Bluerock Value Exchange Fully Subscribes $31.6 Million DIP IV DST

Bluerock Value Exchange, a national sponsor of 1031 exchange and Delaware statutory trust investment programs announced it has fully subscribed BR Diversified Industrial Portfolio IV, DST. The DST, also known as DIP IV, raised $31.6 million in equity from third-party investors.

The unlevered DST offering includes a two state – South Carolina and Tennessee – three property, industrial sector portfolio comprised of approximately 200,000 square feet of combined warehouse and distribution properties which are 100% leased to four distinct mixed-use industrial tenants.

“We are pleased with the successful completion of our fourth diversified industrial portfolio DST representing approximately $210 million in tax-deferred 1031 exchange investments,” said Josh Hoffman, president of Bluerock Value Exchange. “We believe 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 IV seeks to provide investors with stable monthly cash flow pursuant to long-term 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, which are approximately 20% on average.

“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.

The DST program also provides investors with multiple options upon a future exit strategy event including 721 exchange, i.e., UPREIT, or subsequent cash-out / 1031 exchange optionality.

Earlier this year, according to AltsWire, Bluerock Value Exchange announced multiple special distributions to its investors totaling more than $1.5 million in supplemental rent across its current managed DST and 1031 exchange programs.

Bluerock Value Exchange is a national sponsor of syndicated 1031 exchange offerings with a focus on what it calls “premier exchange properties” that seek to deliver stable cash flows and potential for value creation. For two decades, Bluerock has structured 1031 exchanges of more than $2.7 billion in total property value and 13.5 million square feet of property.

Bluerock is an institutional alternative asset manager with more than $19 billion of acquired and managed assets headquartered in Manhattan with regional offices across the nation.

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