ExchangeRight’s Essential Income 3 DST Fully Subscribed Amid Soaring Investor Demand for DSTs With Expedited 721 REIT Access

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PASADENA, Calif.--(BUSINESS WIRE)--Dec 2, 2025--

ExchangeRight, one of the nation’s leading providers of diversified real estate REIT and DST investments, has announced the full subscription of Essential Income 3 DST. This full subscription reflects strong investor demand for accelerated access to ExchangeRight’s Essential Income REIT. This offering is designed to enable accredited investors to become REIT investors through a tax-deferred 721 exchange, after a targeted two-year hold period. Essential Income 3 DST is a closed offering and is not accepting new investors.

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PASADENA, Calif. – Tenants occupying properties in ExchangeRight's Essential Income 3 DST, a closed offering that is not accepting new investors (Tuesday, December 2, 2025).

Essential Income 3 DST is a $22.6 million portfolio of net-leased real estate, backed by primarily investment-grade tenants operating in necessity-based industries. The portfolio provides investors with monthly distributions at a current rate of 5.50%, and comprises seven properties across Florida, Alabama, Nevada, and New Jersey, totaling 67,374 square feet, leased to AutoZone, Dollar General, Tractor Supply, Dollar Tree, and Truist Bank.

The offering is fully covered by in-place rents and is supported by a 20-year master lease guarantee from the Essential Income REIT and its Operating Partnership. The DST enhances tenant and geographic diversification while supporting ExchangeRight’s scalable aggregation strategy and REIT pipeline.

After approximately two years, the exit plan for DST investors is to complete a tax-deferred 721 exchange into the Essential Income REIT. The exit has been designed to provide investors pro rata access to the REIT’s monthly income, broader diversification, increased growth potential, enhanced liquidity, and estate planning advantages. The Essential Income REIT is currently invested in a diversified portfolio of 361 properties with long-term net leases backed by 39 historically recession-resilient tenants. There is no guarantee that the Essential Income 3 DST will achieve its exit strategy or investment objectives.

“We are pleased to continue executing our strategy to meet the evolving financial objectives of our investors,” said Joshua Ungerecht, a managing partner at ExchangeRight. “The full subscription of Essential Income 3 DST reflects the market’s strong appetite for DSTs that offer an accelerated path to REIT ownership. This offering, consistent with our Essential Income DST platform’s objective, is designed to efficiently transition investors into the Essential Income REIT upon exit, providing them with greater diversification, access to liquidity potential, and continued consistent monthly income backed by necessity-based tenants.”

About ExchangeRight

ExchangeRight and its affiliates’ vertically integrated platform features more than $6.9 billion in assets under management that are diversified across over 1,400 properties, and 27 million square feet throughout 48 states, as of October 31, 2025. ExchangeRight pursues its passion to empower people to be secure, free, and generous through its Essential Income REIT and 1031 DST portfolios that target secure capital, stable income, and strategic exits, all of which have historically met or exceeded investor projections since ExchangeRight’s inception. On behalf of investors nationwide, the company structures and manages net-leased portfolios of assets backed primarily by investment-grade corporations that have successfully operated in the necessity-based retail and healthcare industries. Past performance does not guarantee future results. Please visit www.exchangeright.com for more information.

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KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY FINANCE SUPERMARKET PROFESSIONAL SERVICES REIT DISCOUNT/VARIETY RETAIL

SOURCE: ExchangeRight

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PUB: 12/02/2025 09:00 AM/DISC: 12/02/2025 09:00 AM

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