On Wednesday, ExchangeRight announced that its Essential Income REIT has completed the acquisition of a portfolio consisting of 15 net-leased assets for $84 million. This addition adds 231,654 square feet of net-leased property to the REIT’s growing portfolio. With this latest purchase, the REIT now holds a total of 352 diversified net-leased properties across 34 states and totaling over 4.7 million square feet.
As part of this transaction, former investors from the seller took advantage of a tax-deferred exchange under Section 721 and invested in the REIT’s Operating Partnership (OP). This resulted in $18.2 million worth OP Units being issued to new investors.
According to Joshua Ungerecht, managing partner at Pasadena-based ExchangeRight: “Rather than adopting a blind pool approach, our Essential Income REIT strategically acquires large portfolios after thorough vetting.” He further added that this method provides their investors with an organized pipeline for future acquisitions which leads to enhanced diversification and potential returns supported by similar high-quality properties with mostly investment-grade tenants.
The post titled “ExchangeRight Acquires Net-Leased Portfolio via REIT” was originally published on Connect CRE.
