ExchangeRight Raises $1 Million in Private Share Offering

The firm continues its private placement strategy, selling Class ER shares under an ongoing $2.165 billion offering.

March 07, 2025

Private Placement Expands Capital-Raising Efforts

ExchangeRight Income Fund has secured approximately $1 million through its latest private placement transaction, selling 36,056 Class ER common shares on March 1, 2025. The sale is part of the company’s broader initiative to raise up to $2.165 billion through multiple share classes, targeting accredited investors under Regulation D exemptions.

The firm operates as ExchangeRight Essential Income REIT, focusing on real estate assets designed to hold value through economic shifts. By structuring its offerings as private placements, ExchangeRight provides investment opportunities outside public markets while maintaining access to capital. The latest share sale resulted in $61,000 in commissions, reflecting the costs associated with bringing new investors into the fund.

Strategic Focus and Market Considerations

ExchangeRight’s investment strategy prioritizes real estate tenants it assesses as creditworthy and operationally essential. However, like all real estate investments, risks remain. The company must navigate market fluctuations, tenant defaults, and regulatory requirements tied to its real estate investment trust (REIT) status. Interest rate movements and broader economic conditions will also play a role in shaping future performance.

The private placement model allows ExchangeRight to build its portfolio while offering investors access to alternative real estate investments. While these shares are not publicly traded, the firm positions its strategy as one focused on stability and income generation. Investors will be watching closely to see how ExchangeRight continues executing its capital-raising efforts and managing its expanding real estate portfolio in the months ahead.