BR Diversified Industrial Portfolio 7, DST

Offering Overview

Five single-tenant industrial properties (~552,438 RSF total) held debt-free in a parent/operating DST under the BIGR Exchange platform, 100% leased on in-place absolute/triple-net leases with a ~11.7-year WALT: Quality Property, Prince George/Richmond VA (141,568 SF, 2007, leased to NVR, Inc. (NYSE: NVR; S&P BBB+) to 2039, manufacturing/distribution with industrial outdoor storage); Corporate Property, Bridgeton/St. Louis MO (238,113 SF, 1996, leased to BlueLinx (NYSE: BXC; S&P B+) to 2037, warehouse/outdoor storage); Saland (41,600 SF, 2021) and Beachwood (45,096 SF, 2017) Properties, Jacksonville FL (both leased to Woodsman Kitchen & Flooring to 2038); and Shields Property, Huntsville AL (86,061 SF, 1997, leased to DESHAZO Automation to 2032). Properties acquired ~$1.35M below appraised value, in Sunbelt and industrial-corridor markets with rents ~25% below submarket and ~13% projected cumulative market rent growth through 2029. The Trust leases all five to an affiliated Master Tenant under a 10-year master lease paying Base, Additional, and Supplemental Rent, distributed up to investors. Exit options include an optional Section 721 FMV rollover into a Bluerock-affiliated operating partnership within ~7-10 years.

Investment Highlights

• The portfolio spans five properties and four tenants, mixing NYSE-listed credits with private regional operators: NVR (NYSE: NVR; S&P BBB+, ~$22B market cap, fourth-largest U.S. homebuilder) at Richmond and BlueLinx (NYSE: BXC; S&P B+, national building-products distributor) at St. Louis, plus privately held Woodsman Kitchen & Flooring (Jacksonville, two assets, ~45% of local new-home cabinetry) and DESHAZO Automation (Huntsville, custom robotics and cranes). Leases are absolute/triple-net, though two of the four tenants are unrated private companies and the leases sit with the operating tenants rather than rated parents.
• The Properties are owned free and clear with no mortgage, eliminating refinancing, maturity, rate-cap, and foreclosure risk and removing the equal-or-greater-debt replacement requirement for 1031 investors averse to boot-offsetting leverage. The structural cost is the absence of positive leverage, which caps levered return and is the primary reason the 4.80% going-in distribution sits in the high-4% range.
• In-place income is durable and long-dated, with a weighted-average lease term of ~11.7 years across staggered expirations (DESHAZO 2032, BlueLinx 2037, Woodsman 2038, NVR 2039) and contractual annual rent escalations, supporting escalating contractual income across the 7-10 year hold.
• In-place rents are approximately 25% below current submarket levels on average, with ~13% projected cumulative market rent growth through 2029 and the industrial sector forecast to lead all major CRE sectors in NOI growth (~4.1% annualized 2026-2029). This positions the portfolio for rent capture on rollover and terminal-value appreciation, though the long ~11.7-year WALT means little of that mark-to-market is realized during the hold.
• The Corporate Property (St. Louis, 5+ acres of paved industrial outdoor storage) and Quality Property (Richmond, 9 acres of paved industrial outdoor storage) carry highly coveted industrial outdoor storage, a supply-constrained use that can command a scarcity-demand premium and support both income and exit value.

Forecasted Cash Flow

Projected annual cash-on-cash distributions with the corresponding tax-equivalent yield over the hold, based on the sponsor’s underwriting assumptions.

Illustrative projections only — targeted distributions are not guaranteed and actual results will vary. Tax-equivalent yield assumes depreciation shelter of distributed income.

Analyst Notes

BR Diversified Industrial Portfolio 7 is a debt-free, income-oriented industrial net-lease DST whose return splits between a flat ~4.80% contractual Base-plus-Additional Rent floor and a performance-linked Supplemental Rent layer that lifts cash-on-cash to ~6.1% and averages ~5.5% over a 7-10 year hold. Like Bluerock's other net-lease offerings, it pairs durable long-WALT (~11.7-year) contractual income from a diversified five-asset, four-tenant pool with an explicit appreciation thesis grounded in ~25%-below-market rents and a favorable industrial supply/demand backdrop. The unlevered structure is genuinely defensive against the rate environment, sidestepping the leveraged-DST maturity wall, but caps yield and leaves terminal value as the dominant return driver, since the long WALT means little of the mark-to-market upside is realized during the hold. The key sensitivities are exit pricing and the pace of industrial rent growth, tenant retention and renewal at lease expiry (notably DESHAZO in 2032), and the credit performance of two unrated private tenants; the optional Section 721 FMV conversion into a Bluerock-affiliated operating partnership offers a tax-deferred alternative exit into an illiquid, sponsor-controlled vehicle. The after-tax profile is a secondary benefit (~6.9% average tax-equivalent yield), though the depreciation shelter (~31%-38%) is lower than leveraged peers given no interest deduction.

Financing

This offering is unleveraged — the DST holds its assets debt-free (0% loan-to-value), so no mortgage financing applies.

Benchmark Comparison

Benchmark reflects the average of comparable Industrial offerings. Differences are relative to the benchmark.

Offering Documents

Offering Documents Available By Request

About the Sponsor

Bluerock

Bluerock has sponsored syndicated 1031 exchanges for more than eighteen years, and its Bluerock Value Exchange (BVEX) arm packages multifamily, industrial and other core sectors into what it markets as 'Premier Exchange Properties.' Backed by a broader Bluerock platform of roughly $19 billion that also spans interval funds, the firm pairs institutional acquisition capability with a long DST track record across multiple cycles. Its national footprint and sector breadth position it as a diversified mid-to-large sponsor rather than a single-asset specialist.