Blue Owl Real Estate Exchange V DST Overview
Blue Owl Real Estate Exchange V DST (the "Parent Trust") is a Delaware Statutory Trust offering sponsored by Blue Owl Real Estate Exchange LLC, an affiliate of Blue Owl Real Estate Net Lease Trust, a non-listed, perpetual-life REIT. Its external adviser, Blue Owl Real Estate Capital LLC (formed in 2009, approximately $74.7 billion of real estate assets under management), is part of Blue Owl Capital Inc. (NYSE: OWL), a global alternative asset manager with roughly $295.6 billion in assets under management as of September 30, 2025. The offering sells Class 1 beneficial interests to accredited investors at a $250,000 minimum (a 0.0928% interest), up to a maximum offering amount of $269,491,892 of equity. Through two wholly owned operating trusts (the Magna Trust and the AR Trust), the Parent Trust indirectly owns three single-tenant industrial manufacturing facilities totaling approximately 2,341,200 rentable square feet: the Magna Property at 111 Cosma Drive, Bowling Green, Kentucky (about 1,351,200 square feet on 134.29 acres, 100% leased to Bowling Green Metalforming L.L.C., an operating unit of publicly traded automotive supplier Magna International Inc.); the AR Ohio Property at 1115 South Wayne Street, Saint Marys, Ohio (about 701,000 square feet on 107.68 acres); and the AR Michigan Property at 13505 North Haggerty Road, Plymouth, Michigan (about 289,000 square feet on 41.13 acres). Both AR Properties are leased to American Rheinmetall, a subsidiary of German industrial group Rheinmetall AG. Each operating trust master-leased its property to a Blue Owl-affiliated Master Tenant under a 20-year net lease, and that Master Lease is guaranteed by the Blue Owl Operating Partnership. The Parent Trust acquired the portfolio for $249,280,000, and the properties carry no mortgage debt. The structure is intended to qualify as like-kind replacement property under IRC Section 1031, letting exchangers defer capital gains while holding a passive, professionally managed interest. It suits accredited 1031 investors seeking a debt-free, single-sponsor industrial holding with long net-lease income and a potential UPREIT (Section 721) exit through the Operating Partnership's Fair Market Value Option.
Highlights
The portfolio is anchored in three established U.S. industrial-manufacturing markets along the automotive and defense supply chains. The largest asset sits at 111 Cosma Drive in Bowling Green, Kentucky, a recognized automotive-manufacturing hub, occupying roughly 134.29 acres. The AR Ohio Property at 1115 South Wayne Street in Saint Marys, Ohio spans about 107.68 acres, and the AR Michigan Property at 13505 North Haggerty Road in Plymouth, Michigan sits on about 41.13 acres in the metro-Detroit industrial corridor. These are not speculative, multi-tenant business-park sites but large, single-purpose facilities embedded in the operations of national and multinational manufacturers, giving the locations strategic, mission-critical relevance to the tenants that occupy them. The Midwest and border-South manufacturing belt in which the assets sit offers deep labor pools, established logistics access, and long-standing demand from the vehicle-systems and industrial sectors these tenants serve.
The three facilities are institutional-quality, single-tenant industrial buildings that are 100% leased. The Magna Property is a roughly 1,351,200-square-foot single-story manufacturing plant built between 2005 and 2015 and renovated in 2025, featuring approximately 40-foot warehouse clear height, 20 loading-dock bays, three drive-in bays, and about 732 parking spaces. The AR Ohio Property totals approximately 701,000 square feet with about 300 parking spaces, and the AR Michigan Property is an approximately 289,000-square-foot facility built in 2002 with additions in 2005 and 2018, offering roughly 27-foot clear height, four dock bays, six drive-in bays, and about 381 parking spaces. Each property is occupied under a long-term triple-net end-tenant lease: the AR Properties by American Rheinmetall (a Rheinmetall AG subsidiary) and the Magna Property by an operating unit of Magna International Inc. The single-tenant, mission-critical nature of these plants supports occupancy stability.
