Bluerock Value Exchange Fully Subscribes $36.7M Diversified Industrial Portfolio V, DST
Bluerock Value Exchange (BVEX) announced that it has fully subscribed its BR Diversified Industrial Portfolio V, DST (DIP V), raising $36.7 million in equity from individual investors. The all-cash offering is comprised of two industrial properties across North and South Carolina, totaling approximately 255,000 square feet of manufacturing, warehouse, and outdoor storage facilities. Both properties are 100% leased to two publicly traded, credit-rated industrial tenants.
According to BVEX President Josh Hoffman, the success of DIP V underscores growing investor appetite for industrial real estate. “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,” Hoffman said. He added that the industrial sector is positioned for strong NOI growth, supported by long-term manufacturing and distribution demand.
The portfolio seeks to deliver stable monthly cash flow via long-term triple net leases, while also providing the potential for capital appreciation. Current rents are estimated to be 20% below market rates, giving investors exposure to future upside as leases roll and market conditions evolve. Additionally, DIP V offers investors multiple exit strategies, including a 721 exchange (UPREIT), subsequent 1031 exchange, or a cash-out option.
The completion of DIP V follows a string of successful offerings from BVEX. In June, the firm launched BR Churchill Downs, DST, targeting $37.8 million in equity. That same month, it completed fundraising for BR Diversified Industrial Portfolio IV, DST (DIP IV), securing $31.6 million.
Earlier this year, BVEX announced a targeted capital raise of about $36.7 million for its BR Diversified Industrial Portfolio V, DST, and previously fully subscribed its BR Diversified Industrial Portfolio III, DST (DIP III) program in December 2024, announced in February, with $41.2 million in equity from third-party investors.
Based in Manhattan, BVEX—a division of alternative investment manager Bluerock—has structured more than $2.8 billion in 1031 exchange transactions spanning 14.9 million square feet of commercial and multifamily real estate nationwide.