Bluerock Fully Subscribes $41.2M Sunbelt Industrial DST
Bluerock Value Exchange (BVEX), a unit of alternative asset manager Bluerock, announced it has fully subscribed BR Diversified Industrial Portfolio III, DST (DIP III) program, announced in February, with $41.2 million in equity from third-party investors.
The unleveraged offering includes a six-property industrial sector portfolio with locations in the Sunbelt featuring approximately 359,000 square feet of warehouse / distribution properties with nine distinct tenants.
“Most of the prestigious research firms forecast the industrial sector to generate the highest net operating income growth among all major real estate sectors through 2028, making it one of our highest conviction sectors for our investors,” said Josh Hoffman, president of BVEX.
DIP III seeks to provide investors with stable monthly cash flow from in-place, triple net leases to a diverse group of industrial tenants and the potential for capital appreciation due to high demand for industrial properties within highly sought-after infill locations, in addition to the ability to drive future rent growth with current rents below (approximately 30% on average) market rates.
The program also provides investors with multiple options upon a future exit strategy event including 721 exchange (UPREIT) or subsequent cash-out / 1031 exchange optionality.
Bluerock reported over $2.7 billion in past and current 1031 exchange programs as of October 2024. In October, BVEX launch BR Diversified Industrial Portfolio IV, DST (DIP IV), aiming to raise about $31.6 million. DIP IV is BVEX’s 37th individual DST offering, and fourth sequential industrial-focused DST program.
