California + Los Angeles + Net Lease | September 20, 2023

ExchangeRight Acquires Net-Leased Portfolio via REIT

ExchangeRight said Wednesday that its Essential Income REIT has acquired a portfolio of 15 net-leased assets for $84 million, adding 231,654 square feet of net-leased property. This latest acquisition brings the REIT’s acquired assets to 352 net-leased properties diversified across 37 national creditworthy tenants, 34 states and 4.7 million square feet.

In connection with the transaction, former investors of the seller performed a tax-deferred 721 exchange into the REIT’s Operating Partnership (OP), resulting in the issuance of $18.2 million of OP Units to new investors.

“Rather than taking a blind pool approach, the Essential Income REIT’s aggregation strategy begins with a large, fully identified portfolio of rigorously vetted properties,” said Joshua Ungerecht, a managing partner at Pasadena-based ExchangeRight. “This pre-arranged strategic growth provides our REIT investors with a systematic pipeline of future acquisitions to achieve enhanced diversification and return potential, supported by similar net-leased properties with primarily investment-grade tenants.”

Connect Orange County will take place Sept. 27, 2023 at VEA | Newport Beach Marriott in Newport Beach, concurrently with Connect Healthcare Real Estate on Sept. 27 and 28. Click here to register for Connect Orange County, and here to register for Connect Healthcare Real Estate.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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