Your 1031 DST Authority
BR Diversified Industrial Portfolio 8, DST
Offering Overview
Five debt-free, single-tenant industrial properties totaling approximately 463,806 square feet across Florida, Illinois, and Missouri. The portfolio comprises two Jacksonville properties leased to Woodsman Kitchens & Floors, a Wheeling distribution facility leased to Shure, a Punta Gorda distribution/outdoor-storage facility leased to Hajoca, and a Kansas City warehouse/outdoor-storage facility leased to BlueLinx. The properties are 100% leased under absolute-net or triple-net leases with a weighted-average lease term of nearly 13 years and contractual rent increases averaging more than 2.5%. The Trust acquired the portfolio for $47.43 million versus an aggregate as-is appraisal of $48.25 million. Bluerock projects a 7-10 year hold and cash flow rising from 4.86% to 5.96%, with a sponsor-controlled FMV option that may result in cash or a Section 721 exchange into affiliated operating-partnership units. Offered under Rule 506(c).
Investment Highlights
- Five-property, 463,806-square-foot industrial portfolio diversified across Florida, Illinois, and Missouri.
- Debt-free capitalization eliminates interest-rate, refinancing, maturity, and foreclosure risk.
- Nearly 13-year weighted-average lease term with annual escalations averaging more than 2.5%.
- In-place rents are approximately 20% below submarket levels, with 15% projected cumulative market-rent growth through 2030.
- Piper and Warren include scarce industrial outdoor storage; the portfolio was acquired approximately $823,000 below aggregate as-is appraisal 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
A defensive, unlevered industrial-income offering whose return depends more on contractual rent growth and terminal value than financial leverage. The affiliated master tenant is thinly capitalized through a $500,000 demand note, while Bluerock controls the manager, master tenant, and FMV-option counterparty. The FMV option may force a disposition, although investors can elect cash rather than OP units.
Pros
Debt-free structure; geographic and tenant diversification; 100% occupancy; long-duration absolute-net and triple-net leases; below-market rents; contractual escalators; a $2 million trust-controlled reserve; and industrial-outdoor-storage exposure.
Cons
Initial cash yield is modest; Supplemental Rent is performance-dependent; Woodsman occupies two properties; the 235,335-square-foot BlueLinx property represents roughly half the portfolio area; three Florida assets face hurricane exposure; upfront load is approximately 11.68%, with a potential 3.5% disposition fee.
Financing
This offering is unleveraged — the DST holds its assets debt-free (0% loan-to-value), so no mortgage financing applies.
Benchmark Comparison
| Metric | This Offering | Benchmark | Difference |
|---|---|---|---|
| Average Yield | 5.32% | 0.00% | — |
| Max Yield | 5.96% | 5.85% | +1.88% |
| 10-Yr Income Growth | 22.63% | 14.41% | +57.04% |
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 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.
This page describes a specific Delaware Statutory Trust offering (BR Diversified Industrial Portfolio 8, DST) and is provided for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offering is made solely to verified accredited investors and only by means of a confidential private placement memorandum (PPM).
All figures shown — including minimum investment, cash-flow projections, tax-equivalent yield, loan-to-value, and hold period — reflect the sponsor's current estimates and assumptions and are not guarantees of future performance. Tax-equivalent yield depends on each investor's tax circumstances; projected distributions may not be achieved and actual results will vary. Sponsor track record, benchmark data, and full-cycle averages describe prior programs and are not indicative of the results of this offering.
An investment in a DST is speculative, illiquid, and involves a high degree of risk, including the possible loss of the entire amount invested. There is no public market for these interests, distributions are not guaranteed, and investors have no control over property operations. 1031 exchange and tax treatment depend on each investor's individual circumstances and on tax laws that are subject to change; consult your own tax and legal advisors.
Tax-equivalent yield represents the pre-tax yield a fully taxable investment would need to generate in order to match the after-tax cash flow of this offering. It assumes that a portion of distributions is sheltered by depreciation and other deductions, and it depends entirely on each investor's individual tax bracket, state of residence, and holding structure. It is illustrative only and is not a projection of return. Cap rate equivalent is the implied capitalization rate (net operating income divided by purchase price) shown solely for comparison to direct real estate; it is not a distribution rate, a yield, or a measure of investor return.
This offering and all terms shown are subject to change, withdrawal, or cancellation at any time without notice, and availability is not guaranteed. Nothing on this page creates a commitment or reservation. An investment is confirmed only upon the sponsor's acceptance of fully executed subscription documents; no other communication, indication of interest, or reservation constitutes a binding investment.