Bluerock Value Exchange Fully Subscribes $60 Million Industrial DST
Bluerock Value Exchange has fully subscribed BR Diversified Industrial Portfolio 7 DST, or DIP 7, raising $60 million in equity from individual investors. The company said in a statement that the close brings its diversified industrial series to more than $400 million in tax-deferred 1031 exchange investments.
The New York-based sponsor, which has sponsored 1031 exchange and Delaware statutory trust programs for 20 years, said DIP 7 is the seventh industrial portfolio in a row that it has fully subscribed. Bluerock also said its past and current 1031 exchange programs total more than $3 billion.
“Investor appetite for well-located, net-leased industrial shows no sign of cooling,” said Josh Hoffman, president of Bluerock Value Exchange. “We believe the industrial sector is well-poised to deliver strong [net operating income] growth, driven by long-term manufacturing and distribution tailwinds.”
The close comes seven months after AltsWire reported DIP 7’s launch in February, when it was Bluerock’s 45th DST program. Bluerock fully subscribed the $41.2 million DIP III in December 2024 and the $31.6 million DIP IV in June 2025. It then closed the $36.7 million DIP V that August and the $71 million DIP 6 in April, the largest raise in the series so far. The sponsor has already moved to its next offering: in August it launched the $58.4 million DIP 8, five properties in Florida, Illinois, and Missouri that Bluerock said carry the same 4.8% distribution rate as DIP 7.
The DIP 7 offering is unlevered and all cash. It holds five industrial properties in Alabama, Florida, Missouri, and Virginia, totaling about 550,000 rentable square feet of manufacturing, warehouse and distribution, and industrial outdoor storage space.
All five properties are 100% leased under long-term triple-net leases, with a weighted average lease term of nearly 12 years. Tenants include homebuilder NVR Inc., rated BBB+ by S&P, and building products distributor BlueLinx Holdings, rated B+. Bluerock said it bought the portfolio for more than $1.35 million below its combined appraised value.
According to the company, the current annualized cash distribution rate to the trust is 4.8%. That rate reflects base and additional rent under the master lease, minus operating expenses and fees. The company said the figure does not directly represent investor return and does not guarantee future distributions.
Bluerock said in-place rents average about 25% below prevailing submarket rates, which it sees as room for future rent and NOI growth. By comparison, Bluerock reported in-place rents 30% below market for DIP III and 21% below market for DIP 6.
The sponsor cited Green Street projections from December 2025 that industrial will post 4.1% annualized NOI growth from 2026 through 2029, the highest of any major commercial real estate sector.
When the hold period ends, Bluerock said investors will have three exit options: contribute their interests to the operating partnership of an umbrella partnership real estate investment trust, or UPREIT, through a tax-deferred 721 exchange; redeem for cash and complete a new 1031 exchange; or take cash in a taxable sale.
“We further believe these diversified portfolios are well suited to help investors preserve capital, generate stable income, and achieve attractive risk-adjusted returns over a moderate hold period,” Hoffman said.
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