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IREX IV Industrial Portfolio DST
Offering Overview
The Invesco Real Estate Exchange Program is offering up to 100% of the Class I beneficial interests in IREX IV Industrial Portfolio DST (the "Trust"), which indirectly owns a portfolio of three industrial assets (the "Offering). These properties, located in Fort Pierce, FL, Concord, NC, and Mebane, NC, are strategically located, modern, functional industrial buildings. They are situated in growth-oriented markets with strong tenant demand, institutional-quality infrastructure, and excellent regional connectivity. The stabilized properties offer significant potential for income growth through below-market rents, and long-term tenancy.
Investment Highlights
- IREX IV Industrial Portfolio DST owns a portfolio of three industrial assets located in Fort Pierce, FL, Concord, NC, and Mebane, NC, that are strategically located, modern, functional industrial buildings.
- The Properties are situated in growth-oriented markets with strong tenant demand, institutional-quality infrastructure, and excellent regional connectivity. According to the Sponsor, the stabilized properties offer significant potential for income growth through below-market rents and long-term tenancy.
- Modern specs: clear heights 26–36 ft, heavy dock ratio, ample trailer parking, and 2023–2024 construction at two assets.
- All three markets benefit from pro-business state policies and sustained industrial absorption
- Invesco, established in 1983, has approx $2.25 T in assets under management
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 offering is positioned as a defensive, fixed-income-surrogate industrial allocation: an unlevered, fully master-leased Sun Belt portfolio underwritten to a contractually fixed 4.33% current distribution with deferred mark-to-market and Section 721 optionality. The risk-adjusted profile is bifurcated: roughly two-thirds of appraised value sits in 2023-to-2024 Class A product in genuinely high-barrier Raleigh-Durham and Port St. Lucie corridors with corroborated demographic and corporate-capital tailwinds, while the residual Concord asset and the clustered 2029 Fort Pierce expirations constitute the principal underwriting fault lines. The zero-leverage structure aligns with the current macro cycle, neutralizing the refinancing and rate-cap stress pressuring levered DST vintages, but it also caps return to unlevered cash flow plus terminal value, leaving outcomes sensitive to exit cap rates and the pace at which below-market rents are marked. Feasibility of the underwriting hinges on master-tenant and guarantor solvency through cycle, successful 2029 re-tenanting at the multi-tenant asset, and INREIT capacity to honor the FMV and 721 exit on terms favorable to Beneficial Owners; the executive summary discloses neither a multi-year cash-flow projection beyond Year 1 nor a stated hold period, constraining independent verification of the return glide path.
Pros
At the micro level the portfolio presents a fully stabilized (100% occupancy across all three assets), unlevered, master-leased income vehicle with two new-construction Class A facilities exhibiting modern functional specifications (36-foot and 30-foot clear heights, ample dock and trailer positions, rear-load configurations) in supply-constrained, demographically expanding Sun Belt logistics corridors. The zero-leverage capitalization removes the refinancing and rate-cap exposure currently impairing comparable levered 1031 vehicles. Macro tailwinds are credibly evidenced in the materials: secular e-commerce penetration projected to roughly double over the decade, Southern industrial income returns of 4.4% exceeding the national average of 4.1%, and the South absorbing 56.4% of net absorption against a 36.4% inventory share, indicating demand outpacing regional supply. Lease structures embed contractual escalators and below-market in-place rents, providing a defined mark-to-market growth vector layered atop a contractually fixed 4.33% current distribution.
Cons
Asset-specific vulnerabilities concentrate in three areas. First, lease-expiration clustering within Interstate Commerce Center: Interstate Roofing Supply (20.4% of NRA, expiring 1/31/2029) and Interstate Interior Supply (14.6% of NRA, expiring 6/30/2029) roll within the same 2029 window, roughly 35% of that asset, while Interstate Plumbing Supply (14.8% of NRA, expiring 2/28/2034) carries no renewal options, elevating concentrated re-leasing and downtime risk on the second-largest position. Second, the Concord asset (11.1% of value) is a 1998-vintage, single-tenant facility with a 25-foot clear height functionally inferior to modern 32-to-36-foot bulk standards; its tenant lease expires 12/31/2029 (already a second extension) with one remaining option, creating binary rollover risk on the asset most exposed to obsolescence and negative re-leasing spreads. Third, the Fort Pierce roster is dominated by regional distribution tenants sharing the Interstate designation, raising questions of tenant-credit thinness and potential affiliation that could undercut the apparent diversification; combined with a master tenant, INREIT Master Lessee IV LLC, characterized as newly formed with limited resources and no significant assets, the 4.33% distribution is structurally dependent on the INREIT Operating Partnership guaranty, itself subject to non-traded-REIT redemption and liquidity dynamics. The below-market-rent upside is further constrained by renewal options struck at fixed 103% to 105% escalators permitting capped rather than full-market renewals.
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 | 4.33% | 0.00% | — |
| Max Yield | 4.33% | 5.85% | −25.98% |
| 10-Yr Income Growth | 0.00% | 14.41% | −100.00% |
Benchmark reflects the average of comparable Industrial offerings. Differences are relative to the benchmark.
Offering Documents
Offering Documents Available By Request
About the Sponsor
Invesco reaches the 1031 market through Invesco Real Estate Exchange (INREX), the DST arm of a global asset manager whose real estate group oversees roughly $85 billion, and it complements that with the Invesco Commercial Real Estate Finance Trust. With a 40-year real estate track record and institutional sourcing across sectors including industrial and cold storage, Invesco brings disciplined, research-driven underwriting to exchangers—DSTs being one channel within a roughly $1.8 trillion global platform.
This page describes a specific Delaware Statutory Trust offering (IREX IV Industrial Portfolio 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.