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BREX Net Lease Industrial I DST
Available • Brookfield
Investment Overview
Brookfield’s BREX Net Lease Industrial I DST offers investors the opportunity to invest in a state-of-the-art, purpose-built asset that facilitates seamless distribution logistics through surface and rooftop parking, in addition to an expandable loading capacity. 34 Market Street benefits from an established industrial location and is fully triple-net-leased to
Amazon for the next 12 years.
After a 1031 DST Exchange, purchasers will be required to participate in a tax-deferred exchange under Section 721 of the Code (“721 Exchange”), via a fair market value option that may be exercised at the sponsor's discretion, which allows DST purchasers a potential opportunity to receive units of an operating partnership (“OP Units”) of a real estate investment trust (“REIT”) in exchange for the purchaser’s DST interests.
Investment Highlights
- 34 Market Street benefits from a central urban infill location north of Downtown Boston. This strategic positioning provides it with swift access to a densely concentrated—and fast-growing—affluent population, major road systems (including Routes 1 and 16 and Interstate 93), Downtown Boston’s urban core, and Boston Logan International Airport (BOS), the busiest airport in New England. The asset facilitates seamless distribution logistics—an important feature as demand for more frequent and faster direct-to-consumer deliveries continues to grow at a rapid pace.
- The property is fully triple-net-leased to Amazon with 12 years of remaining term and 2.5% annual rental rate increases. Amazon’s long-term lease includes a corporate guarantee and no termination or contraction options.
- The property is adjacent to Commercial Triangle, a 100-acre area undergoing high-density residential development, a 25,000-seat professional soccer stadium, and concert venue, and offers immediate connectivity to population hubs across Downtown Boston’s urban core and surrounding infill neighborhoods.
- 721 Exchange: An efficient opportunity for estate planning and wealth transfer, with OP Units transferred at stepped-up basis upon inheritance. Additionally, investors can take advantage of the ongoing liquidity provided by the REIT.
- Brookfield Real Estate Exchange LLC (“BREX”) is the sponsor of a tax-deferred exchange program BREX is a wholly-owned subsidiary of Brookfield REIT Exchange TRS LLC, which is a wholly-owned taxable real estate investment trust subsidiary of Brookfield REIT Operating Partnership L.P. (the “Operating Partnership”). Brookfield and its affiliates Sponsor other Delaware Statutory Trust (DST) investment opportunities - none of which have gone full-cycle as of yet.
Quick Facts
Sponsor
Brookfield
Status
Available
Property Type
Industrial
Location
MA
Estimated Hold Period
2 Years
In-Place Loan
51% LTV
721 Exchange Exit
Mandatory
Current Yield
6.1%
Average Yield
6.22%
Est. Avg. Tax-Adjusted Yield⁴
8.1%
Cap Rate Equivalent⁵
8.01%
Contact
Gerald F. "Jerry" Baker, III
Founder, Managing Principal
D 415.579.1660
M 415.278.8503
E jerry@baker1031.com
Income Forecast
6.1%
Year 1
6.35%
Year 2
0%
Year 3
0%
Year 4
0%
Year 5
0%
Year 6
0%
Year 7
0%
Year 8
0%
Year 9
0%
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).
