Blackstone Fully Subscribes First DST Under BXREX 1031 Exchange Program

Blackstone Real Estate has fully subscribed its first Delaware statutory trust offering, a $175.6 million deal under its Blackstone Real Estate Exchange program, or BXREX, the firm announced Sept. 21. The DST holds two Class A multifamily properties in the Sunbelt with more than 600 units.

Blackstone’s nontraded real estate investment trust, Blackstone Real Estate Income Trust Inc., or BREIT, identified the assets. Blackstone did not disclose the property names, their specific locations, or the total amount raised.

BXREX Portfolio I DST was offered under Rule 506(b) of Regulation D with a $1 million minimum investment. Blackstone Real Estate Exchange LLC is the sponsor, and Blackstone Securities Partners L.P., Blackstone’s affiliated broker-dealer, is the only firm listed to receive sales compensation.

“We are thrilled to have fully subscribed our first DST offering and to help our investors achieve their 1031 goals,” said Katie Keenan, global head of Blackstone’s Core+ real estate business and chief executive officer of BREIT.

BREIT launched the DST platform in fall 2025, along with two new share classes, Class L and Class L-2, aimed at ultra-high-net-worth and institutional accredited investors. Under the program, a property owner sells a property and reinvests the proceeds in beneficial interests in a DST as like-kind replacement property. After a holding period of at least two years, BREIT’s operating partnership has the option, but not the obligation, to buy the DST properties through a Section 721 exchange for operating partnership units or cash, according to Blackstone.

Second Offering in Market

Blackstone already has a second offering in the market. BXREX Portfolio II DST is seeking $187.3 million for two industrial properties in Pennsylvania and New Jersey, with a $500,000 minimum investment. It was the largest DST offering launched in August, according to Mountain Dell Consulting.

Large Sponsors Lead DST Fundraising

Blackstone joined a DST market led by large alternative asset managers that also sponsor nontraded REITs. Through August, Ares Real Estate Exchange led DST fundraising with $1.3 billion, or 20.3% of the market. Hines Real Estate Exchange followed with $590.6 million and Blue Owl Real Estate Exchange with $522.1 million, according to Mountain Dell.

DST equity fundraising totaled $6.48 billion through August, up more than 33% from $4.86 billion in the same period of 2025. Mountain Dell expects total 2026 DST equity fundraising to reach at least $10 billion, citing a typical fourth-quarter run-up.

In a quarterly update this summer, BREIT described BXREX as a way to “expand and diversify our capital-raising strategies.”

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