Bluerock Value Exchange Achieves Full Subscription of $41.2 Million in Industrial Portfolio

Bluerock Value Exchange Fully Subscribes $41.2 Million Diversified Industrial Portfolio III DST

On December 18, 2024, Bluerock Value Exchange (BVEX), a prominent player in 1031 exchange and Delaware Statutory Trust (DST) programs, announced the completion of their BR Diversified Industrial Portfolio III DST (DIP III) with a total of $41.2 million in equity secured from third-party investors. This significant milestone adds to Bluerock’s impressive track record, which now includes over $2.7 billion in previous and ongoing 1031 exchange projects as of October 2024.

The DIP III offering represents a fully unleveraged investment opportunity comprising a diversified portfolio of six industrial properties strategically located in the growing sunbelt area. These properties collectively encompass around 359,000 square feet of warehouse and distribution space and feature nine different tenants. This level of diversification is crucial, as it spreads risk and enhances the potential for stable returns.

One of the primary objectives of the DIP III program is to deliver consistent monthly cash flow through existing triple net leases with a variety of industrial tenants. Investors can anticipate potential capital appreciation driven by high demand for industrial assets located in desirable infill sites. Notably, the current rental rates in this portfolio average about 30% lower than market levels, suggesting substantial room for future rent increases, boosting investor returns.

Josh Hoffman, the President of Bluerock Value Exchange, expressed confidence in the success of this third diversified industrial DST, noting that it symbolizes more than $175 million in tax-deferred 1031 exchange investments. He stated, “We believe industrial properties are currently positioned to meet investors' goals for capital preservation, reliable cash flow, and significant appreciation potential.” Furthermore, industry research indicates that the industrial sector is forecasted to achieve the highest net operating income growth among all major real estate categories through 2028, solidifying its appeal in the investment landscape.

The structure of this investment program offers various exit strategy options for investors, including the possibility of a 721 exchange (UPREIT) or future cash-outs that comply with 1031 exchange requirements, providing flexibility for different investment strategies.

Bluerock Value Exchange stands as a national leader in the organization of syndicated 1031 exchange offerings, specifically focusing on Premier Exchange Properties™ that aim to generate stable cash flows while also creating value. To date, Bluerock has successfully completed over $2.7 billion in 1031 exchanges involving a total of 14 million square feet of real estate assets. By constantly striving to deliver exceptional investment opportunities, Bluerock aims to remain at the forefront of the real estate investment market.

About Bluerock: Bluerock is an institutional alternative asset manager with an impressive management portfolio exceeding $18 billion. Headquartered in Manhattan, Bluerock has cultivated a significant investment track record over the past 100 years. The firm’s leadership team has extensive experience in realizing value in both private and public investment platforms. More details about Bluerock’s offerings and investment philosophy can be found at their respective websites, bluerockexchange.com and bluerock.com.