Bluerock Value Exchange Fully Subscribes $36.7M Industrial DST
Bluerock Value Exchange, a national sponsor of 1031 exchange and Delaware statutory trust investment programs, has fully subscribed BR Diversified Industrial Portfolio V, DST, also known as DIP V, after raising $36.7 million in equity from individual investors.
“We are pleased with the successful completion of our fifth diversified industrial portfolio DST representing more than $246 million in tax-deferred 1031 exchange investments,” said Josh Hoffman, president of Bluerock Value Exchange. “We believe the industrial sector is poised to deliver strong [net operating income] growth due to long-term manufacturing and distribution tailwinds driving demand within the sector.”
The unlevered (all-cash) DST offering, which launched in March of this year, includes a two-state (North and South Carolina), two-property industrial sector portfolio comprised of approximately 255,000 square feet of combined manufacturing, warehouse, and outdoor storage and distribution properties which are 100% leased to two credit-rated, publicly traded industrial tenants.
“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.
DIP V 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, i.e., approximately 20% on average.
According to the company, the DST program also provides investors with multiple options upon a future exit strategy event including 721 exchange, or UPREIT, or subsequent 1031 exchange/cash out optionality.
With a 20-year track record, Bluerock Value Exchange is a national sponsor of syndicated 1031-exchange offerings with a focus on “Premier Exchange Properties™” that seek to deliver stable cash flows and potential for value creation. Bluerock has structured 1031 exchanges of more than $2.8 billion in total property value and 14.9 million square feet of property.
Earlier this summer, the company launched BR Churchill Downs, DST. It sought to raise approximately $37.8 million from accredited investors and represented Bluerock Value Exchange’s 42nd individual DST program.
Bluerock Value Exchange also announced it had 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.
Bluerock is an alternative asset manager with more than $19 billion of acquired and managed assets, headquartered in Manhattan with regional offices across the country.
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