Bluerock Value Exchange unveils $71mn BR Diversified Industrial Portfolio 6 DST targeting high-growth Sunbelt markets

Bluerock Value Exchange (BVEX), a long-standing national sponsor of Delaware Statutory Trust (DST) and 1031 exchange programs, has announced the launch of BR Diversified Industrial Portfolio 6 DST (DIP 6), a new industrial-focused offering seeking to raise $71 million from accredited investors. This marks the firm’s 43rd DST program and the sixth in its industrial series, further cementing its reputation as a key player in alternative real estate investment strategies.

The unlevered DST portfolio spans approximately 505,000 square feet across four industrial properties in Florida, North Carolina, and South Carolina. These assets, which include critical manufacturing, warehouse, and distribution facilities, are fully leased to a mix of investment-grade, credit-rated, publicly traded, and privately held tenants. With long-term triple net leases in place, the offering is positioned to deliver predictable income streams, capital preservation, and risk-adjusted returns.

Why is Bluerock Value Exchange expanding industrial-focused DST programs amid growing investor appetite?

Bluerock Value Exchange has steadily expanded its industrial DST footprint over the past decade, aligning with one of the strongest-performing real estate sectors in the U.S. Industrial real estate has benefited from macroeconomic tailwinds such as e-commerce growth, supply chain restructuring, and increased nearshoring of manufacturing. According to CBRE, U.S. industrial vacancy rates have hovered near historic lows over the last five years, while rental growth in high-demand corridors has outpaced inflation.

Josh Hoffman, President of BVEX, explained that 1031 exchange investors continue to favor conservative, all-cash structures in sectors resilient to cyclical downturns. He emphasized that the industrial sector’s fundamentals—long-term tenant demand, distribution growth, and strong rent prospects—make it a natural fit for investors seeking both capital stability and moderate appreciation potential.

Unlike leveraged offerings that amplify both returns and risks, DIP 6 is structured as an unlevered product, appealing to investors prioritizing stability. This design provides insulation from interest rate volatility, which has become a critical consideration as the Federal Reserve maintains higher-for-longer rate policies.

How does the new diversified industrial portfolio position itself against rising rent growth and capital appreciation trends?

Bluerock’s DIP 6 portfolio offers exposure to industrial assets strategically located along major transportation arteries in the Sunbelt, an area that has outperformed in terms of population growth, logistics demand, and business relocations. With leases currently averaging 21% below market rates, based on Costar data, the properties are well-positioned for rent escalations and value appreciation during the hold period.

BVEX has indicated that the properties’ tenants include both global and national corporations with strong credit profiles. This tenant mix enhances income stability, particularly important in an environment where smaller operators may face financial strain from rising costs and shifting consumer demand. By locking in long-term triple net leases, the trust transfers most property-level expenses to tenants, thereby reducing variability in net operating income.

This structure not only ensures monthly cash flow but also supports potential capital appreciation as industrial rental rates in the Sunbelt continue to trend upward. In recent years, Florida, North Carolina, and South Carolina have ranked among the top industrial markets for absorption and rent growth, fueled by infrastructure investments, port expansions, and favorable demographic trends.

What broader industry dynamics are shaping demand for industrial DST offerings like DIP 6?

The launch of DIP 6 underscores how investor appetite for 1031 exchange and DST products is shifting toward industrial real estate as a hedge against economic uncertainty. Historically, office and retail dominated real estate investment portfolios, but post-pandemic dynamics have redefined sector priorities. With hybrid work weighing on office demand and e-commerce disrupting brick-and-mortar retail, industrial assets have emerged as the favored alternative.

DST structures allow accredited investors to pool resources into institutional-quality assets while deferring capital gains taxes via 1031 exchanges. Over the past 20 years, Bluerock Value Exchange has specialized in curating diversified portfolios that balance stability and growth potential. Analysts note that the firm’s ability to source properties below replacement cost and in growth corridors enhances long-term return prospects.

The industrial sector’s resilience also stems from structural supply chain changes. U.S. companies are increasingly re-shoring or near-shoring manufacturing, while consumers demand faster delivery times. These shifts require greater distribution capacity and localized warehouse infrastructure. Sunbelt markets, with their access to ports, highways, and growing labor pools, are natural beneficiaries.

How might institutional sentiment and investor flows shape the success of Bluerock’s DIP 6 launch?

While Bluerock Value Exchange is privately held and does not trade on public markets, the industrial DST space reflects broader institutional sentiment. Major publicly traded industrial REITs, such as Prologis (NYSE: PLD), have seen their stock valuations climb in recent years, underpinned by rising rents and consistent demand. Prologis, for example, has reported average same-store net operating income growth of over 7% annually since 2020, setting a benchmark for industrial performance.

Investor flows into DST programs are increasingly viewed as a retail counterpart to institutional allocations in REITs and private equity funds. As institutional investors continue to increase their allocations to industrial real estate, accredited investors participating through DSTs are effectively following similar themes at a smaller scale.

Market sentiment remains constructive, though tempered by interest rate policy. While REIT valuations have recently experienced pressure from higher borrowing costs, the unlevered structure of DIP 6 offers a defensive shield, making it attractive to risk-averse investors seeking income and tax-deferral benefits.

How could Bluerock Value Exchange’s industrial DST pipeline evolve as demand continues?

Given the performance of its previous five industrial DST programs, Bluerock is likely to continue scaling its industrial platform. Analysts suggest that future offerings could expand beyond the Carolinas and Florida into other Sunbelt logistics hubs such as Texas and Georgia, where industrial demand remains robust. The firm’s ability to source properties leased at below-market rents provides upside potential that resonates with 1031 investors aiming for both income stability and appreciation.

The momentum in the industrial DST sector also suggests further innovation in portfolio structuring. Some competitors are experimenting with hybrid portfolios combining industrial with multifamily or self-storage assets, both of which have shown resilience. Bluerock’s continued focus on industrial-only portfolios signals confidence in the sector’s long-term fundamentals.

As industrial real estate remains a magnet for capital flows, DIP 6 is positioned to appeal to investors who want exposure to institutional-grade assets without the complexities of leverage or active management.