BR Diversified Industrial Portfolio V, DST
BR Diversified Industrial Portfolio V, DST is a 100% leased portfolio of two industrial buildings located in the Sunbelt states of NC and SC. In addition to the buildings, both properties have expansive industrial outdoor storage areas. The investment seeks to provide investors with stable monthly cash flow and the potential for capital appreciation.
Eligibility1031 Exchange Only
Minimum Investment$100,000
Estimated Hold Period7 to 10 Years
Investment TypeEquity
Offering Loan-to-Value0.0%
721 TypeOptional
- Creditworthy Tenants: NVR (BBB+) and Builders FirstSource (BB-) are both credit-rated, publicly traded companies with $20+ billion market caps.
Well-Located Assets with Strong Market Fundamentals: The properties are situated in high-demand Sunbelt markets with access to exceptional distribution routes providing connectivity to major population centers. NVR’s property in Fayetteville is surrounded by global corporations and distribution companies such as FedEx, Amazon, Pepsi, and Soffe, while Builders FirstSource’s submarket has exhibited a five-year average vacancy of 3.1%. (CoStar)
Potential Value Creation: With Builders FirstSource’s current lease + extension ending in Year 8 of the hold period, Bluerock projects Builders FirstSource (or a new tenant) will resign at double the in-place rent to align with current market rental rates.
Robust Industrial Sector Fundamentals: Despite heightened demand, new industrial starts are down creating a positive supply-demand environment. The industrial sector is forecasted to have the highest NOI growth (5.1% annualized) among major commercial real estate sectors through 2028. (Green Street)
Highly Coveted Industrial Outdoor Storage: The Properties provide their tenants with industrial outdoor storage, a highly sought-after niche property type defined as industrial properties with a large outdoor component, used for storage, heavy industrial use, or truck and vehicle parking. Industrial outdoor storage is difficult to find since municipalities are hesitant to approve the projects and zoning classifications need to be aligned to allow for the space. The lack of supply continues to lead to large rental increases within this sector.
Debt-Free Offering: The DST is an all-cash, debt-free offering eliminating the risk of lender foreclosure and providing exit strategy flexibility.
