DST sponsors
ExchangeRight
ExchangeRight is a Pasadena, California sponsor of tax-advantaged real estate offerings for 1031 and 721 exchange investors: Delaware Statutory Trusts backed by long-term net leases to primarily investment-grade tenants in necessity-based industries, the Essential Income REIT, and cash management funds.
The DSTs come in three shapes. REIT Fast-Track DSTs are structured to give tax-deferred access to the Essential Income REIT through a 721 exchange after a targeted two-year DST hold. All-cash DSTs are for investors who want to stay debt-free. Financed DSTs carry long-term, non-recourse debt for investors replacing debt or seeking new depreciation. Offerings are distributed through financial professionals, and the sponsor says it invests alongside investors and uses a below-market fee structure to align interests.
ExchangeRight was launched in 2012 by partners whose 1031 due diligence and wealth management practice dates to 2002. It reports $7.8+ billion of assets under management, an 8.60% average annual total return across all 34 full-cycle offerings, $2.5+ billion in distributions, capital and gains returned to investors, and 100% of offerings meeting or exceeding cash flow projections, all as of 8/31/26. Its own history page describes a portfolio spanning over 1,400 properties and 30 million square feet across 47 states, and the Essential Income REIT is diversified across 436 properties.
Every figure above is the sponsor's own and past performance is not a guarantee, as the site says on each page. Offerings are sold by offering memorandum to investors who qualify, so read the memorandum and check the specific DST's tenant roster, debt terms, hold period, and exit options with a financial professional.
Best for
Accredited 1031 investors working through an adviser who want passive net-lease income and a defined 721 exit into a REIT. Not for investors who want control of the asset or the ability to exit on their own timetable.
What they do
- 1031 exchange DST offerings
- 721 exchange REIT Fast-Track DSTs
- All-cash (debt-free) DSTs
- Financed DSTs with non-recourse debt
- The Essential Income REIT
- Cash management funds
- Adviser tools: capital gains and 1031 timeline calculators
Details
| Attribute | Value |
|---|---|
| Founded | 2012 |
| How they charge | Offerings are sold through financial professionals; the sponsor describes a below-market fee structure and says it invests alongside investors. |
What stands out
- Reports $7.8+ billion of assets under management as of 8/31/26.
- Cites an 8.60% average annual total return across all 34 full-cycle offerings.
- States that 100% of its offerings have met or exceeded cash flow projections since inception, with $2.5+ billion returned to investors in distributions, capital, and gains.
- The Essential Income REIT is diversified across 436 properties on long-term net leases.
- Launched in 2012, out of a 1031 due diligence and wealth management practice its partners built from 2002.
Common questions
- What is a REIT Fast-Track DST?
- A DST structured to provide tax-deferred access to ExchangeRight's Essential Income REIT through a 721 exchange after a targeted two-year DST hold period. The sponsor presents the REIT step as adding diversification, liquidity potential, and estate planning benefits compared with holding the DST alone.