Bluerock Value Exchange Secures $60 Million for Industrial Property Portfolio

Bluerock Value Exchange (BVEX) has announced the successful subscription of its BR Diversified Industrial Portfolio 7, DST, securing $60 million in equity from individual investors. This marks the seventh consecutive fully subscribed diversified industrial portfolio for the company, bringing the total in this series to over $400 million in 1031 exchange investments.

The unlevered, all-cash portfolio consists of five industrial properties located in Alabama, Florida, Missouri, and Virginia, totaling approximately 550,000 rentable square feet. These properties are 100% leased to investment-grade and credit-rated tenants, including NVR, Inc. and BlueLinx Holdings, under long-term triple net leases. The acquisition price for the portfolio was reported to be more than $1.35 million below its combined appraised value.

BVEX highlighted the industrial sector's favorable long-term tailwinds in manufacturing and distribution, which are expected to drive strong net operating income growth. The company noted that current rents are approximately 25% below prevailing submarket rates, offering potential for future growth. The portfolio provides investors with a current annualized cash distribution rate of 4.80% on invested equity.

The investment structure offers investors three exit options at the end of the hold period, allowing for tax-deferred exchanges, cash redemptions, or taxable cash distributions, accommodating various investor tax and estate planning needs. Bluerock Value Exchange has sponsored over $3 billion in total property value through its 1031 exchange programs.