Bluerock Value Exchange (BVEX), a long-time, national sponsor of 1031 exchange and Delaware Statutory Trust investment (DST) programs, announced it has fully subscribed BR Diversified Industrial Portfolio II, DST (DIP II) program with $54.9 million in equity from third-party investors. Bluerock reported more than $2.5 billion in past and current 1031 exchange programs as of February 2024.
The unleveraged DIP II DST offering includes a three-property industrial sector portfolio with locations in the sunbelt featuring approximately 424,000 square feet of warehouse / distribution properties with five distinct tenants, including large global distributers Amazon and FedEx.
BVEX believes DIP II represents an attractive investment opportunity in an already assembled diverse portfolio of industrial properties located in desirable high growth North Carolina markets. DIP II seeks to provide investors with stable monthly cash flow pursuant to 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 coupled with the ability to drive future rent and net operating income (NOI) growth with current rents substantially below (approximately 23% 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.
“We believe industrial properties in major distribution corridors are best poised to deliver on investor’s objectives of capital preservation, stable cash flow, and high appreciation potential,” said Josh Hoffman, President of BVEX. “Today’s infill warehouse and distribution properties have unparalleled demand tailwinds bolstered by e-commerce, US manufacturing, and consumer distribution needs, and is forecasted to generate the highest rent growth among all major real estate sectors through 2028, making it our highest conviction sector,” added Hoffman.
About Bluerock Value Exchange
Bluerock Value Exchange is a national sponsor of syndicated 1031-exchange offerings with a focus on Premier Exchange Properties™ that seek to deliver stable cash flows and potential for value creation. Bluerock has structured 1031 exchanges of more than $2.5 billion in total property value and 13 million square feet of property. Additional information can be found at bluerockexchange.com.
About Bluerock
Bluerock is a leading institutional alternative asset manager with more than $18 billion of acquired and managed assets headquartered in Manhattan with regional offices across the U.S. Bluerock principals have a collective 100+ years of investing experience with more than $120 billion real estate and capital markets experience and have helped launch leading private and public company platforms. Additional information can be found at bluerock.com.
