Your 1031 DST Authority
BREX Net Lease Data Center I DST
Offering Overview
BREX Net Lease Data Center I DST is a $98.0 million Delaware Statutory Trust from Brookfield (Brookfield Real Estate Exchange) offering 255 Caspian Drive, a Tier III single-tenant data center totaling 119,756 square feet (6.5 MW of critical IT capacity) in Sunnyvale, California, in the heart of Silicon Valley. The facility is net-leased to Equinix (S&P: BBB+) with 4.4% annual rent increases and a master lease running to 2046; the trust is capitalized with $58.98 million of equity and $39.0 million of debt fixed via hedge at 5.25% through 2031, a 39.8% LTV. A 721 UPREIT exchange option into a Brookfield REIT may be available at the sponsor's discretion. The offering is made under Rule 506(c) with a $100,000 minimum.
Investment Highlights
- Tier III single-tenant data center (119,756 sq ft, 6.5 MW) in Sunnyvale, the core of Silicon Valley.
- Net-leased to investment-grade Equinix (S&P: BBB+) with 4.4% annual rent increases.
- $39.0M loan fixed via hedge at 5.25% through 2031; 39.8% LTV; long master lease to 2046.
- Sponsored by Brookfield, one of the world's largest real estate investors, via its BREX 1031 platform.
- $100,000 minimum; optional 721 UPREIT exchange into a Brookfield REIT at the sponsor's discretion.
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 rare net-leased Silicon Valley data center backed by investment-grade Equinix and institutional Brookfield sponsorship. Suited to 1031 investors seeking credit-tenant, inflation-linked income with 721 optionality, who accept single-tenant concentration and 2031 refinance risk.
Pros
Investment-grade single-tenant credit (Equinix); contractual 4.4% annual rent growth; moderate 39.8% leverage; scarce Silicon Valley data-center asset benefiting from AI-driven demand; institutional Brookfield sponsorship; 721 optionality.
Cons
Single-tenant, single-asset concentration (Equinix); remaining base lease term shorter than the hold if renewals are not exercised; loan maturity in 2031 creates refinance risk; data-center obsolescence and technology risk; projected distribution schedule not yet posted.
Financing
Financing terms for this offering are summarized below.
Benchmark Comparison
| Metric | This Offering | Benchmark | Difference |
|---|---|---|---|
| Average Yield | 4.98% | 5.18% | −3.86% |
| Max Yield | 5.70% | 5.37% | +6.15% |
| 10-Yr Income Growth | 30.43% | 9.04% | +236.62% |
Benchmark reflects the average of comparable Net Lease offerings. Differences are relative to the benchmark.
Offering Documents
Offering Documents Available By Request
About the Sponsor
Brookfield is a global owner-operator of real assets with well over $1 trillion in AUM and roughly $31 billion in U.S. institutional real estate, and it reaches retail and exchange investors through the Brookfield Real Estate Income Trust. Its competitive advantage is operational rather than financial-engineering: deep in-house operating platforms across infrastructure, renewables and property allow it to drive value at the asset level. Backed by a perpetual-capital base and a 125-year institutional lineage, Brookfield brings owner-operator scale that few sponsors can replicate, with DST/non-traded vehicles a small slice of the whole.
This page describes a specific Delaware Statutory Trust offering (BREX Net Lease Data Center I 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.