ERP 1031 Launches $36.15M DST Offering of Permian Basin Assets
ERP 1031 LLC, a specialized real estate investment firm also known as ERP, announced the full subscription of its third Delaware statutory trust and the immediate launch of a fourth offering.
ERP 1031 Industrial Portfolio III DST, which made its first sale in August 2025, closed after raising $29.65 million in equity from accredited investors. Building on this momentum, ERP launched ERP 1031 Industrial Portfolio IV DST, which seeks to raise $36.15 million in equity.
ERP says its strategy focuses exclusively on acquiring and operating institutional-quality, net-lease industrial facilities that serve as critical infrastructure for the energy industry. The new IV DST portfolio is comprised of four single-tenant, triple-net-lease industrial properties serving the energy industry in the Permian Basin, a region the firm identifies as a “Tier 1” logistical position and where it has placed emphasis since 2007.
“When we enter a market, our objective is clear: to build a real estate position that is strategic, difficult to replicate, and enduring in value,” said William A. Meyer II, founder and president of ERP. “The successful close of DST III and the launch of DST IV underscore continued investor confidence in our strategy and our on-the-ground expertise.”
ERP purchased the portfolio IV DST properties for $44 million. The properties have an initial aggregate loan-to-value ratio of approximately 29.5% based on the aggregate purchase price of the properties, 25.2% based on the appraisal value, and 26.4% based on the maximum offering amount.
The company said its investment rationale is anchored by the Permian Basin’s status as one of the most prolific energy-producing regions in the world. Spanning West Texas and southeastern New Mexico, the basin’s production levels consistently rank among the highest globally. ERP’s aggregate presence in the DST marketplace spans four offerings comprising 65 industrial facilities. As of Dec. 31, 2025, the company’s DST portfolio was 96% occupied.
According to data from the U.S. Energy Information Administration, the Permian Basin is expected to produce 6.6 million barrels of oil per day in 2026. To put these production levels into perspective, if the Permian Basin were a country, it would rank as the third-largest producer globally, behind only Saudi Arabia and Russia.
ERP’s investment approach emphasizes local operational expertise, strategic site selection along major transportation and logistics corridors, and a focus on properties that serve energy-related businesses. The company said that the closing of DST III and launch of DST IV further strengthens its position as a strategic owner and operator of industrial real estate within the energy asset class.
Founded and headquartered in Midland, Texas, ERP is a real estate investment firm focused on acquiring cash-flowing, net-lease industrial properties. ERP specializes in markets that it believes offer long-term economic growth, first-mover advantages, and pricing characteristics that may be difficult to replicate.
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