PASADENA, Calif. – ExchangeRight, one of the nation’s leading providers of diversified real estate DST and REIT investments, has announced investors have fully subscribed ExchangeRight’s Essential Grocery DST, a $29.2 million all-cash offering featuring a 61,916-square-foot net-leased property tenanted by ShopRite, an essential business successfully operating in the historically recession-resilient grocery industry. The offering has been structured to provide investors with monthly distributions starting at an annualized rate of 4.09% from in-place revenue.
The offering’s property is located in Uniondale, NY, featuring a 5-mile population of over 550,000 in an infill location on Long Island, NY, with limited developable land and significant development restrictions. This particular ShopRite store is ranked in the top 20% in estimated total visits for reporting grocery stores in NY state and is a top performer in the MSA. The lease includes a contractual rent bump of 10% on May 1, 2026, and has a 10% rent increase in each of its first two 5-year options, followed by 8% increases for the remaining four option terms.
The offering’s exit strategy intends to provide investors with a cash-out refinance option in addition to the ability to complete a 1031 exchange, 721 exchange, cash out, or a combination of these options. Predicated upon successful future financing of the property, ExchangeRight anticipates that investors will have the option to receive a portion of their initial investment using a tax-deferred cash-out refinance, with the potential to complete a tax-deferred 721 exchange of non-refinanced equity in a later transaction with an acquiring REIT.
“We are pleased to provide access to our historically recession-resilient investment strategy for investors who have a need for an all-cash offering,” said Joshua Ungerecht, a managing partner at ExchangeRight. “In addition to creating investments that provide capital preservation and stable income during difficult times like these, we are also excited to provide a tax-deferred cash-out refinance option to investors, which may allow them to pull future cash out of the 1031 exchange cycle to be reinvested into more flexible wealth management alternatives.”
ExchangeRight and its affiliates’ vertically integrated platform features more than $5.6 billion in assets under management that are diversified across over 1,200 properties, and 23 million square feet throughout 47 states. ExchangeRight pursues its passion to empower people to be secure, free, and generous by providing REIT, fund, 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. The company structures and manages net-leased portfolios of assets backed primarily by investment-grade corporations that successfully operate in the necessity-based retail and healthcare industries, as well as diversified value-add portfolios of inline and outparcel retail properties shadow-anchored by strong-performing grocery tenants. Past performance does not guarantee future results. Please visit www.exchangeright.com for more information.
Senior Media Relations Officer