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BR Diversified Industrial Portfolio 7, DST
Available • Bluerock
Investment Overview
BR Diversified Industrial Portfolio 7, DST (the “Trust”) represents an attractive investment opportunity in a diversified portfolio of industrial properties and tenants. The portfolio features five mission-critical and strategic locations for the investment-grade and credit-rated, publicly traded and privately held, global and large national and regional tenants. The portfolio is positioned for significant value creation as a result of the high projected demand for industrial properties in desirable locations within high growth markets and positioned along major transportation arterials and with rents substantially below (25% on average) current submarket rates. The Properties are located in some of the strongest industrial corridors and in Sunbelt locations with projected cumulative rent growth of approximately 13% through 2029. The Trust aims to provide investors with stable monthly cash flow and the potential for capital appreciation.
Investment Highlights
- Portfolio purchased for more than $1,350,000 below appraised value.
- Strategic assembly of four high-quality, diverse industrial tenants and five properties featuring an attractive combination of investment-grade and credit-rated, publicly traded and privately held, global and large national tenants with in-place triple net leases. Geographically diverse industrial property portfolio in high-demand Sunbelt and industrial corridor regions with access to exceptional distribution routes and connectivity to major population centers.
- Potential for future investment appreciation with contractual annual lease rate escalations, rents substantially below (25% on average) current submarket rates, and projected cumulative market rent growth of 13% through 2029.
- Portfolio has in place, long-term absolute and triple-net leases with a weighted average lease term of nearly 12 years, providing for durable cash flows during the hold period.
- Unique competitive advantage with Corporate Property and Quality Property possessing highly coveted industrial outdoor storage, providing an anticipated scarcity demand premium.
Quick Facts
Sponsor
Bluerock
Status
Available
Property Type
Industrial
Location
AL, FL, MO, VA
Estimated Hold Period
7-10 Years
In-Place Loan
0% LTV
721 Exchange Exit
Optional
Current Yield
4.97%
Average Yield
5.51%
Est. Avg. Tax-Adjusted Yield⁴
7.2%
Cap Rate Equivalent⁵
6.5%
Contact
Gerald F. "Jerry" Baker, III
Founder, Managing Principal
D 415.579.1660
M 415.278.8503
E jerry@baker1031.com
Income Forecast
4.97%
Year 1
5.06%
Year 2
5.17%
Year 3
5.31%
Year 4
5.46%
Year 5
5.57%
Year 6
5.68%
Year 7
5.8%
Year 8
5.95%
Year 9
6.12%
Year 10
Property images depicted may not be pictures of properties in any current offering and may be representative.
Investment opportunities presented herein are subject to immediate change and may be withdrawn without prior notice. Availability is fluid and often fluctuates rapidly; an offering may close before updated notification is provided. Investors are strictly advised to contact their authorized representative to confirm the current status of any investment prior to committing funds.
The information provided above is for summary purposes only and may be incomplete, outdated, or contain technical inaccuracies. This summary is qualified in its entirety by, and should be read in conjunction with, the relevant Private Placement Memorandum (PPM) and all associated supplements. Prospective investors must rely solely on the PPM and formal offering documents when evaluating the merits and risks of an investment.
⁴Sponsor's Cost Segregation analysis is currently incomplete; therefore, to estimate depreciation benefits, it is assumed the investor is in a 40% combined marginal tax bracket with no current depreciation basis in the property outside of this investment. Average income shielding for this DST is estimated at 45% based on standard IRS straight-line depreciation recovery periods for commercial real estate (39 years), as detailed in this Commercial Real Estate Depreciation Guide. Please refer to the Private Placement Memorandum (PPM) for specifics regarding a cost segregation; notably, even if the Trust does not perform a property-wide study, an individual investor may have the right to commission a private cost segregation study for their specific fractional interest to potentially unlock accelerated or "bonus" depreciation through a change in accounting method.
⁵The "Net-Adjusted Equivalency Cap Rate" is a comparative metric designed to normalize the returns of an all-inclusive Delaware Statutory Trust (DST) against a direct-ownership Net Lease (NNN) property. This metric is calculated by "reversing" a target cash-on-cash return to reconstruct a required Net Operating Income (NOI), adding back debt service and amortizing estimated acquisition, financing, and disposition "friction" costs over a 10-year holding period. This calculation is provided for educational and illustrative purposes only and is not a guarantee of future performance or an offer to sell securities. Limitations include the reliance on generalized market assumptions; individual property performance, actual interest rates, and specific transaction costs will vary. This should not be used as the primary basis for any investment decision. Estimates are derived from the following industry benchmarks: Acquisition Costs (2.5% - NAR Commercial), Loan Fees (1.0% - CREFC Guidelines), Sale Costs (6.0% - Altus Group), and Debt Assumptions (6.5% Interest/30-Yr Amort. - Select Commercial).
