ExchangeRight’s Net-Leased All-Cash 16 DST Fully Subscribed, Providing 1031 Exchange Investors Historically Recession-Resilient Retail

PASADENA, Calif.--(BUSINESS WIRE)--ExchangeRight has announced the full subscription of Net-Leased All-Cash 16 DST, which provides 1031 exchange and cash investors with a $46.1 million portfolio of diversified net-leased real estate backed by recession-resilient tenants in necessity-based industries. The offering is designed to provide investors with stable monthly distributions, currently at an annualized rate of 5.08%, which is covered entirely by in-place lease revenue. Net-Leased All-Cash 16 DST is a closed offering and is not accepting new investors.

The portfolio consists of four long-term net-leased properties tenanted by Hy-Vee Grocery, Sprouts Farmers Market, Tractor Supply Company, and Dollar General Market. These assets feature an initial weighted-average lease term of 18.2 years. Spanning a total of 151,226 square feet, the properties are located across Florida, Minnesota, Louisiana, and Vermont.

The Net-Leased All-Cash 16 DST exit strategy is structured to provide investors with a tax-deferred cash-out financing option, along with the potential to complete a 1031 exchange, a 721 exchange into the Essential Income REIT, cash out, or any combination of these options at exit. Pending successful future financing, the company intends to provide investors with the option to receive a tax-deferred lump sum payment of 20%+ of their initial investment through a cash-out financing, and a tax-deferred 721 exchange of the approximately 80% non-financed equity into the Essential Income REIT. There is no guarantee that the DST’s objectives, including its exit strategies, will be achieved.

“The full subscription of Net-Leased All-Cash 16 DST highlights the strong demand for unleveraged and diversified, net-leased real estate offerings that are designed to provide capital preservation, stable income, and strategic exits,” said Warren Thomas, managing partner at ExchangeRight. “This series is structured to serve the current needs of 1031 exchange investors while providing an on-ramp to our Essential Income REIT through the tax-deferred 721 exchange option. Our focus remains on stewarding our investors’ wealth through recession-resilient assets that have historically performed throughout all phases of the economic cycle.” The past performance of ExchangeRight and its previous offerings does not guarantee future performance.

About ExchangeRight

ExchangeRight and its affiliates’ vertically integrated platform features more than $7.2 billion in assets under management that are diversified across over 1,400 properties, and 28 million square feet throughout 47 states, as of February 28, 2026. 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.