Bluerock Raises $60M for Fully Subscribed Industrial DST Portfolio
Bluerock Value Exchange has fully subscribed BR Diversified Industrial Portfolio 7, DST, raising $60 million in equity from individual investors. The closing brings its diversified industrial portfolio series to over $400 million.
The unlevered portfolio contains five properties totaling about 550,000 rentable square feet in Alabama, Florida, Missouri and Virginia. They include manufacturing, warehouse and distribution facilities and industrial outdoor storage. All are leased under long-term triple-net agreements, with a weighted average remaining lease term of nearly 12 years. Tenants include homebuilder NVR and building-products distributor BlueLinx.
Bluerock said the properties were purchased for more than $1.35 million below their combined appraised value. It reported a current annualized 4.8% cash distribution rate to the trust, based on rent after specified expenses and fees.
At the end of the holding period, Bluerock says investors may pursue an exchange into a real estate investment trust operating partnership under Section 721, seek another property exchange under Section 1031 or receive taxable cash proceeds.
“We believe the industrial sector is well-poised to deliver strong NOI growth, driven by long-term manufacturing and distribution tailwinds,” said Josh Hoffman, Bluerock Value Exchange’s president.
The closing follows Bluerock’s $71 million sixth industrial DST.