry investors throughout economic cycles.”

The firm was founded by managing partners Warren Thomas, a certified public accountant, Ungerecht and David Fisher, who built the company to structure the kind of net-leased portfolios they could not find on the market for their own clients, according to company statements.

ExchangeRight describes itself as one of the nation’s leading providers of diversified REIT and DST investments. Its platform managed more than $7.7 billion in assets across more than 1,400 properties and 30 million square feet in 47 states as of July 31, 2026, according to the company, up from the $7.4 billion and 28 million square feet it reported in May. The firm structures and manages net-leased portfolios of properties leased primarily to investment-grade corporations in the industrial, necessity-retail and health care industries, and also offers cash management funds.

The company noted that past performance does not guarantee future results.