Bluerock Value Exchange, a national sponsor of 1031 exchange and Delaware statutory trust investment programs, has launched its latest 1031 exchange DST offering known as BR Diversified Industrial Portfolio V, DST, which is seeking to raise approximately $36.7 million from accredited investors.
BR Diversified Industrial Portfolio V, DST, i.e., DIP V, represents Bluerock Value Exchange’s 41st individual DST program, and fifth sequential industrial-focused DST program. The company has structured 1031 exchanges of more than $2.8 billion in total property value and 14 million square feet of property.
This latest unlevered, all-cash DST offering includes a two-state – North Carolina and South Carolina – two-property industrial sector portfolio comprised of approximately 255,000 square feet of combined manufacturing, warehouse, highly coveted outdoor storage, and distribution properties. Bluerock reported that the properties are 100% leased to two credit rated, publicly traded industrial tenants.
According to Bluerock Value Exchange, DIP V represents an attractive investment opportunity in an already assembled diverse portfolio located in desirable high growth Sunbelt market locations.
“We continue to see strong demand from 1031 exchange investors for industrial sector portfolios in high growth markets in a conservative all-cash structure,” said Josh Hoffman, president of Bluerock Value Exchange. “The industrial sector is poised to deliver best-in-class rent and [net operating income] growth amongst all major commercial real estate sectors due to long-term manufacturing and distribution tailwinds driving demand within the sector.”
DIP V seeks to provide investors with stable monthly cash flow pursuant to triple net leases and the potential for capital appreciation due to heightened demand for industrial properties coupled with the ability to drive future rent and NOI growth with current rents substantially below market rates.
“We believe we can best accomplish our investor’s goals of preserving capital, deliver stability of income, and generate high risk-adjusted returns over a moderate hold period through these types of diversified portfolios,” added Hoffman.
In December 2024, the sponsor fully subscribed BR Diversified Industrial Portfolio III, DST program with $41.2 million in equity from third-party investors. The unleveraged offering, also known as DIP III, was launched in February 2024 as a six-property industrial sector portfolio with nine distinct tenants in the Sunbelt.
Bluerock is an alternative asset manager with more than $19 billion of acquired and managed assets headquartered in Manhattan with regional offices across the United States.
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