Bluerock Value Exchange Unveils $60M All-Cash Industrial DST
Bluerock Value Exchange, or BVEX, a national sponsor of 1031 exchange and Delaware statutory trust investment programs, has launched BR Diversified Industrial Portfolio 7, DST. The firm is seeking to raise approximately $60 million from accredited investors for the all-cash DST offering, also known as DIP 7.
The launch marks BVEX’s 45th individual DST program and the seventh consecutive offering focused specifically on the industrial sector, reflecting the firm’s continued focus on the asset class.
DIP 7 consists of a five-property industrial portfolio spanning four states: Alabama, Florida, Missouri, and Virginia. Totaling approximately 550,000 square feet, the assets include a mix of manufacturing facilities, warehouse and distribution centers, and industrial outdoor storage. The portfolio is currently 100% leased to a group of investment-grade and credit-rated tenants under long-term, triple-net lease agreements.
By structuring the offering as an unlevered/all-cash DST, BVEX said it aims to provide a more conservative risk profile for 1031 exchange investors, eliminating the risks associated with debt while prioritizing capital preservation and income stability.
According to Josh Hoffman, president of Bluerock Value Exchange, the demand for industrial real estate remains robust, particularly in high-growth Sunbelt markets and key transportation corridors.
“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,” said Hoffman. “We believe we can best accomplish our investors’ goals of preserving capital, deliver[ing] stability of income, and generat[ing] high risk-adjusted returns over a moderate hold period through these types of diversified portfolios.”
A key component of the investment thesis for DIP 7 is the potential for future rent appreciation. Data from CoStar indicates that current in-place rents for the portfolio are, on average, 25% below market rates, which could provide upside as leases expire and reset to market levels.
With a 20-year track record, BVEX has structured 1031 exchanges totaling more than $3 billion in property value across 15.5 million square feet. Its parent company, Bluerock, manages over $20 billion in institutional alternative assets and is headquartered in Manhattan.
Earlier this year, BVEX launched BR Parkview Multifamily, DST. The company’s 44th individual DST program seeks to raise approximately $39.4 million from accredited investors and has a total value of approximately $78 million, inclusive of loan proceeds.
In December 2025, Bluerock Private Real Estate Fund, Bluerock’s flagship real estate fund formerly known as Bluerock Total Income+ Real Estate Fund, began trading on the New York Stock Exchange under the ticker symbol “BPRE.”
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