Blue Owl Real Estate Exchange V is a debt-free DST holding three single-tenant net-leased industrial manufacturing properties leased to subsidiaries of Magna International and Rheinmetall AG on ~20-year base terms. The Bowling Green Metalforming site carries a ground-lease and industrial-revenue-bond structure providing tax abatement, and the trust agreements prohibit permanent financing. The thesis is durable, long-duration credit-tenant net-lease income with an optional Section 721 rollover into the perpetual-life Blue Owl Real Estate Net Lease Trust.
; and two American Rheinmetall (Loc Performance Products) facilities, 1115 South Wayne Street, Saint Marys OH (~701,000 SF, 1939-1973 vintage) and 13505 North Haggerty Road, Plymouth MI (~289,000 SF, 2002), each leased to a subsidiary of Rheinmetall AG. 0% per annum (American Rheinmetall). The Magna site includes a ground-lease and industrial-revenue-bond structure providing tax abatement.
The properties are owned free and clear, with the trust agreements prohibiting permanent financing, and the master lease is guaranteed by Blue Owl's Operating Partnership subject to a net-worth standard. Thesis is durable, long-duration credit-tenant net-lease income with an optional Section 721 rollover into the non-listed, perpetual-life Blue Owl Real Estate Net Lease Trust.
The properties are held free and clear with no mortgage, eliminating refinancing, maturity, rate-cap, and lender-foreclosure risk and removing the equal-or-greater-debt replacement requirement for 1031 investors. The structural trade-off is the absence of positive leverage.
The portfolio is leased to subsidiaries of two substantial industrial credits: Bowling Green Metalforming, a wholly-owned unit of Magna International, a publicly traded global Tier-1 automotive supplier, and Loc Performance/American Rheinmetall, a subsidiary of Rheinmetall AG, a German defense and industrial group benefiting from the European defense-spending expansion. The Rheinmetall-linked defense exposure is a differentiated, counter-cyclical demand driver atypical of net-lease portfolios, though both leases sit with operating subsidiaries rather than the rated parents.
Both the Magna and American Rheinmetall properties carry approximately 20-year base lease terms, producing an exceptionally long weighted-average lease term that underpins durable contractual income and supports the perpetual-life UPREIT thesis. Escalators differ materially, 2.0% per annum for American Rheinmetall versus a below-market 1.25% per annum for Magna, the latter eroding real income over the multi-decade term.
The portfolio is owned free and clear, and the trust agreements affirmatively prohibit the trustee from placing permanent financing, eliminating refinancing, maturity, and interest-rate risk entirely and removing the equal-or-greater-debt replacement requirement for 1031 investors. The structural cost is the absence of positive leverage, which caps levered return and is the primary reason the going-in distribution sits in the high-4% range.
The FMV Option permits Blue Owl's Operating Partnership, at its sole discretion, to acquire investor interests for OP units in the non-listed, perpetual-life Blue Owl Real Estate Net Lease Trust after a two-year hold, offering a potential tax-deferred path into a large, diversified net-lease REIT platform. The exchange is into a non-traded, illiquid vehicle whose NAV, redemption terms, and exercise timing are sponsor-controlled, ceding investor control and price transparency.
The assets are large, special-purpose manufacturing facilities purpose-built for their incumbents, the Magna plant alone spanning ~1.35M SF on 134 acres, which makes them mission-critical to tenant operations and raises renewal probability, but also concentrates re-leasing and repurposing risk given limited alternative-use demand if a tenant vacates. The AR Ohio asset is of 1939-1973 vintage, and the Magna site carries ground-lease and industrial-revenue-bond complexity tied to its tax abatement.
The offering provides a long-duration (~20-year WALT) single-tenant net-lease industrial portfolio leased to subsidiaries of two substantial industrial credits, Magna International and Rheinmetall AG, with the defense-linked Rheinmetall exposure adding a differentiated, counter-cyclical demand tailwind. The structure is debt-free with leverage contractually prohibited, removing all refinancing and maturity risk, and the master lease is guaranteed by Blue Owl's Operating Partnership subject to a net-worth covenant. Distributions begin at 4.77% and step up to 6.01% over the 20-year forecast, and the optional Section 721 FMV Option offers a tax-deferred path into the large, diversified, perpetual-life Blue Owl net-lease REIT.
