Bluerock Value Exchange Fully Subscribes Third Industrial Portfolio DST for $41.2 Million

Bluerock Value Exchange, a national sponsor of 1031 exchange and Delaware statutory trust investment programs, has fully subscribed BR Diversified Industrial Portfolio III, DST program with $41.2 million in equity from third-party investors.

Bluerock Value Exchange reported more than $2.7 billion in past and current 1031 exchange programs and 14 million square feet of property as of October 2024.

The unleveraged offering, also known as DIP III, was launched in February and includes a highly diverse, six-property industrial sector portfolio with locations in the Sunbelt featuring approximately 359,000 square feet of warehouse/distribution properties with nine distinct tenants.

“We are pleased with the successful completion of our third diversified industrial portfolio DST representing more than $175 million in tax-deferred 1031 exchange investment. We believe industrial properties are best poised to deliver on investor’s objectives of capital preservation, stable cash flow, and high appreciation potential”, said Josh Hoffman, president of Bluerock Value Exchange.

Like BR Diversified Industrial Portfolio II, DST, which Bluerock Value Exchange fully subscribed with $54.9 million in equity from third-party investors in April 2024, DIP III 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 growth with current rents substantially below (approximately 30% on average) market rates. The company said the program also provides investors with multiple options upon a future exit strategy event including 721 exchange, i.e., UPREIT, or subsequent cash-out/1031 exchange optionality.

“Most of the prestigious research firms forecast the industrial sector to generate the highest net operating income growth among all major real estate sectors through 2028, making it one of our highest conviction sectors for our investors,” added Hoffman.

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

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