Bluerock Value Exchange Launches $71M Industrial 1031 Exchange Offering
Bluerock Value Exchange, a national sponsor of 1031 exchange and Delaware statutory trust investment programs, announced the launch of its latest 1031 exchange/DST offering known as BR Diversified Industrial Portfolio 6, DST, or DIP 6.
The DST is seeking to raise approximately $71 million from accredited investors and represents Bluerock Value Exchange’s 43rd individual DST program and sixth sequential industrial-focused DST program.
According to Bluerock, DIP 6 represents an attractive investment opportunity in an already assembled diverse portfolio located in desirable high growth Sunbelt market locations.
The unlevered, all-cash DST offering comprises a four-property industrial sector portfolio in Florida, North Carolina, South Carolina. Its approximately 505,000 square feet of combined critical manufacturing, warehouse and distribution properties is fully leased to a combination of publicly traded and privately held global and large national tenants with in-place, long-term, triple net leases.
“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 strong rent and [net operating income] growth due to long-term manufacturing and distribution tailwinds driving demand within the sector.
DIP 6 seeks to provide investors with stable monthly cash flow and the potential for capital appreciation with properties well-positioned for additional rent growth and value creation as a result of the demand for industrial properties within high-growth markets and positioned along major transportation routes.
“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.
It’s been a busy month for Bluerock Value Exchange programs. Last month, it fully subscribed BR Diversified Industrial Portfolio V, DST, also known as DIP V, after raising $36.7 million in equity from individual investors. Earlier this summer, the company commenced BR Churchill Downs, DST, seeking to raise approximately $37.8 million from accredited investors.
In July of this year, parent company Bluerock proposed a shareholder liquidity event for its flagship real estate fund, the Bluerock Total Income+ Real Estate Fund, or TI+. Unanimously recommended by the fund’s board and now pending shareholder approval, the event would convert TI+ from a closed-end interval fund to a listed closed-end fund, traded on the New York Stock Exchange.
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 $2.8 billion in total property value and more than 14.9 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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