ExchangeRight Real Estate paid $94.8 million — $126.48 per square foot — for a 749,550-square-foot Amazon-leased industrial property at 9800 217th St. West in Lakeville, Minn., roughly 29 miles south of Minneapolis.
ExchangeRight is a DST sponsor whose franchise is 1031-exchange investors and necessity-based net lease. In August 2026 it separately fully subscribed a $90.67 million Net-Leased Portfolio 73 DST, carrying a current distribution rate of 5.00% and structured for potential future acquisition by its Essential Income REIT, and a $26.95 million all-cash 19 DST.
The DST product exists because exchange investors must identify replacement property within 45 days and close within 180. That deadline is the sponsor's real customer. Necessity retail solves it with granular, diversifiable, investment-grade credit spread across dozens of small assets.
One 749,550-square-foot building leased to one tenant solves the deadline differently. It delivers scale immediately, at a basis well below current replacement cost for Class A bulk in most Midwest markets, with a credit most investors will accept without reading the lease. What it does not deliver is granularity. Renewal risk, rollover cost and re-letting time all arrive on a single date.
The basis is the defense. At $126.48 per square foot, the downside case is releasing the box, not repricing the land.
Implications. Watch whether the asset lands in a syndicated DST or is held for the Essential Income REIT — that determines whether exchange investors or a permanent vehicle carries the single-tenant rollover. For 1031 investors: net lease is not a risk category. Tenant count is.
Key Takeaways
- A 45-day deadline will make an investor accept concentration they would never underwrite with a year to think about it.
- Forty small boxes and one giant box are not the same trade, even at the same dollar amount.
- A below-replacement-cost basis turns the downside case from repricing land into releasing a building.
Commercial Real Estate Direct — Amazon-Leased Industrial Property Near Minneapolis Sells for $94.8Mln, Aug 25 2026, citing Minneapolis/St. Paul Business Journal · ExchangeRight Real Estate — Net-Leased Portfolio 73 DST and All-Cash 19 DST subscription announcements, Aug 2026
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