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Bluerock Value Exchange Fully Subscribes $54.9 Million DST Offering

Bluerock Value Exchange, a national sponsor of 1031 exchange and Delaware statutory trust investment programs, has fully subscribed BR Diversified Industrial Portfolio II, DST with $54.9 million in equity from third-party investors. The minimum investment accepted from outside investors was $100,000.

Bluerock reported more than $2.5 billion in past and current 1031 exchange programs as of February 2024.

This latest activity follows news that the sponsor fully subscribed BR Diversified Industrial Portfolio I DST and launched BR Diversified Industrial Portfolio III DST, its 36th individual DST program, earlier this year.

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 tenants, including large global distributers Amazon and FedEx.

Bluerock Value Exchange 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 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 Blue Value Exchange.

“Today’s infill warehouse and distribution properties have unparalleled demand tailwinds bolstered by e-commerce, U.S. 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.

Bluerock Value Exchange is a national sponsor of syndicated 1031 exchange offerings with a focus on 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.

Bluerock is an institutional alternative asset manager with more than $18 billion of acquired and managed assets. Headquartered in Manhattan with regional offices across the United States, 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.

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