Bluerock Value Exchange has launched BR Diversified Industrial Portfolio 8, DST, an all-cash offering seeking approximately $58.4 million from accredited investors.
The portfolio comprises five industrial properties across Florida, Illinois and Missouri, totaling about 460,000 rentable square feet. The assets include warehouse, distribution and industrial outdoor storage facilities.
The properties are fully occupied by large national tenants, including credit-rated companies, under long-term triple-net leases. The portfolio has a weighted-average remaining lease term of nearly 13 years. Bluerock said current rents are approximately 20% below prevailing market rates, potentially creating room for future rent growth.
The offering is unlevered, eliminating financing and interest-rate risks associated with property-level debt. It is intended for accredited investors, including those seeking replacement properties through Section 1031 tax-deferred exchanges.
The structure provides several potential exit routes, including a Section 721 exchange into an umbrella partnership real estate investment trust, a subsequent 1031 exchange or a cash sale.
“We continue to see strong demand from 1031 exchange investors seeking income-producing industrial portfolios in high-growth markets, particularly in an all-cash structure that eliminates leverage risk,” Bluerock Value Exchange President Josh Hoffman said.
DIP 8 is the firm’s 46th individual DST program and its eighth consecutive industrial-focused offering. Bluerock recently fully subscribed two earlier industrial programs, raising $71 million through DIP 6 and $60 million through DIP 7.
Manhattan-based Bluerock Value Exchange, a division of Bluerock, has structured more than $3 billion in 1031 exchange transactions encompassing 17 million square feet of commercial real estate.
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