A defining feature of this offering is its all-equity, debt-free capital structure. The private placement memorandum states plainly that "the Properties are not encumbered with any debt," so the loan-to-value ratio is effectively 0%. The Parent Trust raises up to $269,491,892 of equity and acquired the portfolio for $249,280,000 without any mortgage financing. For investors, an unleveraged structure removes the risks that typically weigh most heavily on leveraged DSTs: there is no loan maturity or balloon payment to refinance, no debt-service coverage covenant to breach, and no lender able to foreclose in a downturn. Income is further supported by a Master Lease guaranteed by the Blue Owl Operating Partnership, whose guaranty requires it to maintain net assets equal to at least three times the Master Tenant's remaining fixed-rent obligations (the Net Worth Standard). The trade-off is that an all-cash structure typically produces lower cash-on-cash yield than a leveraged deal.
The offering is sponsored by an affiliate of Blue Owl, one of the largest alternative asset managers in the world. Blue Owl Capital Inc. (NYSE: OWL) reported approximately $295.6 billion of assets under management and more than 1,369 employees as of September 30, 2025. The program's adviser, Blue Owl Real Estate Capital LLC, was formed in 2009 and manages roughly $74.7 billion across its real estate and real-asset strategies, with a focus on single-tenant properties net-leased long-term to credit tenants. The DST sits within the Blue Owl Real Estate Net Lease Trust platform, a non-listed, perpetual-life REIT, and the properties are professionally managed through the affiliated Manager and Master Tenant, giving investors a vertically integrated, institutional operator. The "Exchange V" designation reflects an ongoing series of 1031-exchange DST programs sponsored on this platform, indicating repeat sponsor experience with the DST structure.
The offering is designed for Section 1031 exchangers: an Interest is intended to qualify as like-kind replacement property, allowing an investor to defer capital-gains tax on a relinquished property, with the tax treatment supported by a tax counsel opinion and consistent with IRS Revenue Ruling 2004-86. Because the portfolio carries no debt, investors are not required to replace mortgage debt, and the memorandum also notes potential eligibility for Section 1033 exchanges. The offering additionally provides a built-in UPREIT exit: under the Fair Market Value (FMV) Option, the Operating Partnership may, at its sole discretion during a one-year window that opens after investors have held for at least two years, acquire the Interests in exchange for OP Units (a Section 721 contribution intended to be tax-deferred) or cash. OP Units can subsequently be redeemed for Blue Owl REIT shares, giving Beneficial Owners potential access to a larger, professionally managed, diversified net-lease portfolio and an eventual liquidity path.
Analysis of Blue Owl Real Estate Exchange V DST
Insights
Read this as a fixed-income substitute, not a growth play: a debt-free, master-leased net-lease trust built to protect principal and defer tax. The yield is deliberately thin — 4.77% for five years, stepping to 5.15%, a 4.96% average — screening Meets Average on income but Below Average on both peak yield and growth, exactly what an all-cash deal should produce. That's honest, not weak: at 0% leverage there's no balloon, no covenant, no lender to foreclose, and the 7.50% load is light for the space (peers clear 9%) — a fair toll for real downside protection. The payout is well covered: a ~7.37% property cap rate against a 4.77% distribution is genuine NOI, not return of capital. The crux is the exit, not the coupon. With income capped near 5% and appreciation screening Below Average, total return hinges on residual value, and that residual is sponsor-controlled: the FMV/UPREIT option is exercisable at Blue Owl's sole discretion, so the tax-deferred 721 roll into a non-listed, perpetual REIT happens when it suits Blue Owl, not the holder — watch that, the two-credit concentration, and the Guarantor's 3x Net Worth Standard. What the marketing buries: American Rheinmetall and Magna's Bowling Green unit are not the investor's counterparty. Income flows from an affiliated Blue Owl master tenant backstopped by the Blue Owl Operating Partnership guaranty, so this is a bet on Blue Owl's balance sheet wrapped around mission-critical plants — and the ~260-bps gap between property cap rate and investor yield is the price of that wrapper plus a day-one mark: the $269.5M raise tops both the $241–252M appraisal and the $249.3M purchase price, so NAV starts below par. Verdict: own it if you're exiting a low- or no-debt property and want principal protection over yield; pass if you carry mortgage debt to replace (all-cash risks taxable boot), need current income, or want to control your liquidity.
