Net-Leased Essential Grocery DST
Net lease retail in Uniondale, NY — sponsored by ExchangeRight
Files with the SEC as ExchangeRight Essential Grocery DST
Minimum investment
$100k
Offering size
$19.2M
How much has sold
100.0%
Asset type
Net lease retail
Location
Uniondale, NY
Financing
All cash. This offering reports no mortgage debt.
Sponsor-reported, from SEC filings and cited sources.
What is this, in one paragraph?
ExchangeRight Essential Grocery DST was a Delaware statutory trust — a structure that lets 1031 exchangers hold fractional interests in real estate — owning one net-leased ShopRite supermarket in Uniondale, New York.1 The sponsor marketed it as a $29.2 million all-cash offering and announced on October 26, 2023 that investors had fully subscribed it.2 It is closed to new investors.
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These links support the historical public record; individual details may come from different sources.
On a 45-day clock? Find day 45 and day 180 from the sale date, then come back to this record.
What exactly is the property?
The Trust's asset is a single supermarket building in Uniondale, on Long Island, New York, leased to the grocer ShopRite.2 Sponsor materials do not give a street address, year built, or purchase price. Long Island Business News reported an August 2022 sale of a Uniondale ShopRite at 1121 Jerusalem Avenue for $24.75 million, but that article names ExchangeRight Real Estate rather than this Trust, so the link is unresolved.3
- Reported location
- Uniondale, NY
- Property size
- 61,916 square feet
Who is the tenant, and what's the lease?
ShopRite is the tenant, and ExchangeRight described the property as net-leased — meaning the tenant, not the Trust, carries the property-level operating costs.2 The sponsor also reported a contractual 10% rent increase on May 1, 2026, with further increases written into six five-year renewal options.2
How did it end?
No sale or other ending on record
ExchangeRight's March 3, 2026 annual statement confirms all of the sponsor's offerings continued to meet or exceed projections through 12/31/2025, and the Essential Income REIT's FY2025 10-K Exhibit 21.1 (filed 2026) does not list the Essential Grocery DST or its Uniondale, NY ShopRite property as an EIR subsidiary, indicating the trust still owns and operates the property [1][2].
The offering was a $29.2 million all-cash DST backed by a single 61,916-square-foot net-leased ShopRite property in Uniondale; the offering coverage stated that monthly distributions began at an annualized 4.09% and described 1031-exchange and 721-exchange exit options.
61,916 square feetSupporting evidence
How is it financed, and what does it pay?
The Trust holds the building free of mortgage debt: no lender, no loan maturity, no refinancing to negotiate. For a 1031 exchanger, that also means there is no replacement debt attached to the interest, which matters for anyone retiring a loan on the property they sold.
- Financing
- All cash. This offering reports no mortgage debt.
Who's behind it?
ExchangeRight is the sponsor named on the Trust's own offering materials and runs one of the larger net-lease DST platforms by program count.2 It announced on October 26, 2023 that investors had fully subscribed this offering.2 Its programs contemplate a 721 or "UPREIT" exit — the option to swap DST interests for operating-partnership units in a REIT instead of running another 1031 exchange.
- Sponsor
- ExchangeRight
- Legal Trust name
- ExchangeRight Essential Grocery DST
- May convert to a REIT
- Yes
- Offerings from this sponsor
- 23 active / 60 total offerings from ExchangeRight
Reported by the sponsor. Top1031 does not independently audit sponsor-reported figures.
What does the paperwork say?
The first Form D — the short federal notice an issuer files for a private placement — went in before any interests had sold; an amendment that September recorded a larger offering amount and a first sale dated August 1, 2022.4 A final amendment reported the offering complete. Interests were sold privately, without general advertising, to accredited investors.
- First Form D filedThe public offering record begins.
- Offering amount recordedA Form D amendment recorded offering and sales totals.
- Latest Form D filedThe most recent sponsor-filed checkpoint in this record.
- Filings on record
- 3
- How it may be offered
- Rule 506(b)Not advertised publicly. Offered through existing relationships.
- Source filing
- Read the filings on SEC EDGAR
A Form D is the notice a sponsor files when it starts raising money. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
DST interests are illiquid private securities. You may lose some or all of your investment. Distributions, tax treatment, and exit timing are not guaranteed. Review the current Private Placement Memorandum before investing.
Common questions
What happened to Net-Leased Essential Grocery DST?
Top1031 lists Net-Leased Essential Grocery DST as historical. It is no longer raising money.
Where does Top1031 get the data for Net-Leased Essential Grocery DST?
Top1031 builds this record from the sponsor’s own SEC filings and cited sponsor disclosures. Filings can lag what is happening now. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
Can I still invest in this Trust?
No. ExchangeRight announced on October 26, 2023 that investors had fully subscribed the Essential Grocery DST, and the Trust's final Form D amendment, filed January 29, 2024, reported nothing left available. It is a Historical offering — closed to new investors — and appears here as a public record, not an available deal.
Why do the SEC filings and the press release show different offering sizes?
They do not line up. The initial Form D filed July 25, 2022 recorded one total offering amount, the September 12, 2022 amendment recorded a larger total of $29.2 million, and the January 29, 2024 amendment reported a smaller total again. ExchangeRight's October 26, 2023 release described a $29.2 million offering as fully subscribed. Top1031 reports each figure by its filing date rather than reconciling them.
What does an all-cash DST mean for my exchange?
It means the Trust owns the property without a mortgage. There is no lender, no loan maturity, and no debt at the property level. It also means the interest carries no replacement debt, so an exchanger who is paying off a loan on the relinquished property generally has to replace that debt elsewhere or contribute additional cash. Your tax adviser can work through how that applies to you.
Who is the tenant, and how long is the lease?
ShopRite occupies the Uniondale building under a net lease, per ExchangeRight's October 26, 2023 announcement. That release described a 10% rent increase taking effect May 1, 2026 and escalations inside six five-year renewal options, but the sponsor materials reviewed do not state the base lease expiration date. The lease term itself would appear in the PPM, the private placement memorandum given to investors.
What is a 721 or UPREIT exit?
Under Section 721 of the tax code, an investor can contribute property or DST interests to a REIT's operating partnership in exchange for OP units, deferring tax without doing another 1031 exchange. ExchangeRight's programs are structured to allow that path. The tradeoff is that OP units are an interest in a portfolio company rather than in a specific building, and future 1031 exchanges out of them are generally no longer available.
Where exactly is the property?
ExchangeRight identified it as a 61,916-square-foot net-leased ShopRite in Uniondale, New York. The sponsor's public materials do not state a street address. Long Island Business News reported an August 2022 sale of a Uniondale ShopRite at 1121 Jerusalem Avenue for $24.75 million to ExchangeRight Real Estate, but that report names the sponsor entity, not this Trust, so the tie to this offering is unconfirmed.
Chapter 9ExchangeRight Investors Fully Subscribe All-Cash Essential Grocery DSTBlue Vault reported that the Essential Grocery DST was fully subscribed and described its Uniondale ShopRite asset, distributions, lease escalations, and 1031/721 exit options.