Your 1031 DST Authority
ERP 1031 Industrial Portfolio IV DST
Offering Overview
$49.15M DST industrial portfolio in Midland, Texas and the Permian Basin. The materials describe approximately $36.15M of equity, $13.0M of debt, and a 5.25% initial annual cash distribution, subject to the offering documents.
Investment Highlights
- Industrial portfolio in Midland, Texas.
- Permian Basin market exposure.
- Approximately $36.15M of equity.
- Approximately $13.0M of debt.
- 5.25% initial annual distribution stated.
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
The 5.25% initial distribution is not a guarantee; reset rates and exit value matter.
Pros
Industrial exposure, stated initial distribution, moderate leverage, and Permian Basin positioning.
Cons
Energy and industrial concentration, leverage, reset-rate risk, and illiquidity.
Financing
Financing terms for this offering are summarized below.
Benchmark Comparison
| Metric | This Offering | Benchmark | Difference |
|---|---|---|---|
| Average Yield | 5.25% | 0.00% | — |
| Max Yield | 5.25% | 5.81% | −9.64% |
| 10-Yr Income Growth | 0.00% | 16.62% | −100.00% |
Benchmark reflects the average of comparable Industrial offerings. Differences are relative to the benchmark.
Offering Documents
About the Sponsor
ERP (Energy Related Properties) is a DST sponsor focused on energy-related real estate rather than the multifamily and net-lease assets that dominate the 1031 market. It structures its holdings as Delaware Statutory Trusts (e.g., ERP 1031 portfolios) distributed through its managing broker-dealer, American Alternative Capital, LLC. Public disclosure on founding year, AUM, and full-cycle track record is limited, so detailed terms and risk factors are set out in each program's Private Placement Memorandum.
This page describes a specific Delaware Statutory Trust offering (ERP 1031 Industrial Portfolio IV 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.