Bluerock Fully Subscribes $71M Industrial DST Portfolio
Bluerock Value Exchange has fully subscribed its BR Diversified Industrial Portfolio 6, DST (DIP 6), raising $71 million in equity from individual investors.
The unlevered offering consists of a four-property portfolio spanning Florida, North Carolina and South Carolina, totaling approximately 500,000 square feet. The assets include critical manufacturing, warehouse and distribution facilities that are 100% leased to a diversified tenant base of investment-grade and credit-rated companies under long-term triple net leases.
“We believe the industrial sector is well-poised to deliver strong NOI, driven by long-term manufacturing and distribution tailwinds,” said Josh Hoffman, President of Bluerock Value Exchange. “We further believe these diversified portfolios are well suited to help investors preserve capital, generate stable income, and achieve attractive risk-adjusted returns over a moderate hold period.”
DIP 6 is structured to provide stable monthly cash flow alongside potential capital appreciation. The portfolio also offers embedded upside, with current rents estimated to be approximately 21% below prevailing market rates, creating opportunities for future rent and NOI growth.
The DST structure provides multiple exit pathways, including a potential 721 exchange (UPREIT), a subsequent 1031 exchange or a cash-out option, enhancing flexibility for investors seeking both income and long-term tax-efficient strategies.
The close of DIP 6 follows the recent launches of BR Diversified Industrial Portfolio 7, DST (DIP 7), a $60 million offering focused on industrial real estate across four states; the BR Parkview Multifamily, DST ($39.4 million), BR Diversified Industrial Portfolio V ($36.7 million), BR Churchill Downs (targeting $37.8 million), and BR Diversified Industrial Portfolio IV ($31.6 million).
Manhattan-based BVEX, a division of Bluerock, has structured more than $3 billion in 1031 exchange transactions spanning 15.7 million square feet of property.