The properties are large, special-purpose manufacturing facilities with limited alternative-use demand and elevated re-leasing cost if a tenant vacates, and the AR Ohio asset is of 1939-1973 vintage. Both leases are with operating subsidiaries (Bowling Green Metalforming, Loc Performance) rather than the rated parents, and the only contractual credit backstop is Blue Owl's own Operating Partnership guaranty subject to a net-worth standard, concentrating credit support within the sponsor family. The Magna escalator is a below-market 1.25% per annum, eroding real income across a 20-year term, and the Magna site's ground-lease/industrial-revenue-bond structure adds title and tax-abatement complexity. The 721 consideration would be units in the non-listed, perpetual-life Blue Owl REIT, an illiquid vehicle with sponsor-controlled NAV and redemption gates, exercisable only at the Operating Partnership's discretion. Going-in cash yield is modest at 4.77% against a 7.50% upfront load plus ongoing servicing and management fees and a disposition fee.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
Blue Owl V is a debt-free, long-duration credit-tenant net-lease industrial vehicle engineered as a feeder into Blue Owl's perpetual-life net-lease REIT via an optional Section 721 UPREIT. Return is almost entirely contractual and front-loaded by 20-year leases with modest 1.25%-2.0% escalators, so the investment is fundamentally an income-and-tax-deferral play rather than a total-return or appreciation strategy, consistent with its stated capital-preservation objective. The two credits are substantial but exposure runs through operating subsidiaries backed only by the sponsor's Operating Partnership guaranty, and the assets' special-purpose nature concentrates risk in tenant retention over a multi-decade horizon. The defining feature is the perpetual UPREIT optionality: rather than a defined sale, the likely path is conversion into non-listed Blue Owl REIT OP units, moving investors from a discrete, transparent net-lease portfolio into a sponsor-managed, illiquid NAV REIT, attractive for tax-deferral continuity and diversification but ceding control, liquidity, and valuation transparency. The 4.77% going-in distribution is well-supported by in-place contractual rent; the principal sensitivities are long-horizon tenant retention at special-purpose assets and the terms and timing of the eventual 721 conversion.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
| Metric | This Offering | Market Avg. | Assessment |
|---|---|---|---|
| Avg. Income | 4.96% | 5.39% | Meets Average |
| Income Growth | 7.97% | 13.50% | Below Average |
| Peak Income | 5.15% | 5.84% | Below Average |
Blue Owl
Blue Owl Capital is a roughly $273 billion alternatives manager whose net-lease pedigree—anchored by the Oak Street platform it absorbed—feeds its DST/1031 vehicle, Blue Owl Real Estate Exchange (OREX). The strategy is purpose-built around triple-net, sale-leaseback assets leased to creditworthy corporate tenants, a cash-flow-stable profile well suited to exchange investors seeking predictability. With a permanent-capital orientation and a diversified credit-and-real-assets platform behind it, OREX brings institutional sourcing to a niche that rewards tenant credit discipline.
Learn More About Blue Owl →Documents for this offering. Available to signed-in investors.
Securities offered through Aurora Securities, Inc. (CRD #46147 / SEC #8-51322), member FINRA / SIPC; Baker 1031 Investments, LLC is independent of Aurora Securities, Inc. and is not a registered broker-dealer or investment adviser. This is not an offer to sell or a solicitation of an offer to buy any security; any offer is made solely by the confidential private placement memorandum (PPM), which qualifies all information herein in its entirety. Delaware Statutory Trust interests are speculative, illiquid securities offered under Rule 506(c) of Regulation D and sold only to investors whose accredited-investor status has been verified; offering documents and subscription materials are provided only after that verification. They involve substantial risk, including possible loss of the entire investment.
Distributions, yields, the cap-rate equivalent, DSCR, occupancy, and benchmark figures are sponsor estimates or projections, are not guaranteed, and may differ materially from actual results. Any tax-adjusted yield assumes a 40% effective rate for non-1031 cash investors and is not tax advice. No tax, legal, or investment advice is provided — consult your own CPA and attorney. Past performance does not guarantee future results.