On Wednesday, ExchangeRight announced that its Essential Income REIT has successfully acquired a portfolio of 15 net-leased assets for $84 million. This addition brings the REIT’s total acquired assets to 352 properties, totaling 4.7 million square feet and diversified across 37 national creditworthy tenants in 34 states.
The acquisition was made possible through a tax-deferred exchange by former investors of the seller into the REIT’s Operating Partnership (OP). As part of this transaction, new investors were issued $18.2 million worth of OP Units.
According to Joshua Ungerecht, managing partner at Pasadena-based ExchangeRight, their aggregation strategy differs from traditional blind pool approaches as it begins with a large and carefully selected portfolio of properties. This strategic growth plan provides their REIT investors with a systematic pipeline for future acquisitions that offer enhanced diversification and return potential through similar net-leased properties featuring primarily investment-grade tenants.
This latest acquisition marks another successful move by ExchangeRight towards expanding its real estate investment offerings while maintaining high standards in property selection and tenant quality.
