ExchangeRight Raises $2.3M Through Private Offering of Class ER Shares

The real estate investment firm continues its growth strategy while navigating broader market risks.

May 06, 2025

ExchangeRight Secures $2.3 Million in Latest Equity Sale

On May 1, ExchangeRight Income Fund completed the sale of 79,917 Class ER common shares, generating $2.3 million in gross proceeds. The transaction is part of the firm’s broader $2.165 billion private placement initiative, which remains active and ongoing.

This latest sale reinforces ExchangeRight’s approach to long-term capital formation. Investors purchased the Class ER shares under Regulation D Rule 506(c), which allows companies to raise capital through private placements without registering the offering with the SEC. In this case, ExchangeRight worked within the framework of securities exemptions under Section 4(a)(2) , keeping the process streamlined while staying compliant. The sale involved $64,000 in commissions paid to intermediaries.

These funds are a piece of a larger strategy—fueling the company’s real estate investment pipeline and helping to support a portfolio that centers on essential service tenants. The firm is positioning itself to withstand economic shifts by focusing on sectors it deems stable, even in periods of broader market volatility.

Managing Risks While Scaling Up

But raising capital is just one part of the picture. Like any REIT, ExchangeRight has to manage risks tied to its underlying real estate. These include:

• Tenant defaults and lease turnover


• Exposure to specific tenant categories


• Environmental liabilities and natural disaster risks


• Market dynamics such as interest rate changes and credit fluctuations

Maintaining its REIT status remains a priority for ExchangeRight, and with that comes a set of compliance obligations and financial targets. Future share issuances, changes in regulation, or shifts in investor sentiment could all impact the value of its shares going forward.

ExchangeRight is still early in its life as a public REIT. As it builds on this foundation, the company continues to lean on private capital to advance its acquisition strategies, sustain distributions, and expand its presence in the real estate market. This latest raise adds momentum—and visibility—as the firm navigates a complex and competitive landscape.