Bluerock Fully Subscribes $60 Million Industrial Portfolio

The unlevered, all-cash portfolio spans 550,000 square feet across Alabama, Florida, Missouri, and Virginia. These five industrial properties, which include manufacturing and distribution facilities, are fully occupied by tenants such as NVR, Inc. and BlueLinx Holdings. With a weighted average lease term of nearly 12 years, the assets provide a 4.80% annualized cash distribution rate to the trust. Bluerock secured the properties for $1.35 million below their combined appraised value, positioning the portfolio to capture growth as existing rents sit roughly 25% below current submarket rates.

Josh Hoffman, president of Bluerock Value Exchange, pointed to long-term manufacturing and distribution trends as primary drivers for the sector's performance. The firm, which manages over $20 billion in assets, structured the portfolio to include three distinct exit paths for beneficial owners: a tax-deferred 721 UPREIT exchange, a cash redemption for subsequent 1031 exchanges, or a taxable cash exit. This flexibility aims to accommodate varied estate planning objectives while investors capitalize on an industrial sector projected by Green Street to see 4.1% annualized NOI growth through 2029.