BREX Net Lease Industrial I DST

Offering Overview

A single Class A, single-story industrial warehouse and distribution center, 221,999 SF (plus ~220,000 SF rooftop parking and 515 spaces; ~441,999 SF gross building area), constructed in 2022 at 34 Market Street, Everett MA, in a dense urban-infill submarket less than five miles north of downtown Boston. The Property is 100% triple-net-leased to Amazon.com Services LLC (Amazon; S&P/Moody's AA/A1) with ~12 years of remaining term (Master Lease / Amazon Lease base term to March 23, 2046), 2.5% annual rent increases, and three 5-year renewal options at 98% of fair market value. The Trust acquired the Property in March 2026 for $155.4M (appraised at $158.0M), financed with an $84.0M PNC Bank loan (7-year term, maturing March 2033, variable SOFR+1.45% hedged to an effective fixed 4.837%) at 51.20% loan-to-cost, and leases it to a Brookfield/BF REIT-affiliated Master Tenant. Exit options include an optional Section 721 FMV rollover into the Brookfield REIT (BF REIT) operating partnership for OP units or cash, with a ~7-year base-case hold to loan maturity.

Investment Highlights

• The Property is 100% leased to Amazon (S&P/Moody's AA/A1), among the strongest corporate credits in net lease, on an absolute-triple-net basis. The lessee is Amazon.com Services LLC, the operating subsidiary, and the building is a purpose-built last-mile distribution facility integral to Amazon's Boston-market logistics, supporting renewal probability; the renewal options reset at 98% of fair market value, a modest below-market mechanic.
• The lease is long-dated, with ~12 years of remaining term (base term to March 2046) and fixed 2.5% annual rent increases, providing durable, contractually escalating income well beyond the 7-year base-case hold and underpinning residual value at exit.
• The asset occupies an irreplaceable infill location less than five miles north of downtown Boston in a dense, supply-constrained submarket with limited developable industrial land, a high-barrier last-mile position that supports both in-place rent and exit pricing; 2022 Class A construction and expandable loading capacity add functional durability.
• The $84.0M PNC Bank loan (unaffiliated lender) at an effective fixed 4.837% generates positive leverage over the asset's in-place yield, lifting investor cash-on-cash to a 6.10% going-in and ramping to 7.96% by year 7, a materially higher current yield than unlevered net-lease DSTs. The interest-only structure maximizes distributions, but the full $84.0M balloons at the March 2033 maturity and the interest-rate hedge resets at the fifth anniversary.
• The offering is sponsored by Brookfield (via Brookfield Real Estate Income Trust and its operating partnership), carries a comparatively low 7.50% total load with no separate acquisition fee, and provides an optional Section 721 UPREIT into BF REIT's operating partnership, a tax-deferred path into a large, diversified institutional REIT platform.

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

BREX Net Lease Industrial I is an institutionally sponsored, leveraged single-tenant net-lease DST whose return is driven by positive financial leverage on a top-tier credit rather than operational upside: an effective fixed 4.837% loan lifts a contractually 2.5%-escalating Amazon income stream to a 6.10%-to-7.96% cash-on-cash ramp (~7.01% average) over a seven-year hold. The investment case rests on the durability of one AA/A1 tenant in an irreplaceable Boston infill location on a lease running to 2046, well beyond the hold, which supports residual value, while the comparatively low 7.50% load and unaffiliated PNC financing distinguish it from higher-fee, affiliated-lender DSTs. The dominant risk-adjusted considerations are single-asset and single-tenant concentration, the interest-only balloon and hedge reset at the 2033 maturity (the base-case exit point, with the forecast assuming additional capital is raised if the loan is extended), and the form and timing of the optional Section 721 conversion into Brookfield's non-listed REIT operating partnership. Underwriting feasibility is high on in-place contractual income given Amazon's credit and the long lease; the credible variance lies in exit pricing, refinancing conditions at year 7, and eventual UPREIT terms rather than in-place cash flow. No tax-equivalent yield is disclosed in the offering materials.

Financing

Financing terms for this offering are summarized below.

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

Brookfield

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.