Advantages
This is a debt-free, unleveraged DST, which eliminates the refinancing, balloon-maturity, and foreclosure risks that most often impair leveraged 1031 offerings. It is backed by an institutional sponsor: an affiliate of Blue Owl Capital Inc. (NYSE: OWL), a global manager with roughly $295.6 billion in AUM. The three-property industrial portfolio (approximately 2,341,200 square feet) is 100% leased on long-term, triple-net end-tenant leases to substantial operators, American Rheinmetall (a Rheinmetall AG subsidiary) at the two AR Properties and an operating unit of publicly traded Magna International Inc. at the Magna Property. Each property is master-leased to the Master Tenant on a 20-year net lease, and the Master Lease is guaranteed by the Blue Owl Operating Partnership, which must maintain assets of at least three times the remaining fixed-rent obligations (the Net Worth Standard). Investors gain fully passive, professionally managed ownership suitable as like-kind replacement property for a Section 1031 exchange, with the Magna Property also benefiting from a PILOT property-tax abatement program in Kentucky. The offering carries a relatively accessible $250,000 minimum and provides potential UPREIT optionality: the FMV Option can convert Interests into OP Units (a tax-deferred Section 721 contribution) that may later be redeemed for shares of the non-listed Blue Owl REIT, offering an eventual diversification and liquidity path.
Concerns
The risks are real and specific. The Interests are illiquid with no public market, and investors have no voting rights and no control over management, sale, or operation of the properties; the Trust Agreements even limit information rights otherwise available under the Delaware Statutory Trust Act. The portfolio is concentrated, three industrial assets leased to only two end-tenant credits (American Rheinmetall and Magna/BGM), so the memorandum expressly cites a "lack of diversity of investment by asset class and tenants," and both tenants are exposed to cyclical automotive and defense demand and foreign-parent ownership. As a DST, the trust cannot raise new capital, refinance, renegotiate leases (except on tenant bankruptcy/insolvency), or reinvest; if the properties face distress the Manager may be forced into a Transfer Distribution to a Springing LLC, which can trigger a sale on unfavorable terms and cause loss of direct-ownership 1031 treatment and adverse tax consequences. Income depends on the affiliated Master Tenant (wholly owned by the Operating Partnership) and on the Guarantor maintaining its Net Worth Standard, and numerous conflicts of interest exist because the Sponsor, Manager, Master Tenant, and Guarantor are all Blue Owl affiliates. The load is heavy: up to 7.50% of the offering (up to 6.0% sales load plus 1.50% expense reimbursement) plus ongoing DST management (0.15%) and investor servicing (0.25%) fees, and the offering is priced above the appraised value of $241,180,000-$252,140,000. The FMV/exit option is exercisable only at the Operating Partnership's sole discretion, so liquidity is not guaranteed, and the pro forma Financial Forecast is explicitly speculative and dependent on assumptions including the PILOT abatement and the Guarantor's performance.
Blue Owl Real Estate Exchange V DST — Complete Offering Data
Offering & Structure
Investment NameBlue Owl Real Estate Exchange V DST
SponsorBlue Owl
StructureDelaware Statutory Trust (DST)
StatusUnder Review
Last Updated2026-01-06
Size & Availability
Total Offering$269,491,892
Equity$269,491,892
DebtAll-Cash
Available Equity$269,491,892 (100% of equity)
Minimum Investment$100,000
Total Load7.50%
Property
Property TypeIndustrial
StrategyCore
LocationKY, MI, OH
Market TierTier 2
Income & Projections
Average Yield4.96%
Projected Yields (Y1–Y10)Y1 4.77% · Y2 4.77% · Y3 4.77% · Y4 4.77% · Y5 4.77% · Y6 5.15% · Y7 5.15% · Y8 5.15% · Y9 5.15% · Y10 5.15%
Tax-Adjusted Yield11.61%
Cap Rate Equivalent7.37%
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period2 years
721 Exchange ExitMandatory
Benchmarks (vs sector median)
Avg. Income4.96% vs 5.33% market — Meets Average
Growth7.97% vs 15.09% market — Below Average
Peak5.15% vs 5.80% market — Below Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
